The Federal Deposit Insurance Corporation (FDIC) manages the insurance fund that protects bank deposits. Although the FDIC is an agency of the federal government, member banks fund the insurance fund through assessments.
- The limit on insurance is $250,000 per depositor. An individual may be covered for more than $250,000 if the accounts are in different ownership categories. See the website in the reference section for a full breakdown of ownership categories.
- The FDIC insurance fund only covers money in deposit accounts like checking, savings, money market deposit accounts and certificates of deposits (CDs).
- Banks sell other products that are not covered. These include stocks, corporate bonds, municipal bonds, mutual funds and annuities and other insurance products. Also, if the bank where you have your account issues debt in its name, these securities are not covered.
- On Jan. 1, 2014, the standard deposit limit will return to $100,000 except that the limit on some individual retirement accounts will remain at $250,000.
- The FDIC insurance fund is funded by assessments made on banks that are members of the FDIC. The current assessment schedule categorizes banks into four levels based on a risk level determined by the FDIC. The annual bank assessment ranges from 7 cents to 77.5 cents per $100 in deposits.
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