The Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is an independent federal agency created in 1933 to promote public confidence and stability in the nation’s banking system. FDIC deposit insurance is backed by the full faith and credit of the United States government. This means that the resources of the United States government stand behind FDIC-insured depositors.
How FDIC Insurance Works
Insurance is automatic whenever a customer opens any type of deposit account at an FDIC-insured bank or savings association, including but not limited to: checking, negotiable order of withdrawal (NOW), savings accounts, money market deposit accounts, and certificates of deposit (CDs). Insured banks and savings associations pay the FDIC for deposit insurance coverage. Deposit balances are insured up to the maximum amount permitted by law. The FDIC does not insure investments in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if a customer purchases them from an FDIC-insured bank or savings association.
Permanent Increase in Standard Maximum Deposit Insurance Amount
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raised the standard maximum deposit insurance amount (SMDIA) to $250,000. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category. For additional information, go to www.fdic.gov/deposit/deposits or call toll free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.
Temporary Unlimited FDIC Insurance Coverage For Transaction Accounts
In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, all funds in "noninterest-bearing transaction accounts" are insured in full by the FDIC from December 31, 2010, through December 31, 2012. This unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.
The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest of Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.
After December 31, 2012, funds in noninterest-bearing transaction accounts will be insured under the FDIC's general deposit insurance rules, subject to the Standard Maximum Deposit Insurance Amount of $250,000.
For additional information on the FDIC, please visit FDIC.gov.
For More Information About FDIC Deposit Insurance Coverage
Your insurance coverage using the FDIC’s Electronic Deposit Insurance Estimator at www.fdic.gov/edie.
Your Insured Deposits and other deposit insurance information at: www.fdic.gov/deposit/deposits.
Toll free 1-877-ASK-FDIC (1-877-275-3342) from 8 am until 8 pm (Eastern Time) Monday through Friday.
Hearing Impaired Line: 1-800-925-4618