The FDIC is an independent agency of the U.S. government that insures your deposits and protects you from losing money if your FDIC-insured financial institution fails.
FDIC insurance is backed by the full faith and credit of the United States government. It covers deposit accounts, like checking, savings, and certificates of deposits (CDs).
Since the creation of the FDIC in 1933, not one penny of FDIC-insured deposits has been lost.
Your FDIC-insured deposits are insured for up to $250,000 per depositor, per insured bank, for each ownership category. So, if you have $250,000 or less in all of your deposit accounts at the same insured bank or savings association, your deposits are fully insured.
Let’s break that down. Say you have a checking account with $1,000 and a savings account with $2,000 at the same bank. All your money would be covered by FDIC insurance because your total deposits as a single depositor don’t exceed $250,000.
But if you have $75,000 in a checking account and $200,000 in savings at the same bank, the total exceeds the maximum insurance coverage of $250,000 for a single depositor. You wouldn’t be covered for the additional $25,000 if the bank fails.
You can use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) calculator to see how much coverage you can get for each depositor, within each depositor category.