Deposit insurance is especially important for older Americans who have worked hard over the years to accumulate savings. Here are some facts to remember.
Every depositor is protected for up to at least $250,000 if an FDIC-insured bank fails. The basic FDIC insurance coverage amount is $250,000 for each depositor at a bank; however, coverage may be higher based on how accounts are set up. For instance, at one bank, your combined deposits in single accounts (for one owner) are covered up to $250,000, and your share of any joint accounts (for two or more people) is separately protected up to an additional $250,000.
FDIC insurance protects only deposits. Insured deposits include all traditional bank accounts such as checking, savings and certificate of deposit (CD) accounts. While some non-deposit investment products — such as stocks, bonds, mutual funds, annuities (see For Seniors: 15 Quick Tips for Protecting Your Finances) and municipal securities — typically offer potentially greater returns than deposits, they are not FDIC-insured, even if they were sold through an insured bank. You may risk losing some or all of your investment.
The FDIC can answer all of your questions about deposit insurance coverage. For deposit insurance resources and more information about different ownership categories and qualifying for more than $250,000 in coverage, see For More Help or Information for Seniors and Families.