Federal Deposit Insurance Corporation (FDIC) Coverage
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not; however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.
To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank. The chart shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
Standard FDIC Deposit Insurance Coverage Limits
|Account Ownership||Insurance Limits|
|Single Accounts (owned by one person)
||$250,000 per owner
|Joint Accounts (two or more persons)
||$250,000 per co-owner
|IRAs and certain other retirement accounts
||$250,000 per owner
|Revocable Trust Accounts
||$250,000 per owner per beneficiary up to 5 beneficiaries (more coverage is available with 6 or more beneficiaries subject to specific limitations and requirements)
|Corporation, Partnership and Unincorporated Association Accounts
||$250,000 per corporation, partnership or unincorporated association
|Irrevocable Trust Accounts
||$250,000 for the non-contingent, ascertainable interest of each beneficiary
|Employee Benefit Plan Accounts
||$250,000 for the non-contingent, ascertainable interest of each plan participant
||$250,000 per official custodian
|Noninterest-Bearing Transaction Accounts (NIBTA)
||Beginning January 1, 2013, deposits held in noninterest-bearing transaction accounts will be FDIC-insured to the legal maximum of $250,000 for each ownership category.*