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). There is no need for depositors to apply for FDIC insurance or to request it; coverage is automatic. 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.

To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank. The chart shows only the most common ownership categories, and assumes all FDIC requirements are met.

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
Individual retirement accounts (IRAs) and certain other retirement accounts $250,000 per owner
Trust accounts $250,000 per owner per beneficiary subject to specific limitations and requirements
Corporation, partnership and unincorporated association accounts $250,000 per corporation, partnership or unincorporated association
Employee benefit plan accounts $250,000 for the non-contingent, ascertainable interest of each participant
Government accounts $250,000 per official custodian
Non-interest bearing transaction accounts Unlimited*


All funds in a “noninterest-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 “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 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.