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Released: August 21, 2008

Help Desk FAQ

How much coverage does the FDIC provide?

On Oct. 3, Congress passed legislation that would temporarily allow the FDIC to insure up to $250,000 per person in non-retirement bank deposits. The change is effective through Dec. 31, 2009, and there is the chance that Congress may permanently increase coverage levels.

The basic insurance coverage is $250,000 per depositor per insured institution, but you may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different "ownership categories." For example, your deposits in:

• Single accounts (in one name only) are insured up to $250,000;
• Joint accounts (for two or more people) are protected to $250,000 per owner;
• IRAs and certain other retirement accounts at banks are covered up to $250,000;
• Trust accounts can be protected up to $250,000 for each named beneficiary provided that FDIC requirements are met.

Because of the separate insurance coverage for deposits in different categories, a couple could have up to $1.5 million in deposit insurance coverage in one FDIC-insured institution if they had two individual accounts, a joint account and two trust accounts naming each other as beneficiary.

For more information, see the FDIC publication Your Insured Deposits.