What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent government agency that provides deposit insurance to protect depositors in case their bank fails.
What is FDIC deposit insurance?
The FDIC deposit insurance system guarantees depositors that their deposits are safe.
You automatically have deposit insurance if you have a deposit account at an FDIC-insured financial institution.
The protection is currently up to at least $250,000 for each customer in each FDIC-insured bank and for each type of account ownership category.
How much deposit insurance coverage do I qualify for?
As mentioned above, deposits are insured up to at least $250,000 for the funds in each ownership category.
However, you can have over $250,000 deposit coverage at one FDIC-insured bank if the funds are insured in different ownership categories.
For example, if you have both a personal account and a joint account with someone else, those accounts may be insured separately up to the $250,000 limit for each account.
The FDIC determines your coverage based on the types of accounts you have and how they are set up. The Electronic Deposit Insurance Estimator (EDIE) can tell you how the insurance rules apply to your accounts.
How can I know if a bank is FDIC-insured?
Finding out if a bank is FDIC-insured is a simple process. You can verify if a bank is FDIC-insured in a few different ways:
- Check the bank’s website: Most FDIC-insured banks will have the FDIC logo on their website, along with a statement indicating that they are a member of the FDIC.
- Use the FDIC’s BankFind tool: The FDIC offers a tool called BankFind, which allows you to search for information about FDIC-insured banks. You can search for a specific bank by name or location.
- Ask the bank directly: If you’re still unsure whether a bank is FDIC-insured, you can always ask the bank directly. They will provide you with information about their FDIC deposit insurance status and answer any questions.
Is every financial product at a bank protected by the FDIC?
No, the FDIC does not cover every financial product at a bank. FDIC insurance only covers certain deposit accounts, including:
- Checking accounts
- Money market accounts
- Savings accounts
- Certificates of deposit (CDs)
Other financial products offered by banks, such as stocks, bonds, mutual funds, annuities, and life insurance policies, are not covered by FDIC insurance in the case of a bank failure. These types of investments are subject to market risk and may lose value.
You can access a full list of the deposit accounts covered by FDIC here.
What’s the difference between “deposit products” and “ownership categories?”
Understanding deposit products and ownership categories is important to ensure all your deposits are fully insured.
Deposit products are the different types of bank accounts that are insured by the FDIC, like checking and savings accounts. Ownership categories refer to how the accounts are legally owned, and this determines how much insurance coverage you have.
How does the FDIC insure prepaid cards?
The FDIC offers insurance for prepaid cards that meet certain requirements, such as having the funds deposited in a bank.
However, it’s important to understand that this insurance only protects you in the case of a failed bank. It does not cover things like losing your card or if the company that issued it goes bankrupt.
Talk to Patterson State Bank
The banking system plays a crucial role in our daily lives, and it’s essential to feel secure knowing that your hard-earned money is safe and protected.
At Patterson State Bank, we understand that you may have further questions or concerns about your coverage, and we’re here to help.
Our knowledgeable bankers can assist you and provide any information you need to feel secure in your banking relationship with us.
Visit your nearest PSB location or call 985-395-6131 to speak to a PSB banker at any of our financial institutions today.