What does FDIC insured mean?
FDIC insured means a bank's deposits are covered by the Federal Deposit Insurance Corporation. Deposits are automatically insured to at least $250,000 at each FDIC-insured bank, and the insurance covers deposit accounts, not investments.
Action level Worth checking
- Why you are seeing it
- It is shown by banks on their websites and account documents.
- Why it matters
- It tells you the deposits at that bank are insured, up to at least the standard limit, which matters when you decide where to keep your money.
- What should I do?
- Check that the bank is FDIC insured before you deposit money.
- Find out whether each product is a deposit account or an investment, because only deposits are covered.
- If you hold a lot at one bank, ask the bank or the FDIC how the limit applies to you.
- A common misunderstanding
- FDIC insurance does not cover everything a bank sells: stocks, bonds, mutual funds and similar products are not insured by it.
What it covers
FDIC deposit insurance covers traditional deposit accounts: checking accounts, savings accounts, money market deposit accounts and certificates of deposit. Deposits are automatically insured to at least $250,000 at each FDIC-insured bank.
What it does not cover
| Not insured by the FDIC |
|---|
| Mutual funds |
| Annuities |
| Life insurance policies |
| Stocks and bonds |
| Crypto assets |
| Municipal securities |
| Safe deposit box contents |
A simple example
Two things at one bank
A savings account at an FDIC-insured bank is a deposit account, so it is covered.
Stocks bought through the same bank are not deposits, so the FDIC does not insure them.
The example shows the idea: check each product, not only the bank.
Only at an insured bank
- FDIC deposit insurance only applies to deposits held at FDIC-insured banks, so it is worth verifying that a bank is insured before you deposit money.