Insuring Your Deposits: Insurance Limits

Insuring Your Deposits: Insurance Limits

The purpose of the FDIC is to insure your money in the event that your bank fails. The FDIC is backed by the full faith and credit of the United States government. Deposits in an FDIC insured bank, like Pinnacle, are insured dollar-for-dollar up to the insurance limit.

The basic insurance limit has increased temporarily to $250,000 per person, per insured bank. This increase will last until Dec. 31, 2013.

In addition to the basic coverage, all noninterest-bearing accounts, including both personal and business accounts, are fully insured for the entire amount in the deposit account. This unlimited coverage is temporary and will remain in effect until Dec. 31, 2012.

The term "noninterest‐bearing transaction account" includes a traditional checking account or demand deposit account that earns no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include traditional checking or demand deposit accounts that earn interest, money market deposit accounts or NOW transaction accounts.

The insurance covers the combined total of your savings, checking and other deposit accounts. Deposit insurance is not increased, for example, by putting $250,000 into a savings account and $250,000 in a CD in the same bank. In that case, $250,000 is insured, not $500,000.

However, deposits maintained in different categories of ownership are separately insured: single accounts, joint accounts, revocable trust accounts, certain retirement accounts and irrevocable trust accounts.  Therefore, it is possible to have millions in deposits at one insured bank and still be fully insured.  See our article on categories of ownership.

The following lists shows what type of accounts are covered and not covered.

Checking Accounts
Savings Accounts
Money Market Accounts
Retirement Accounts
Revocable Trust Accounts
Certificate of Deposits (CDs)     

Not Covered
Stocks and Bonds
U.S. Treasury Bills
Mutual Funds
Life Insurance Policies
Municipal Securities

The FDIC has provided an online Electronic Deposit Insurance Estimator (EDIE). Once you’ve accessed EDIE you can choose between two options:

  • Determine if you have adequate deposit insurance for the accounts you have at a single FDIC-insured financial institution.
  • Estimate the deposit insurance coverage you have for all your Personal Accounts, including Sole Proprietorship Accounts at a single financial institution.

Calculate your coverage with EDIE 


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