SteveR Loc: Michigan

FDIC coverage is $250,000 per person per banking institution. If there are two individuals on the accounts, they would be covered for up to $500,000. So...if you have over 250K in a bank but only one individual on the account(s), this would be a good time to add a second individual to the account(s), or move money to another institution.

I post this because FDIC coverage is NOT 250K for each account.

David Martin Loc: Cary, NC

FDIC explains coverage differently:
"The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category."
https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/

So 2 people on one checking account would be $500K for that account, 2 people on one checking and one savings account would be $1M for the 2 accounts, but 2 people on 2 checking accounts at the same bank would still be only $500K.

Dannj

That’s how I understand it. The “…each account ownership category” is key.

StanMac Loc: Tennessee

Clarify for me, please. If one has checking, savings, and a CD, in a single bank and all under one Ownership, is each account insured separately or are all insured as one?

Stan

Dannj

As I understand it, one of each type of account per owner is protected. Unfortunately, I don’t come near the limits so it’s not an issue for me😂

Pcolapix Loc: Pensacola, FL

Credit Union Coverage: https://ncua.gov/newsroom/press-release/2020/deposits-are-safe-federally-insured-credit-unions.

SteveR Loc: Michigan

You're incorrect, David, and that's why I made this post. In fact, my wife and I just got back from the BOA to add her to our main savings account to make sure it was covered beyond 250K. The young lady who helped us was under the same impression as you, that other savings accounts would be cover up to 250K per person or 500K if two people were on it. We also have a second savings account that has about 55K in it. To make sure that she was correct, she ran both of our accounts through the FDIC calculator. The first account was was covered up to 500K. The second account was not covered at all because we had maxed out our 500K coverage with the first account. So, splitting our deposits into two accounts did not increase our coverage.

If you have any question at all about this subject, and have over 500K in a bank, go to your bank and have them run an FDIC coverage analysis which would include ALL of your accounts at one time. This is what we had done and it clarified the question not only for us but for the bank staff. If would also help you to know that bank staff is not giving you incorrect information, as they did us.

Properframe Loc: US Virginia

"2 people on one checking and one savings account would be $1M for the 2 accounts"

Checking and savings are in the same category. One coverage. There are 8 categories. You are confusing types of accounts with categories. Joint couple with accounts in all 8 categories could have $2M coverage.

Properframe Loc: US Virginia

Those 3 are all in the same category. One coverage.

SteveR Loc: Michigan

The maximum coverage for 2 people in one bank is $500,000. There is no way to have 2M worth of coverage.

Properframe Loc: US Virginia

That is simply wrong.

Single account 250K
Co owner of joint account 250K
IRA 250K
Beneficiary of Revoc Trust 250K
Corporate,Pship account 250K
Beneficiary of Irrev Trust 250K
Employee Benefit Plan participant 250K
Government account 250K

Eight categories of coverage 2 million.
The only splitting hair issue is that you don't own the govt account - but if you are the Mayor etc responsible for it you better make sure the money is safe.

And I actually mispoke. 2 people with one of each category would have 4 million in coverage.

Toby

Hope you are correct David. This thread is going to be around for a while I think. Looking forward to the correct answer

Properframe Loc: US Virginia

Most people only have 3 of the categories, Single, Joint and IRA. The Trustee is in charge of the 2 types of trusts and the employee benefit account - but it is your money at risk. You may not know where that money is banked.

So the easy method is take a sheet of paper. Make 3 columns. Write Single, Joint, IRA on top of each. Make a copy for every bank you have accounts with.
Write in the balance of each account based on the ownership title (Single,Joint(use 50% of total),IRA).

Wife does her own sheets. Any joint account is deemed owned 50/50 so you cannot take 400 and the wife 100 of a joint account.
Each column has 250K coverage per bank. For each bank see if any COLUMN is over 250K. You have exposure for those that are.

If you own a business entity (corp/pship) it gets 250K coverage.

deVillenueve

It has to do with how the accounts are titled not whether the money is in checking, savings or CDs, etc. A wife can have an individual account at a bank with husband as beneficiary. (Insured to $250,000) The husband can have an individual account with wife as beneficiary. (Insured to $250,000.) The husband and wife can have a joint account at the same bank. (Insured to $250,000) The wife can have an IRA account at this same bank. (Insured to $250,000.) Likewise the husband IRA account. (Insured to $250,000.) There are more possibilities as others have stated but this alone would be insurance of 1.25 million at a single institution. Another bank starts all over again.

SteveR Loc: Michigan

If you have over $500,000 in one bank in various accounts, the best way to find out is to have your bank run an FDIC analysis of your coverage by including all of your accounts in the analysis. This is run directly through the FDIC. As I said previously, that's what we did today, and despite having funds in two different accounts, the second account was not covered after the first was covered for 500K.