Learn More
Q & A: Answers to Your Questions About FDIC Insurance
Q: How can a depositor tell whether a bank is insured?
A: Insured banks must display an official sign at each teller
window or station where deposits are regularly received. To find out
if a particular bank or savings association has FDIC insurance coverage,
contact the FDIC.
Q: Whose deposits does the FDIC insure?
A: Any person or entity can have FDIC deposit insurance in
an insured bank located in the United States. A person does not have
to be a U.S. citizen or resident to have deposits insured by the FDIC.
Q: Does FDIC insurance protect creditors and shareholders?
A: FDIC insurance only protects depositors, although some depositors
may also be creditors or shareholders of an insured bank.
Q: Does the FDIC insure all investments sold by an
insured bank?
A: The FDIC does not insure money invested in stocks, bonds,
mutual funds, life insurance policies, annuities, or municipal securities,
even if they were bought from an insured bank.
The FDIC also does not insure U.S. Treasury bills, bonds, or notes,
but those are backed by the full faith and credit of the United States
government.
Q: Does the FDIC insure an unpaid cashier's check,
interest check, money order, or expense check issued by an insured
bank?
A: If a depositor holds one or more of these items from an
insured bank, and the insured bank fails before the item is cashed
elsewhere, the FDIC will add the item to any other deposits held in
the same ownership category at the same insured bank. For example,
an outstanding interest check payable to a depositor will be added
to their other single ownership accounts, if any, and the total insured
up to $250,000.
Q: Does the FDIC insure safe deposit boxes if a bank
fails?
A: The FDIC does not insure safe deposit boxes or their contents.
In the event of a bank failure, the FDIC in most cases arranges for
an acquiring bank to take over the failed bank's offices, including
locations with safe deposit boxes. If no acquirer is found, boxholders
would be sent instructions for removing the contents of their boxes.
Q: How does the FDIC determine ownership of deposits?
A: The FDIC presumes that deposits are owned as shown on the
deposit account records of the insured bank. The deposit account records
of an insured bank include account ledgers, signature cards, certificates
of deposit, passbooks, and certain computer records. Account statements,
deposit slips and cancelled checks are not considered deposit account
records for purposes of determining deposit insurance coverage.
Q: Can I increase my insurance coverage by depositing
funds with different insured banks?
A: Deposits with each FDIC-insured bank are insured separately
from any deposits at another insured bank. If an insured bank has
branch offices, the main office and all branch offices are considered
one insured bank - a depositor cannot increase insurance coverage
by placing deposits at different branches of the same insured bank.
Similarly, deposits held with the Internet division of an insured
bank are considered the same as deposits with the "brick and
mortar" part of the bank, even if the Internet division uses
a different name. If two banks are affiliated, such as having a common
holding company, but are separately chartered (indicated by having
two different FDIC Certificate numbers), deposits in each bank would
be separately insured.
Q: Can I increase my insurance coverage by dividing
my deposits into several different accounts at the same insured bank?
A: Deposit insurance coverage can be increased only if the
accounts are held in different categories of ownership. These categories
include single accounts, retirement accounts, joint accounts and revocable
trust accounts.
Q: Can I increase my coverage for my joint accounts by using a
different co-owner's Social Security number on each account or changing
the way the owners' names are listed on the accounts?
A: Using different Social Security numbers, rearranging the
order of names listed on accounts, or substituting "and"
for "or" in joint account titles does not affect the amount
of insurance coverage available to co-owners of joint accounts.
For more information about FDIC insurance, click here.
- Banking Navigation
