Fdic protects how much money

When this happens, the bank goes belly up, putting its customers' assets in jeopardy. But thanks to FDIC insurance, you can receive reimbursement up to the maximum amount so your funds aren't lost for good. But before we dive into insurance limits, here are the basics about FDIC insurance you need to know.

The FDIC covers many common deposit accounts, but it doesn't insure investment accounts. Here are the following types of covered accounts:. You can also see that trusts, benefit plans and other accounts factor in whether there are beneficiaries, participants or custodians connected to it. Here's a breakdown of the FDIC coverage broken up by type of account owner. Most checking accounts and savings accounts provided by major banks offer the standard FDIC insurance.

Can I request a payoff for my financed vehicle online? How do I change my vehicle account contact information? FDIC Insurance. Open a single account for each adult family member.

Pool your money into joint accounts. Save for your child. Add beneficiaries to your accounts. Keep in Mind. Which username did you forget? Auto Financing.

Bank or Invest. Forgot your bank or invest username? There are bank networks that can do that for you. The table below shows how different account ownership categories can affect your deposit insurance coverage. Depositors do not need to file insurance claims to recoup their deposits. Nor do they need to apply for deposit insurance when they open up a bank account at an FDIC-insured institution.

When a bank fails, the FDIC pays depositors by giving them an account at another insured bank in the amount equal to what they had at the failed bank, up to the insurance limits. Or, it simply issues the depositor a check. This usually happens the next business day or within a few days. In some cases, the FDIC has to review an account to determine how much is covered before it reimburses the account holder.

It can take a few years to recover deposits that exceed the insurance limit. Funds that exceed insurance limits are repaid on a cents-on-the-dollar basis. How We Make Money. Matthew Goldberg. Written by. Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. Edited By Mary Wisniewski.

Edited by. Mary Wisniewski. Mary Wisniewski is a banking editor for Bankrate. She oversees editorial coverage of savings and mobile banking articles as well as personal finance courses. Reviewed By Robert R. Reviewed by. Robert R. Johnson, Ph. Share this page. Bankrate Logo Why you can trust Bankrate. Bankrate Logo Editorial Integrity. Key Principles We value your trust.