FDIC Insurance

FAQ's

What is the FDIC?

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

What does the FDIC do?

FDIC deposit insurance protects bank customers in the event that an FDIC-insured depository institution fails. Bank customers don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

How do I know if my bank is FDIC insured?

To determine if a bank is FDIC-insured, you can ask a bank representative, look for the FDIC sign at your bank, or you can use the FDIC's BankFind tool. BankFind allows you to access detailed information about all FDIC-insured institutions, including branch locations, the bank's official website, the current operating status of your bank, and the regulator to contact for additional information and assistance. You can also submit a request using the FDIC Information and Support Center or call 1-877-275-3342.

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How much deposit insurance coverage do I qualify for?

The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category.

What is the difference between deposit products and ownership categories?

Deposit products include checking accounts, savings accounts, CDs and MMDAs and are insured by the FDIC. The amount of FDIC insurance coverage you may be entitled to, depends on the ownership category. This generally means the manner in which you hold your funds. Some examples of FDIC ownership categories include single accounts, certain retirement accounts, employee benefit plan accounts, joint accounts, trust accounts, business accounts as well as government accounts.

Is every financial product at a bank covered by the FDIC?

No. FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs).

See “Are My Accounts Insured by the FDIC?” for a full list of the types of deposit products that are covered by FDIC insurance and the amount of deposit insurance coverage that may be available under FDIC’s different ownership categories.

Investment products that are not deposits, such as mutual funds, annuities, life insurance policies and stocks and bonds, are not covered by FDIC deposit insurance. See “Financial Products that Are Not Insured by the FDIC” for more information about uninsured financial products.

Can I check to see if my accounts are fully covered?

Yes. You can get detailed information about your specific deposit insurance coverage by accessing the FDIC's Electronic Deposit Insurance Estimator (EDIE) and entering information about your accounts. You can also visit the FDIC Information and Support Center to submit a request for deposit insurance coverage information, or you can also call the FDIC at 1-877-ASK-FDIC (1-877-275-3342) and an FDIC deposit insurance specialist will help you calculate your deposit insurance coverage.

What is the FDIC's Electronic Deposit Insurance Estimator (EDIE)?

The FDIC's Electronic Deposit Insurance Estimator (EDIE) is an online tool that helps bank depositors determine the insurance coverage for their accounts. The FDIC's Electronic Deposit Insurance Estimator (EDIE) allows depositors to input information about their accounts and get an estimate of their deposit insurance coverage.

Is the FDIC's Electronic Deposit Insurance Estimator (EDIE) free?

Yes, the FDIC's Electronic Deposit Insurance Estimator (EDIE) is completely free to use.

What information do I need to use the FDIC's Electronic Deposit Insurance Estimator (EDIE)?

To use the FDIC's Electronic Deposit Insurance Estimator (EDIE), you will need to provide information about your account type, account balance, number of account owners, and other factors.

How accurate is the FDIC's Electronic Deposit Insurance Estimator (EDIE)?

The FDIC's Electronic Deposit Insurance Estimator (EDIE) provides accurate estimates of deposit insurance coverage, based on the information you provide. However, the estimates are subject to change based on changes in the FDIC's rules and regulations.

Are Sole Proprietors insured?

Sole Proprietors have insurance coverage up to $250,000. Adding beneficiaries to a sole proprietorship account does not add additional FDIC insurance coverage.

Do IOLTA accounts qualify for FDIC insurance?

Yes. The client (owner) of the funds that are held within the IOLTA account is insured up to $250,000, per financial institution. There may be additional paperwork required between the law firm and the client, and they should follow the state law guidelines.

How does coverage work for a Limited Liability Company (LLC) if the LLC is a single member LLC using the member’s social security number as the EIN?

It's advisable to contact the FDIC or the bank directly to discuss their specific situation and ensure there is a clear understanding of the applicable FDIC coverage for their single-member LLC and personal accounts.

Are Trusts insured?

A revocable trust account (including living trusts and informal revocable trusts commonly referred to as payable on death (POD) accounts) may be insured up to $250,000 per owner, per unique beneficiaries.

An irrevocable trust account must meet certain criteria to be eligible for FDIC deposit insurance. See “Revocable and Irrevocable Trust Accounts” on the FDIC website for more information about how deposit insurance is calculated for these types of accounts.