What is FDIC Insurance? Information & Resoures

If you've ever opened a checking account or walked into a bank, you've most likely heard mention of "FDIC insurance". But what is the FDIC, and what exactly does it do for you, the consumer?

Backed by the full faith and credit of the United States government, the FDIC manages the Deposit Insurance Fund to insure deposits, protect the depositors of insured banks, and to resolve failed banks. They also foster communication and coordination among other countries’ deposit insurance systems. Since the FDIC was established in 1933, no depositor has lost one penny of FDIC-insured accounts up to $250,000. 

FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. If you are interested in the FDIC deposit insurance coverage, simply make sure you are placing your funds into a deposit product. For example, if you open a deposit product at BOS, an FDIC insured bank, you are automatically covered! No paperwork required. 

A deposit product could be:

• a checking account
• a savings account
• a money market deposit account
• a Certificate of deposit (CD)
• a prepaid cards (assuming certain FDIC requirements are met)

The amount of FDIC insurance coverage you may be entitled to depends on the FDIC ownership category. This generally means the manner in which you hold your funds at the bank. Below are examples of ownership categories and their applicable insurance coverage limit, including single accounts, certain retirement accounts and employee benefit plan accounts, joint accounts, trust accounts, business accounts as well as government accounts. 

The FDIC has a ton of resources available on its website that dive deeper into the specifics of deposit insurance, accounts that are not eligible to be insured, differences of ownership categories, and more. Get started at the links below. Or if you have questions about your coverage or would like to learn more about FDIC insurance you can chat with our Customer Care Team at bankwithbos.com or call 877-698-3278 to speak with a Customer Care Representative. Available during business hours.