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Do You Have the Facts on FDIC Insurance?

Member FDIC. You've seen that phrase hundreds of times, but have you ever stopped and asked yourself what it really means?

The Federal Deposit Insurance Corporation (FDIC), an independent agency of the federal government, protects against the loss of insured deposits in the event an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States Government.

If your insured bank fails, FDIC insurance will cover your deposit accounts, dollar for dollar, including principal and any accrued interest, up to the insurance limit. Since the start of the FDIC in 1934, no depositor has ever lost a penny of insured deposits.

Deposits at FDIC-insured institutions are insured to at least $250,000 per depositor for each account ownership category. Learn more at: or

Myths About FDIC Insurance
Myth #1: The most FDIC insurance coverage a consumer can have is $250,000.
The reality is that balances held in different ownership categories of accounts at an FDIC-insured institution may be separately insured. So, you may qualify for more than $250,000 in coverage.

Myth #2: Any product available through a bank, or a subsidiary of a bank, is insured by the FDIC.
The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities. And the FDIC does not insure U.S. Treasury bills, bonds, or notes; these instruments are already backed by the United States Treasury.

Myth #3: Each beneficiary named on an Individual Retirement Account (IRA) increases the FDIC insurance coverage.
The number of beneficiaries on an IRA does not affect insurance coverage. Under the FDIC's rules, up to $250,000 in insurance is provided for the total deposits a consumer has in all retirement accounts at one FDIC-insured institution. This includes various accounts such as traditional or Roth IRAs.

Myth #4: FDIC insurance coverage on revocable trust accounts is limited to accounts set up with certain beneficiaries.
No longer true. On September 26, 2008, the FDIC simplified its rules for the insurance coverage of revocable trust accounts. The new rules eliminated the concept of qualifying beneficiary, so that coverage is now based on the naming of virtually any beneficiary. This change provides at least as much insurance coverage as before.

Questions About How Much FDIC Insurance Coverage You Have?
Take advantage of the FDIC's Electronic Deposit Insurance Estimator (EDIE) to calculate the FDIC insurance available for your personal and/or business deposits at:

For additional information relating to FDIC insurance coverage, call the FDIC at
1-877-275-3342, or visit its website at
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