FDIC Insurance Limits 2021

In the wake of the COVID-19 pandemic, many people have become more concerned about their financial security. One essential aspect of financial security is knowing how safe your money is in the bank. This is where FDIC insurance comes into play. In this article, we will take a deep dive into FDIC insurance limits for 2021 and what you need to know to keep your money safe.

What is FDIC insurance?

FDIC insurance is a type of deposit insurance offered by the Federal Deposit Insurance Corporation (FDIC) to protect depositors in case a bank fails. Under this insurance, up to a certain amount of money is insured by the FDIC, providing depositors with peace of mind knowing that their money is safe.

The FDIC insures deposits in banks and savings associations, including checking, savings, and money market accounts, as well as certificates of deposit (CDs). The insurance covers up to the insured limit at each FDIC-insured bank.

What is the insured limit for FDIC insurance in 2021?

The insured limit for FDIC insurance in 2021 is $250,000 per depositor, per FDIC-insured bank, for each account ownership category. This limit has remained the same since 2013 and is adjusted for inflation every five years.

What are the different account ownership categories?

There are several different account ownership categories that are covered by FDIC insurance. These categories include:

Each category is insured for up to $250,000 per depositor, per bank. This means that if you have multiple accounts that fall under different categories at the same bank, each account will be insured up to $250,000.

Why is FDIC insurance important?

FDIC insurance is important because it provides a safety net for depositors in case a bank fails. If a bank fails, depositors may lose their money without insurance. However, with FDIC insurance, depositors can rest assured that their deposits are protected up to the insured limit.

Even if a bank fails, the FDIC will typically work to ensure that depositors can access their funds as quickly as possible. In most cases, the FDIC will transfer deposits to another FDIC-insured bank, allowing depositors to continue to have access to their money without interruption.

What happens if my deposit exceeds the insured limit?

If your deposit exceeds the insured limit, only the amount up to the insured limit will be protected. Deposits in excess of the insured limit are not protected and are at risk if the bank fails.

For example, if you have $300,000 in a single account at an FDIC-insured bank, only $250,000 will be insured. The remaining $50,000 is not insured and is at risk if the bank fails.

What types of deposits are not covered by FDIC insurance?

There are certain types of deposits that are not covered by FDIC insurance. These include:

• Investment products such as stocks, bonds, mutual funds, and annuities
• Safe deposit boxes or their contents
• U.S. Treasury bills, bonds, or notes
• Foreign deposits

If you have deposits in any of these categories, they are not insured by the FDIC and are at risk if the bank fails.

How can I ensure that my deposits are fully insured?

There are several ways to ensure that your deposits are fully insured by the FDIC. These include:

• Spreading your deposits across multiple FDIC-insured banks
• Opening accounts in different ownership categories at the same bank
• Talking to a bank representative to ensure that your accounts are properly structured for FDIC insurance

By taking these steps, you can be confident that your deposits are fully insured and protected in case of a bank failure.

Conclusion

FDIC insurance is an essential component of financial security, providing depositors with protection and peace of mind. By understanding FDIC insurance limits and the different account ownership categories, you can ensure that your deposits are fully insured and protected in case of a bank failure. If you have any questions about FDIC insurance or how it applies to your specific situation, be sure to talk to a bank representative. With FDIC insurance in place, you can have confidence that your money is safe, even during uncertain times.