The Federal Deposit Insurance Corporation (FDIC) insures deposit accounts in every bank and thrift in the United States up to $250,000 per eligible account.  Since FDIC was created in 1933 as part of Depression-Era legislation, no depositor has lost a penny on insured deposits through bank failure.  That means if you have less than $250,000 deposited in an insured account in your bank, you need not worry that you will lose any of that money in the event your bank fails. 

Deposit insurance covers $250,000 per depositor per bank in each account category of legal ownership.  There are eight categories of legal ownership.  For example, if you have the maximum of $250,000 deposited in six categories of insured accounts at one bank, all $1,500,000 would be insured and safe from the failure of your bank.  12 U.S.C. § 1821(a)(1)(B)(i), (C), (E); 12 C.F.R. ¶ 330.  The categories are: (1) single accounts, (2) qualifying retirement accounts, (3) joint accounts, (4) revocable trust accounts, (5) irrevocable trust, (6) employee-benefit plan, (7) accounts of a corporation, partnership, or unincorporated association, and (8) government accounts.  Moreover, because of FDIC's seamless bank resolution procedures, your insured funds would be made immediately available to you in another bank that assumes responsibility for those deposits, and you would be able to access those deposit at the same locations.

 If you have any questions about the safety of your bank deposits, give us a call or contact us by email at your earliest convenience. 

DISCLAIMER:  No attorney-client relationship.  Although we are licensed attorneys, this information is neither legal advice nor legal services.  Moreover, there is no assurance of confidentiality in web-based communications. 

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