What Is the FDIC?
The Federal Deposit Insurance Corporation is an independent agency of the United States government. The FDIC protects you against the loss of your deposits if an FDIC-insured bank fails. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC began operations in 1934, no depositor has ever lost a penny of FDIC-insured deposits.
Why Is FDIC Insurance Important to You?
All FDIC-insured banks must meet high standards for financial strength and stability. The FDIC, with other federal and state regulatory agencies, regularly reviews the operations of insured banks to ensure these standards are met. Even with these safeguards, some insured banks fail. If your insured bank fails, FDIC insurance will cover your deposits, dollar for dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit.
What Does the FDIC Insure?
FDIC insurance covers all types of deposits at insured banks, including checking accounts, NOW accounts, savings accounts, money market deposit accounts, time deposits such as certificates of deposit (CDs), or an official item issued by a bank (such as a cashier's check or money order), up to the insurance limit.
The FDIC does not insure the money you invest in stocks, mutual funds, life insurance policies, annuities, or municipal securities, even if you purchased these products from an insured bank.
The FDIC does not insure safe deposit boxes or their contents.
The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government.
How Much Coverage Does the FDIC Provide?
The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank. However, funds deposited in separate branches of the same insured bank are not separately insured.
If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank, you do not need to worry about your insurance coverage - your deposits are fully insured.
Is There Any Coverage Over $250,000?
The FDIC provides separate insurance coverage for deposit accounts held in different categories of legal ownership. You may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different ownership categories and meet the requirements.
Common Ownership Categories
- Single Accounts
- Joint Accounts
- Certain Retirement Accounts
- Revocable Trust Accounts
- Irrevocable Trust Accounts
- Employee Benefit Plan Accounts
- Corporation / Partnership / Unincorporated Association Accounts
- Government Accounts
What If You Have Additional Questions?
Additional guidance can be found on the FDIC website - www.fdic.gov or by calling toll-free 1-877-ASK-FDIC (1-877-275-3342).
Another great tool is to use the FDIC's online Electronic Deposit Insurance Estimator (EDIE) at www.fdic.gov/edie. EDIE calculates the insurance coverage and lets you know, on a per-bank basis, how the insurance rules and limits apply to your specific group of deposit accounts - what's insured and what portion (if any) exceeds coverage limits at that bank.
For more assistance in determining your FDIC deposit insurance coverage, contact United Community Bank. We will be glad to answer any additional questions. Location Info