Banks That Are FDIC Insured: What You Should Know

The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency established in 1933 during the Great Depression. Its formation aimed to restore public trust in the nation’s banking system following widespread bank failures. The FDIC insures deposits, protecting account holders if an insured bank fails. This crucial function helps ensure stability and confidence in the financial sector.

Deposit Insurance Coverage

FDIC insurance protects deposit accounts at insured banks. The standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category. This covers funds in common account types like checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs) up to this limit. Coverage applies to the principal and any accrued interest up to the $250,000 threshold.

Not all financial products are covered by FDIC insurance. Investments such as stocks, bonds, mutual funds, and annuities are not insured. The contents of safe deposit boxes are not protected. Cryptocurrencies and other digital assets are also outside the scope of FDIC deposit insurance.

Confirming Your Bank’s Status

Verifying whether your bank is FDIC-insured is a straightforward process. Most U.S. banks are FDIC-insured, but confirming this status is simple. One common indicator is the official FDIC sign, often found at bank branches near teller windows or entrances. Banks typically feature the FDIC logo prominently on their websites.

For confirmation, the FDIC provides an online tool called BankFind. This tool allows consumers to search for a bank’s insurance status directly on the FDIC’s website. To use BankFind, enter the bank’s name or its certificate number. The search results will confirm the bank’s FDIC insurance status.

Expanding Your Coverage

While the standard FDIC insurance limit is $250,000 per depositor, per insured bank, you can secure coverage for amounts exceeding this limit at a single institution. This is achieved by holding funds in different ownership categories. The $250,000 limit applies to each distinct ownership category, not simply to each individual.

For example, a single account, a joint account, and certain retirement accounts (such as IRAs or 401(k)s) are distinct categories. Revocable trust accounts also represent a separate ownership category. By distributing funds across these different categories within the same insured bank, depositors can significantly increase their total insured amount beyond the base $250,000.

The Bank Failure Process

In the rare event that an FDIC-insured bank fails, the FDIC acts swiftly to protect depositors. The primary goal is to ensure insured deposits are accessible to customers with minimal disruption. Within a few business days of a bank’s closure, the FDIC takes action to make funds available.

Depositors generally do not need to file a claim to recover their insured funds. The FDIC manages this process, often by transferring accounts to a healthy, acquiring bank or by issuing checks directly to depositors for the insured amounts. Since 1933, no depositor has lost an insured deposit due to a bank failure.