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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.

Winter 2008/2009 – Special Edition: Managing Your Money in Good Times and Bad

Make the Most of Your FDIC Guarantee
How to be sure your deposits are fully insured

For the last 75 years, especially during times of economic uncertainty, families have counted on the certainty of federal deposit insurance. "The American people can rest comfortably knowing that their FDIC-insured deposits are 100 percent safe," said FDIC Chairman Sheila C. Bair. "In fact, there's no safer place in the world for their checking, savings or retirement money." How can you make sure all your deposits are safely protected within the federal insurance limits?

Learn the rules for deposit insurance coverage. In particular, be aware that Congress has temporarily raised the basic deposit insurance coverage from at least $100,000 to at least $250,000 per depositor, through (under current law) December 31, 2009. That means, through 2009, if you (or your family) have up to $250,000 in your deposit accounts at one insured bank, you don't need to be concerned about the safety of your money.

Also remember that you may qualify for more than the basic insurance coverage at one insured bank if the funds are held in different "ownership categories." For example, under existing law, if a couple has deposits in single accounts, joint accounts and Individual Retirement Accounts (IRAs) at the same bank, through year-end 2009, they could qualify for up to $1.5 million of FDIC insurance coverage (see table).

An Example of How FDIC Insurance Can Add Up
Account Holders Maximum Coverage
Husband's Single Account $250,000
Wife's Single Account $250,000
Husband and Wife's Joint Account $500,000
Husband's IRA $250,000
Wife's IRA $250,000
Total Insurance Coverage $1,500,000

In addition, if you have deposits in another category called revocable trust accounts — typically payable-on-death and living trust accounts — you'd receive up to $250,000 in FDIC insurance coverage for each beneficiary.

That means a revocable trust account owned by a husband and wife naming four beneficiaries would be insured up to $2 million. (The husband is insured up to $1 million because he has named four beneficiaries, and the same applies to the wife.)

If you have more than $250,000 at one insured institution, find out if it is fully insured. It's especially important to take a closer look at your deposit insurance coverage after an unusually large deposit, such as after a home sale, an inheritance, or if you "roll over" a large company pension into an IRA at a bank.

Another time to review your insurance coverage would be after the death of a joint account owner or a beneficiary on a revocable trust deposit account. Likewise, look at your deposit insurance if you have accounts at two institutions that merge.

If you have more than $250,000 at one insured institution, find out if it is fully insured. It's especially important to take a closer look at your deposit insurance coverage after an unusually large deposit, such as after a home sale, an inheritance, or if you "roll over" a large company pension into an IRA at a bank.
The FDIC has resources you can turn to if you have questions about your deposit insurance coverage. They include information online at www.myFDICinsurance.gov, which features our Electronic Deposit Insurance Estimator (EDIE), an interactive Web site that can be used to calculate your deposit insurance coverage. A Spanish version of EDIE is available at www.fdicseguro.gov.

EDIE also will provide you with a printable report for each bank that shows whether your deposits are within or exceed coverage limits. "EDIE's ability to provide insurance information about your accounts makes it much more useful than a brochure," said Kate Spears, an FDIC Senior Consumer Affairs Specialist.

You also can call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). Information specialists are available 7:00 a.m. to 8:00 p.m. (Eastern Time), Monday through Friday, and from 9:00 a.m. to 5:00 p.m., Saturday and Sunday.

If you're sure that some of your deposits are over the FDIC insurance limit, consider taking steps so that all the money is fully insured. Depending on your situation, one possibility may be to place some funds in another ownership category at the same institution. That's because deposits in separate insurance categories are separately insured up to the FDIC's limit.

Another option is to move some funds to deposit accounts at another FDIC-insured institution. This option works well for people who don't want, or don't qualify for, other ownership categories at their existing bank.

"Remember, you can always check with the FDIC if you are unsure about your coverage or your options for becoming fully insured," said Martin Becker, also a Senior Consumer Affairs Specialist at the FDIC.

For more information about FDIC insurance, visit www.fdic.gov/deposit/deposits.

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Last Updated 5/26/2009

communications@fdic.gov