The entire purpose of the FDIC is to keep your money safe and secure. But making sure your bank carries FDIC insurance is only the first step you need to take. You must also understand how to arrange your accounts and maximize the amount of FDIC insurance coverage you can receive. To help you out, we’ve compiled some of the most frequently asked questions about FDIC insurance and provided some helpful guidelines to follow when setting up your accounts.
What is FDIC Insurance?
FDIC insurance is federal protection for your deposit accounts. Basically, if anything should ever happen to your bank and they cannot pay out your money, the FDIC steps in and reimburses you up to $250,000 per account, per ownership type.
Which First Mid accounts are covered under this insurance?
All personal and business checking, savings and money market accounts are covered by FDIC insurance. Individual Retirement Accounts (IRAs) and Living Trusts are also insured by FDIC.
What type of accounts are NOT covered by FDIC?
Investments that are not bank deposits – mutual funds, stocks, bonds, life insurance and annuities – are not covered under FDIC insurance. This is true even if they were purchased through an FDIC insured institution.
How much of my money will be covered by FDIC?
The FDIC insures up to $250,000 per single account. Joint accounts are insured up to $500,000 ($250,000 for each individual on the account). That means as a couple, you could be insured for up to a total of $1,000,000 at the same bank.
Does it matter if I have multiple accounts?
The maximum amount of coverage is the same regardless of the number of accounts you have. Individual accounts are covered up to $250,000 total. Joint accounts are covered up to $500,000 total, plus $250,000 for each individual’s accounts.
What if I have accounts at different banks?
Each bank has it’s own FDIC coverage. Your accounts are covered up to $500,000 total for joint accounts, plus $250,000 for each individual’s accounts at each bank you have accounts. Please note, this means different institutions not different branches, even if the branches are in different states.
For more information about FDIC insurance visit http://www.fdic.gov.