FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs).
FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities, or municipal securities.
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.
To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs), and trust accounts.
Basic FDIC Deposit Insurance Coverage Limits*
|Single Accounts (owned by one person)||$250,000 per owner**|
|Joint Accounts (two or more persons)||$250,000 per co-owner**|
|IRAs and certain other retirement accounts||$250,000 per owner|
|Trust Accounts||$250,000 per owner per beneficiary subject to specific limitations and requirements**|
* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank, The listing above shows only the most common ownership categorize that apply to individual and family deposits, and assumes that all FDIC requirements are met.
** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2009.