How safe are bank deposits insured by the FDIC?

Bank customers don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

Is the FDIC a good thing?

The FDIC’s Been Protecting Deposits Since 1933 It insures checking accounts, savings accounts, money market deposit accounts and certificates of deposit. (More on this in a minute.) The FDIC was created in 1933 to help foster more trust between consumers and financial institutions.

Can you increase FDIC insurance?

You can increase your FDIC insurance coverage by creating a payable-on-death account (also known as an informal trust, in-trust-for, or Totten Trust account) or titling an account in the name of a formal revocable trust. For these account types, each unique beneficiary adds $250,000 of coverage up to FDIC limits.

Is your money stuck for a set time with a traditional savings account?

Money in a traditional savings account is not immediately accessible with a check or debit card. That means you don’t use it for your daily cappuccino or occasional shopping trip. With regular contributions, the money in this account will grow over time, depending on your interest rate. Your money is safe.

How much deposit insurance does the FDIC provide?

The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank.

How can I insure my excess bank deposits?

There are a few ways to insure excess bank deposits that exceed the $250,000 limit. Here are three options worth considering. 1. Split Your Funds Across Multiple Banks. Remember, FDIC coverage is per depositor, per bank. So you can get two, three, or four times the FDIC coverage by simply opening multiple accounts.

How do I get FDIC coverage for multiple banks?

1. Split Your Funds Across Multiple Banks. Remember, FDIC coverage is per depositor, per bank. So you can get two, three, or four times the FDIC coverage by simply opening multiple accounts. For example, if you have $300,000 in bank deposits, you could open two bank accounts, putting $150,000 in each.

What happened to the FDIC after the 2008 financial crisis?

Due to bank failures during the 2008/2009 bank crisis, the FDIC fund fell to $0.648 billion by August of 2009. Subsequent bank failures almost bankrupted the FDIC, so it demanded a 3 year pre-payment from banks to shore up its capital.