FDIC Insurance Review: How Much of My Deposits are Covered?
Recent news of bank failures has customers on edge. Are their deposits covered by FDIC insurance? Should they move their money to another bank? What happens if there is a failure? It’s a common misconception that $250,000 in each account is covered; this is reported in the press repeatedly. It’s also a misnomer that each customer has $250,000 of coverage in each institution. So what is the right answer? FDIC deposit insurance is calculated by the account ownership category, which is defined by FDIC regulations. There are separate categories for individual accounts, joint accounts, and others. Plus, the trust rules will be changing in a few years.