Fdic Insurance Limit – FDIC Coverage Limits

The FDIC (Federal Deposit Insurance Corporation) is an independent agency created by the congress with the sole aim of protecting the funds that depositors place in banks and other savings associations.

FDIC Insurance limit?

The FDIC insurance limit has managed to go from $2,500 to $250,000.

The FDIC insured accounts allows $250,000 in deposit per depositor, per insured bank and for each account ownership category. This goes a long way to explain that an individual and joint account with a common owner can both receive  $250,000 respectively.

Just like individual accounts, business accounts can equally receive FDIC insurance limit that is capped at $250,000 per insured bank.

The FDIC insurance covers the below deposit accounts:

1. Checking Accounts

2. Savings Accounts

3. Money market deposit accounts

4. Certificates of deposit (Time Deposits)

5.Negotiable Order of Withdrawal accounts


FDIC deposit Insurance are determined by two major things which are:

1. If your chosen financial product is deposit product

2. If your bank is FDIC insured.

Facts You need to Note about FDIC Insurance Limit

1. Deposit accounts in different categories with a common owner can both get an insurance coverage. This means that you are qualified for more than $250,000 insurance coverage at one insured bank if only you own two or more deposit accounts in different categories.

2. All individual accounts with a common owner at an insured bank will be added together and their total insureed amount will be $25,000.

Examples of the individual accounts are:

  • ¬†The sole proprietorship account
  • Single-ownership account
  • Agent, custodian, or conservator account
  • Estate account
  • UTMA account.

3. If two individuals own a joint interest bearing checking account and a joint savings account at an insured bank, each of them are insured up to $250,000, providing them up to $500,000 insured coverage for their joint account.

FDIC Deposit Insurance Coverage Limits by Account Ownership Category
Single Accounts (Owned by One Person) $250,000 per owner
Joint Accounts (Owned by Two or More Persons) $250,000 per co-owner
Certain Retirement Accounts (Includes IRAs) $250,000 per owner
Revocable Trust Accounts $250,000 per owner per unique beneficiary
Corporation, Partnership and Unincorporated Association Accounts $250,000 per corporation, partnership or unincorporated association
Irrevocable Trust Accounts $250,000 for the noncontingent interest of each unique beneficiary
Employee Benefit Plan Accounts $250,000 for the noncontingent interest of each plan participant
Government Accounts $250,000 per official custodian (more coverage available subject to specific conditions)



I hope I have been able to answer your questions and and quench your curiosity about FDIC Insurance Limits for different type of accounts.

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