If FDIC insurance coverage is important to you, simply make sure that a bank is FDIC-insured prior to opening an account. Coverage is automatic whenever you open an account with and FDIC-insured bank. Do I need to apply for FDIC insurance?Īs a bank customer, it is not necessary to apply for FDIC insurance coverage. Another way you can determine if your bank is FDIC-insured is by using the FDIC’s BankFind tool. Simply look for a “Member FDIC” sign at any bank location, on your bank’s website, or by asking any representative of your bank. It’s easy to determine if your bank is FDIC-insured. How do I know if my bank is FDIC-insured? These premiums are then pooled and used to protect the depositors of insured banks should a bank failure occur. What does it mean for a bank to be FDIC-insured?Ī bank becomes FDIC-insured (or Member FDIC) by applying for FDIC insurance coverage and paying premiums, much like an individual would pay for health or auto insurance.
Since the FDIC’s inception, no depositor has lost a single penny of their FDIC-insured balances. FDIC insurance is backed by the full faith and credit of the United States government. It was established in 1933 after the Great Depression when thousands of banks went out of business.
It protects depositors (bank customers) against the loss of their insured deposits (balances in savings accounts, checking accounts, etc.) in the unlikely event that an FDIC-insured bank fails. The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government.
While everyone’s situation is unique when it comes to where you bank and the types of accounts you hold, this article explains the important things you should understand about FDIC insurance including what it is, what the coverage limits are, and how they could apply to you. What is FDIC Insurance & Are My Accounts Covered?Īfter hearing about recent and unexpected bank closures by the FDIC via the news and social media, you may be asking yourself what the FDIC is and if the money you keep in your bank is safe.
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