Theoretically, you could insure $1 million or more by opening multiple accounts and maxing out your FDIC coverage limits. Online banks typically offer higher APYs to savers and lower fees, compared to traditional brick-and-mortar banks. For example, if you’re looking for savings accounts, you’d want to compare interest rates and fees at different banks. This does require a little research first to find the right bank. You could deposit it into a savings or money market account at another bank and it would be insured there. Let’s say you have $50,000 that’s not insured at your current bank. The simplest way to insure excess deposits above the $250,000 FDIC limit may be spreading money around to different banks. Here are some of the best ways to insure excess deposits above the FDIC limits. But what if you have $1 million or more in your accounts? Are there banks that insure millions? And how much cash should you keep in the bank anyway? There’s nothing special you need to do to qualify for it. The FDIC insurance limit applies to your accounts automatically, so long as your bank is FDIC insured. You can also use the FDIC’s Electronic Deposit Insurance Estimator to calculate your insurance coverage based on ownership category and account balance. If you have multiple accounts at the same financial institution, you can talk to a banker about which ones are protected up to the FDIC limit and how much you may have in excess deposits. But $50,000 of the money in your single ownership accounts would still be unprotected. Under FDIC insurance rules, you and your spouse would each have $250,000 in coverage, so the entire account would be protected. You have the same checking and savings account, but you also share a joint savings account with your spouse with a $500,000 balance. According to the FDIC insurance per account rules, $50,000 of your money would not be covered. You have $25,000 in checking and $275,000 in savings. Understand Your Current Coverage Limitsīefore you can insure excess deposits, it’s important to know how much of your deposits are already protected.įor example, say you maintain single ownership of a checking account and a savings account at the same bank. Keep this in mind if you have those types of assets at a bank. The FDIC does not insure stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if you buy them at an FDIC-insured bank. The FDIC insures these accounts, both the principal and interest earned, up to the specified limits. Official items issued by the bank (such as cashier’s checks or money orders).Negotiable order of withdrawal (NOW) accounts.You might have a joint checking or savings account with a spouse or an aging parent.Įligible retirement accounts and trust accounts can have one or more beneficiaries.įDIC insurance extends to all deposit accounts at insured banks. Joint accounts have two or more owners but no named beneficiaries. So, for example, you may have a checking account and a savings account in your name only. Individual accounts are accounts owned by one person, with no named beneficiaries. Corporation, partnership or unincorporated association account. Revocable and irrevocable trust account.Certain retirement accounts (such as an IRA).The FDIC recognizes these ownership categories when protecting deposits: The good news is there are different options for insuring high balances.Ĭurrently, the FDIC insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. Otherwise, some of your deposits could be at risk if your bank goes belly up. If you maintain higher balances in your bank accounts, it’s important to understand how much of your money falls under the FDIC insurance limit. However, this level of protection is not the standard. While this could’ve resulted in huge losses for high-balance depositors who didn’t withdraw their money in time, they lucked out when the Biden administration extended FDIC coverage to fully protect all customers, including those with balances above $250,000. This limit is partly why so many Silicon Valley Bank depositors-largely startups and venture capital-backed companies holding balances well above this threshold-panicked and withdrew their funds as the risk of a bank failure increased, causing SVB to become insolvent. That’s because there’s a cap on FDIC insurance and what it protects: $250,000 per depositor, per insured bank, for each account ownership category. This means as long as you bank at an insured institution, your money is protected in the event of a bank failure-at least to a certain degree.īut the recent collapse of Silicon Valley Bank (SVB) highlighted the fact that depositors with higher balances still have cause for concern. The Federal Deposit Insurance Corporation (FDIC) insures deposits placed in savings accounts, money market accounts, checking accounts and CDs.
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