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FDIC Consumer News - Spring 1999

Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Test Your Deposit Insurance IQ

How well do you understand the FDIC's deposit insurance rules? Depositors should have at
least a basic knowledge of the rules, in case their bank or savings institution were to fail. An awareness of the rules is especially important if you or your family have $100,000 or more on deposit at one insured institution. Take our 10-question quiz and find out how well informed
you are about FDIC insurance.

1. By law, all commercial banks and savings
associations in the United States are insured
by the FDIC. True or false?

2. I have $100,000 in certificates of deposit
(CDs) at the bank where I have $100,000 in
Individual Retirement Accounts (IRAs). I'm
fully insured because retirement accounts are
insured up to $100,000 separately from my
other money at the bank. True or false?

3. If I have accounts at two FDIC-insured
institutions that merge, my deposits are
combined immediately for insurance purposes.
True or false?

4. I have $20,000 in a checking account in my
name alone, and at the same bank I have a
$100,000 trust account in my name but
payable to my mother when I die. All of my
money is protected because the payable-
on-death (POD) account is insured to
$100,000 separately from my checking
account. True or false?

5. I have my checking account at the same
bank where I keep the accounts of my sole
proprietorship (a business owned by just
one person, not by a corporation). Under
the insurance rules, my sole proprietorship
accounts are added together with my
personal accounts at the bank and are
insured to $100,000 in total. True or false?

6. My spouse and I have joint accounts
totaling $200,000, but because both of
our names are on the accounts, they're fully
insured ($100,000 for each of us).
True or false?

7. I have three accounts at the same bank
-a $100,000 savings account for myself,
a $50,000 checking account just for me,
and a separate $50,000 checking account
I own jointly with my mother. All three
accounts are separately insured for
$100,000 each. True or false?

8. I've invested in the stock and bond markets
by buying shares in a mutual fund sold by my
bank. Because the institution is FDIC-insured,
that means my investment is also protected by
the FDIC. True or false?

9. I have three different joint accounts at the
same bank - one for $100,000 with my spouse,
another for $100,000 with my sister, and a third
for $100,000 with my brother. Because I own
each account with a different person, each
account qualifies for $100,000 of insurance.
True or false?

10. I can get additional FDIC insurance by
opening accounts at different branches of my
institution. True or false?

All Quiz Answers

How did you do? If a little extra homework is needed, to be sure your savings are entirely safe, read the FDIC booklet "Your Insured Deposits," which is being updated to include the latest rule changes. It will be available free of charge from the FDIC's Public Information Center (the toll- free phone is 800-276-6003, the address is 801 17th Street, NW, Room 100, Washington, DC 20434, and the e-mail address is publicinfo@fdic.gov), and soon from insured banks and savings associations. "Your Insured Deposits" and other insurance-related information (including the "Electronic Deposit Insurance Estimator" service that allows you to check whether your accounts are fully insured) also appear on our Internet site at www.fdic.gov.

You also can contact the FDIC's Division of Compliance and Consumer Affairs call 800-934-3342, write to 550 17th Street, NW, Washington, DC 20429, or e-mail consumer@fdic.gov) to get answers to specific questions.
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Last Updated 07/28/1999 communications@fdic.gov