The Federal Deposit Insurance Corporation is in place to keep public confidence in the financial system of the United States high by providing insurance for deposits in banks and thrift institutions. This coverage extends up to $250,000 for each account. The FDIC identifies, monitors and addresses risk posed to the deposit insurance funds and limits the effect on the economy when a bank or other financial institution fails.
FDIC coverage is available for all deposit accounts at insured banks and savings institutions including checking, NOW, savings accounts, money market deposit accounts and certificates of deposit (CDs). However, FDIC coverage is not available for the following:
- The contents of safe deposit boxes.
- Money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these items were purchased from an insured bank or savings association.
FDIC Account Coverage Limits
- Coverage limits for FDIC insurance are as follows:
- Single accounts (owned by one person): $250,000
- Joint accounts (two or more people): $250,000 per co-owner
- IRAs and other certain retirement accounts: $250,000 per owner
- Revocable trust accounts: each owner is insured up to $250,000 for interests of each beneficiary, subject to specific limitations and requirements
The above coverage limits refer to the total of all deposits that account holders have at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met. For further information regarding FDIC account coverage, visit www.FDIC.gov.