Insured Deposits
Insured Deposits:
The FDIC insures deposits in some, but not all, banks and savings associations. FDIC insured institutions must display an official sign at each teller window or teller station. Insured savings associations display the official savings association sign. Insured banks display either the official bank (FDIC) sign or the official savings association (eagle) sign. In the event of a bank failure, federal deposit insurance protects deposits that are payable in the United States. Deposits that are only payable overseas, and not in the United States, are not insured. Securities, mutual funds, and similar types of investments are not covered by deposit insurance.
The basic insured amount of a depositor is $100,000. Accrued interest through the date of the financial institution’s closing is included when calculating insurance coverage. Deposits maintained in different categories of legal ownership are separately insured. So, you can have more than $100,000 insurance coverage in a single institution. The most common categories of ownership are single ownership, joint ownership, and testamentary accounts. Separate insurance is also available for funds held for retirement purposes, like IRA’s, Keogh, and pension or profit-sharing plans.
IRA and Keogh funds are separately insured from any non-retirement funds the depositor may have at an institution. But IRA and self-directed Keogh funds will be added together, and the combined total will be insured up to $100,000. IRA and self-directed Keogh funds will also be aggregated with certain other retirement funds, namely, those belonging to other self-directed retirement plans. IRA and Keogh time deposits made before December 19, 1993, are insured separately from each other and from any other funds of the depositor.