Understanding FDIC

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Deposit Insurance Coverage

The more you know, the safer your money.
The FDIC – short for the Federal Deposit Insurance Corporation – is an independent agency of the United States government. FDIC coverage protects you against the loss of your 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.
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.
The FDIC insures all deposits, including checking, NOW and savings accounts, money market deposit accounts, and certificates of deposit (CDs), up to the insurance limit.
On July 21, 2010, the deposit insurance coverage for all deposit accounts was permanently raised to $250,000 per depositor, per insured depository institution for each account ownership category. Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, was increased permanently to $250,000 per depositor in 2006. 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 basic insurance amount is $250,000 per depositor per insured bank.
The U.S. Senate has voted not to extend FDIC’s Transaction Account Guarantee (TAG), which provides unlimited federal protection of deposits. As a result, effective January 1, 2013, funds deposited in noninterest-bearing transaction accounts, including Interest on Lawyer Trust (IOLTA) Accounts, will no longer receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). As of January 1, 2013, all depositor accounts at any insured depository institution, including all noninterest-bearing accounts, will be insured by the FDIC up to the standard maximum insurance amount of $250,000, for each ownership category. For more information about temporary FDIC insurance coverage of transaction accounts, visit https://www.fdic.gov/.