Expanded FDIC Deposit Insurance Protection › Preferred Bank (2024)

FAQs

Can I have more than $250000 of deposit insurance coverage at one FDIC-insured bank? ›

Q: Can I have more than $250,000 of deposit insurance coverage at one FDIC-insured bank? A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled.

Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.

The standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category. This means that by having accounts in different ownership categories, like single accounts and joint accounts, you can get more than $250,000 in coverage.

For example, if the same two co-owners jointly own both a $350,000 CD and a $150,000 savings account at the same insured bank, the two accounts would be added together and insured up to $500,000, providing up to $250,000 in insurance coverage for each co-owner.

The FDIC adds together the balances in all Single Accounts owned by the same person at the same bank and insures the total up to $250,000.

Consider depositing funds in multiple banks and accounts to receive FDIC coverage. Diversify your bank accounts by investing money into a variety of savings accounts, such as a high-yield savings account, money market accounts (MMA) or a Certificates of Deposit (CDs) account.

Wealthfront also offers some of the industry's highest FDIC protection. Other banks and fintechs offering competitive FDIC insurance include Betterment, Bluevine, SoFi and Ameris Bank, and like Wealthfront, they spread your funds among partnering FDIC-insured banks.

Do CDs count toward the FDIC limit? ›

CDs are federally insured by the FDIC. The FDIC insures deposit accounts up to $250,000 per depositor, per FDIC-insured bank and per ownership category. This includes savings and checking accounts as well as money market accounts and CDs.

Bottom line. Any individual or entity that has more than $250,000 in deposits at an FDIC-insured bank should see to it that all monies are federally insured. It's not only diligent savers and high-net-worth individuals who might need extra FDIC coverage.

NOTE ON BENEFICIARIES: WHILE SOME SELF-DIRECTED RETIREMENT ACCOUNTS, LIKE IRAS, PERMIT THE OWNER TO NAME ONE OR MORE BENEFICIARIES, THE EXISTENCE OF BENEFICIARIES DOES NOT INCREASE THE AVAILABLE INSURANCE COVERAGE.

I think customer might be confused between FDIC member bank (FDIC insured) and Federal Reserve non-member bank (nothing to do with FDIC or with insurance). The FDIC's own advertising regulations specify that an FDIC insured bank can use the phrase "Member FDIC" in ads to indicate that deposits are insured.

The FDIC provides separate insurance coverage for a depositor's funds at the same insured bank, if the deposits are held in different ownership categories. To qualify for this expanded coverage, the requirements for insurance coverage in each ownership category must be met.

The PDIC provides a maximum deposit insurance coverage of PhP500,000 per depositor per bank. It covers all types of bank deposits in banks.

For example, a two person joint account with no beneficiaries has $500,000 in coverage. This coverage is separate from and in addition to the coverage available for other accounts such as individual accounts with no beneficiaries and retirement accounts.

Understanding Your Coverage Limits

FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category.