Presented by Nicole Cannone Wegman, CFP ®, Director of Financial Planning
In this Let’s Get Personal post we'll explore what FDIC limits are, how they work, and what steps you can take to ensure that your bank deposits are protected.
With recent news about bank failures, it's natural to be concerned about the safety of your deposits. But did you know that the FDIC protects any money you have deposited in insured bank accounts up to $250,000 per account holder in the unlikely event of an insured bank failure?
What are FDIC limits?
The FDIC is an independent U.S. government agency that provides deposit insurance to protect depositors in the event that an insured bank or savings institution fails. FDIC limits refer to the amount of coverage that depositors are entitled to receive if their bank fails.
Currently, the FDIC insures deposits up to $250,000 per depositor, per insured bank. This means that if you have less than $250,000 in a single insured bank, your deposits are fully covered. If you have more than $250,000 in one account, the excess amount may not be insured. However, there are ways to increase your coverage, such as opening additional accounts or using different ownership categories (more on that later).