READING LIBRARY
Deposit insurance: know what is covered
Deposits and investments have different protections.
The standard coverage rule
FDIC deposit insurance generally covers up to $250,000 per depositor, per FDIC-insured bank, for each account ownership category. Multiple accounts in the same category at one bank are combined when determining coverage.
Coverage follows the asset
Eligible deposit products include checking accounts, savings accounts, and certificates of deposit. Stocks, bonds, mutual funds, annuities, and crypto assets are not FDIC-insured deposits. Buying an investment through a bank does not make it an insured deposit.
What about an IRA?
An IRA is an account structure. Eligible deposits in certain retirement accounts can receive coverage under the applicable ownership category; investments held in an IRA do not become FDIC-insured because they are in an IRA.
Check your situation
Use the FDIC's Electronic Deposit Insurance Estimator to review deposit coverage. Ownership categories have specific requirements, so verify the details for your accounts rather than relying on an account's label alone.