What does FDIC-Insured mean?
Key takeaways:
- The FDIC insures deposit accounts (like checking, savings, money market accounts and CDs) at participating banks, covering up to $250,000 per depositor, per bank, per ownership category.
- FDIC insurance does not protect investments (like stocks, bonds, crypto), safe deposit box contents, or balances above $250,000 at a single bank under the same ownership.
- Banks, not customers, pay for this protection. If an FDIC-insured bank fails, the FDIC typically ensures you regain access to your insured funds by the next business day or within a few days.
You scroll through your banking app, check your balance, maybe use Zelle® to send money to a friend — and there it is: the FDIC logo. It’s easy to overlook, but that tiny acronym provides robust protections for your hard-earned deposits. Most people don’t think twice about it, but if these four letters are absent from a bank’s mobile app and website, it could mean serious trouble if the bank faces financial difficulties.
What does FDIC stand for?
FDIC stands for the Federal Deposit Insurance Corporation link opens in a new window. This government agency protects your cash if your bank closes its doors or doesn’t have enough money on hand to pay bills or cover withdrawals.
How FDIC insurance works
FDIC insurance is the federal safety net that guarantees the cash you keep in checking, savings and other deposit accounts at participating banks. In practical terms, if an FDIC insured bank ever closes its doors, the government steps in and repays up to $250,000 per depositor, per bank, and per ownership category. The banks themselves cover this protection by paying premiums to the FDIC, so you never see any charges for this coverage on your statements.
FDIC coverage limits
While FDIC insurance safeguards everyday accounts like checking, savings, money market and CDs, some accounts and services remain uninsured.
| Not covered by FDIC insurance | Details |
|---|---|
| Certain non-deposit products | FDIC insurance does NOT cover investments such as stocks, bonds, mutual funds, annuities, life insurance policies and crypto. |
| Contents of a safe deposit box | The FDIC does not insure the contents of safe deposit boxes, even if the box is located at an FDIC-insured bank. |
| Balances exceeding $250,000 at one bank | If you have more than $250,000 in total across all your deposit accounts at a single bank under your name, anything over that amount is not insured. |
You can increase the $250,000 coverage limit by opening multiple accounts at the same bank but only if they’re in different ownership categories.
FDIC payout timelines
When a bank encounters financial distress, the FDIC immediately steps in, making sure you can access insured cash by the next business day. Even in cases where they need to double-check certain details, they have a solid track record of getting people their money within a few days, although complicated situations might take a few months to sort out. This quick response time is crucial, because it means you won’t be left without access to your funds if your bank runs into trouble.
How to check your FDIC insurance status
The rules around FDIC insurance aren’t set in stone. For example, last year the FDIC made major updates to trust account link opens in a new window protections by combining different types of trusts and setting new coverage limits. Such changes might directly affect how much of your money is protected, especially if you’re dealing with an inheritance or setting up accounts that list beneficiaries.
You can confirm whether a physical or online bank is FDIC-insured by calling the FDIC at 877-275-3342 or by using the FDIC’s BankFind tool link opens in a new window.
In a world of digital and financial what-ifs, that tiny badge provides assurance that your deposits are protected. Learn more about how deposit insurance works by visiting the FDIC website link opens in a new window.
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