FDIC Coverage

FDIC/Federal Insurance:

Each depositor is insured to at least $250,000.

Notice of changes in temporary FDIC insurance coverage for transaction accounts 

All funds in a “non interest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary 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 “non interest-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 on 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. 

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

Who is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.

To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts. 

Basic FDIC Deposit Insurance Coverage Limits *

• Single Accounts (owned by one person) - $250,000 per owner

• Joint Accounts (two or more persons) - $250,000 per co-owner

• IRAs and certain other retirement accounts - $250,000 per owner

• Revocable Trust Accounts - $250,000 per owner per beneficiary, subject to specific limitations and requirements

• Non-interest Bearing Transaction Accounts - Unlimited coverage - only at participating FDIC-insured banks and savings associations

*These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

If you have any additional questions, please feel free to contact your local American Bank & Trust branch. 

Tools are available to help understand FDIC insurance...

The tool EIDE (Electronic Deposit Insurance Estimator) at http://www.myfdicinsurance.gov is simple and easy to use.  In just a few steps, EIDE can help you make sure that all of the money you have in bank deposit accounts is 100% FDIC insured.  If your deposits are fully insured, you cannot lose a penny, no matter what, because your deposits are backed by the full faith and credit of the U.S. government.