What Types of Bank Accounts Are Insured by the FDIC?


Quick Answer

The Federal Deposit Insurance Corporation insures all deposit accounts at any FDIC insured financial institution, including checking, savings, negotiable order of withdrawal and money market deposit accounts. Certificates of deposit, cashier's checks and bank issued money orders are covered as well, according to the FDIC.

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What Types of Bank Accounts Are Insured by the FDIC?
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Full Answer

In 2010, the federal government authorized a permanent increase in the total amount of coverage available to each depositor to $250,000 per bank, as Bankrate reports. Some account holders are insured for more than $250,000, but this depends on the ownership categories of their accounts, explains Wells Fargo.

Ownership categories include single and joint accounts, revocable and irrevocable trusts, employee benefit plans, some retirement plans, business accounts, and government accounts. Depositors are insured up to $250,000 for all accounts in each category, according to Wells Fargo. For example, a husband and wife's joint checking account and individual savings accounts qualify for up to $1 million in insurance coverage, while their individual living trusts are insured up to an $250,000 per account.

The Federal Deposit Insurance Corporation does not protect nondeposit investments, such as mutual funds, stocks, bonds, annuities and life insurance policies, according to the FDIC. An FDIC insured banking center can provide information on which accounts are protected under its coverage. Individuals with multiple high-dollar accounts through one financial institution should contact the FDIC for personalized advice and assistance, as Bankrate recommends.

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