Building financial peace of mind: Understanding FDIC insurance
When it comes to managing your money, knowing it’s protected can provide valuable peace of mind. That’s where FDIC insurance comes in. Understanding what FDIC insurance is, what it covers, and how much protection is available can help consumers make informed decisions about where they keep their funds.
Understanding FDIC insurance
When choosing to keep your money, safety is often a top priority. One of the key protections available to consumers is FDIC deposit insurance. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects deposits held at FDIC-insured banks if a bank ever fails. Understanding how FDIC insurance works can help consumers feel more confident about managing their money.
What does FDIC insurance cover?
FDIC insurance covers several common deposit accounts, including checking accounts, savings accounts, money market deposit accounts, and certificates of deposits (CDs).
However, FDIC insurance does not cover investments such as stocks, bonds, mutual funds, annuities, or cryptocurrency.
How much coverage is available?
The standard FDIC insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. In some situations, consumers may qualify for additional coverage through different ownership categories, such as joint accounts or certain retirement accounts.
How to verify FDIC coverage
Consumers can confirm that a financial institution is FDIC-insured by the FDIC’s BankFind tool or by looking for FDIC signage at the institution. Taking a few minutes to understand your coverage can help you make informed decisions about where to keep your money.
The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.
