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FDIC Insurance Coverage


The FDIC – short for the Federal Deposit Insurance Corporation – is an independent agency of the United States government. The FDIC protects depositors against the loss of their deposits if an insured bank fails.

FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC began operation in 1934, no depositor has ever lost a penny of FDIC-insured deposits.

What does FDIC deposit insurance cover?

FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA) or time deposit such as a certificate of deposit (CD). FDIC protection also applies to bank deposits in retirement accounts such as an IRA.

FDIC insurance covers depositors’ accounts dollar-for-dollar, including principal and any accrued interest, up to the insurance limit.

The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank. These type of investments in a retirement account are not FDIC insured.

The FDIC does not insure safe deposit boxes or their contents.

The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government.

How much insurance coverage does the FDIC provide?

The standard deposit insurance amount is $250,000 per depositor for each account ownership category.

The FDIC provides separate insurance coverage for funds depositors may have in different categories of legal ownership. The FDIC refers to these different categories as “ownership categories.” This means that a customer who has multiple deposits may qualify for more than $250,000 in insurance coverage, if the customer’s accounts are deposited in different ownership categories and the requirements for each ownership category are met.

Make an appointment today to visit with an American Federal Banker to insure your accounts are properly set up to maximize your FDIC insurance coverage.