The FDIC—short for the Federal Deposit Insurance Corporation—is an independent agency of the United States government. The FDIC protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government to at least $250,000.
Here are some ways to make sure your deposits are covered to the maximum extent possible.
Basic Insurance – The standard maximum deposit insurance amount is $250,000 per depositor per insured depository institution for each account ownership category. This coverage limit was made permanent by the Dodd-Frank Wall Street Reform and Consumer Protection Act of July 2010.
Retirement Accounts – Retirement account deposits are insured separately up to $250,000. These include IRAs, Keogh plan accounts, 457 plan accounts and certain other self-directed accounts.
Brokered Deposit Accounts – Consumers are now able to purchase a variety of deposit products through organizations such as trade associations, unions, professional societies, and alumni organizations. These deposits are advertised as FDIC-insured. To make sure of this coverage, study the plan documents to ensure that:
FDIC Insured Banks – You can learn whether a particular bank or savings association has FDIC coverage by contacting the FDIC. Insured banks must display the official sign at each teller window where deposits are received. Look for this symbol of safety at your bank:
Estimate your coverage with EDI the Estimator at https://edie.fdic.gov/.