Federal Deposit Insurance Corporation (FDIC)
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that offers protection for funds depositors place in banks that are insured by said agency.
FDIC insurance is backed by the full faith and credit of the U.S. government. Since the FDIC was established in 1933, no depositor has ever lost a penny of FDIC-insured funds.
The FDIC’s basic insurance limit is $250,000 per depositor, per insured bank for each account ownership category.
For more information, you can always contact a Golden State Bank representative to strategize about ways to maximize your insurance, or you may visit FDIC.gov for the most complete information.
Frequently Asked Questions
What Does FDIC Insure?
The FDIC guarantees all traditional types of deposit accounts (checking, savings, money market deposit accounts and CDs) up to $250,000 per depositor and guarantees bank individual retirement accounts up to $250,000 per owner.
How Much Does FDIC Insurance Cover?
The basic insurance coverage by the FDIC is $250,000 per depositor. This coverage limit applies per insured bank for each ownership category. Certain retirement accounts, such as individual retirement accounts, are also insured up to $250,000 per depositor per insured bank. If you have a combined amount of $250,000 or less in all of your deposit account categories at the same insured bank, you do not need to worry about your insurance coverage, as your deposits are fully insured.
I have different types of accounts in a bank, and the combined value exceeds $250,000. Are all of my accounts insured?
For customers with accounts in multiple ownership categories at the same bank, FDIC coverage is based on the titling of the accounts and the category of accounts, not the number of accounts. Categories of ownership include single or individual, joint, trusts, business, certain retirement accounts, etc.
For example, a customer who owns a checking account and a CD titled in his or her own name as a single owner will receive a total of $250,000 of combined coverage for both accounts. But if that same customer also has a joint account (which is a separate category), he or she would be covered for an additional $250,000 for the joint account.