The FDIC insurance limit is up to $250,000 per depositor (you), per FDIC-insured bank (your bank) and per ownership category (how the account is owned). An ownership category is how you store your money at the bank, or rather, the type of legal ownership you have over the account.
| OWNERSHIP CATEGORY | DEFINITION | COVERAGE LIMIT |
|---|---|---|
| Single Accounts | An account owned by a single person | $250,000 per owner |
| Joint Accounts | An account owned by two or more people | $250,000 per co-owner |
| Certain Retirement Accounts | Long-term, often tax-advantaged savings accounts | $250,000 per owner |
| Business Accounts | A deposit account for business funds | $250,000 per corporation, partnership or unincorporated association |
| Government Accounts | Accounts owned by the U.S., any state government, county, municipality, etc. | $250,000 per official custodian (the person safeguarding the account) |
| Revocable Trust Accounts* | An account associated with a trust that determines how your assets are to be handled after you pass | $250,000 per owner, per unique beneficiary |
| Irrevocable Trust Accounts* | An account associated with a non-changeable trust that determines how your assets are to be handled after you pass | $250,000 for the non-contingent interest of each unique beneficiary |
| Employee Benefit Plan Accounts | Account associated with an employer-sponsored retirement plan | $250,000 per plan participant |
*A new, simpler rule will go into effect in April 2024 regarding coverage for revocable and irrevocable trust accounts. A deposit account owner’s trust deposits — revocable and irrevocable — will be insured for up to $250,000 for each beneficiary (up to five). This is regardless of contingencies.
SAMPLE PORTFOLIO OF
FEDERALLY INSURED ACCOUNTS
| ACCOUNT TITLE | ACCOUNT OWNERSHIP CATEGORY | OWNER(S) | BENEFICIARIES | INSURABLE AMOUNT |
|---|---|---|---|---|
| Husband | Single account | Husband | $250,000 | |
| Wife | Single account | Wife | $250,000 | |
| Husband & Wife | Joint account | Husband & Wife | $500,000 | |
| Husband payable-on-death account | Revocable Trust Account | Husband | Wife | $250,000 |
| Wife payable-on-death account | Revocable Trust Account | Wife | Husband | $250,000 |
| Husband & Wife Living Trust | Revocable Trust Account | Husband & Wife | Child 1, Child 2, Child 3 | $1,500,000 |
| Husband IRA | Certain Retirement Account | Husband | $250,000 | |
| Wife IRA | Certain Retirement Account | Wife | $250,000 | |
| Total | $3,500,000 |