Despite recent bank failures dominating the headlines, experts say there's no need to worry if your money is insured by the Federal Deposit Insurance Corporation (FDIC).
Nearly all banks are insured by the FDIC, which protects your deposits up to $250,000 (per person, bank, and account type). That means even if your bank implodes, you won't lose the FDIC-insured money you kept there.
CNBC Select explains how to check if your bank is an FDIC member, as well as what you need to know about the types of bank accounts the FDIC protects.
3 ways to check if your bank is FDIC insured
The FDIC makes it easy to check if your bank is insured. You can look it up online, call the FDIC or find out directly through the bank.
Check online
You can easily discover if your bank is FDIC insured using the BankFind Suite tool.
Simply enter any of the following information: Bank name, website URL or FDIC certificate ID; the status of the bank; City, state or zip code. All of the search fields are optional — you can enter as much information as you have about your bank to narrow the search or fill in a single search field to see a longer list of FDIC-insured institutions.
Call the FDIC
If you prefer to talk to a person, you can call the FDIC at 1-877-275-3342 and have an agent check if your bank is insured. Keep in mind, right now call center wait times are likely longer than usual.
Call your bank or look for the FDIC sign
FDIC-insured banks typically have signage identifying the institution as an FDIC member and often include that information in marketing materials. You could also call your bank directly and ask if your accounts are FDIC insured.
What accounts are protected by FDIC insurance?
FDIC insurance is designed to protect your money in the case of a bank failure and it covers a range of banking products, including:
- Checking accounts
- Savings accounts
- Money market deposit accounts
- Certificates of deposit (CD)
- Prepaid cards (assuming certain FDIC requirements are met)
- Cashier's checks, money orders and other official items issued by a bank
- Negotiable order of withdrawal (NOW) accounts
The one caveat is the FDIC covers $250,000 per person, per bank and per account category. This means that most people are well under the FDIC coverage limits unless they have a large amount of money deposited at a single bank and in one type of account. Here's how the FDIC classifies deposit accounts:
FDIC deposit insurance coverage limits
Type of account owner category | Coverage limit |
---|---|
Single accounts | $250,000 per owner |
Joint accounts | $250,000 per co-owner |
Certain retirement accounts | $250,000 per owner |
Revocable trusts | $250,000 per owner per unique beneficiary |
Corporation, partnership and unincorporated association | $250,000 per corporation, partnership or unincorporated association |
Irrevocable trusts | $250,000 per unique beneficiary that's entitled to the account |
Employee benefit plans | $250,000 per plan participant that's entitled to the account |
Government accounts | $250,000 per official custodian (more coverage may be available) |
If your deposits exceed the FDIC insurance limits, then you could spread your money between several different banks. Remember, having a savings account and checking account at the same bank only gets you $250,000 in total coverage between both accounts (if they aren't joint accounts) since they are part of the same account category. There are also some accounts that do the work for you. For instance,Wealthfront Cash Accounts are FDIC-insured up to $2 million by allocating deposits across up to eight partner banks.
When you're comparing bank accounts, look for accounts withno monthly fees and compare interest rates to find the best return for your money.Here is a handful of CNBC Select's top-rated deposit accounts.
Capital One 360 Checking®
Capital One Bank is a Member FDIC.
Monthly maintenance fee
$0
Minimum deposit to open
$0
Minimum balance
None
Annual Percentage Yield (APY)
0.10%
Free ATM network
70,000+ Capital One®, MoneyPass andAllpoint® ATMs
ATM fee reimbursem*nt
None
Overdraft fee
$0
Mobile check deposit
Yes
Terms apply.
Ally Bank Spending Account
Ally Bank is a Member FDIC.
Monthly maintenance fee
$0
Minimum deposit to open
$0
Minimum balance
None
Annual Percentage Yield (APY)
0.10% less than $15,000 minimum daily balance; 0.25% over $15,000 minimum daily balance
Free ATM network
43,000+ Allpoint® ATMs
ATM fee reimbursem*nt
Up to $10 per statement cycle
Overdraft fee
$0
Mobile check deposit
Yes
Terms apply.
LendingClub LevelUp Savings Account
LendingClub Bank, N.A., Member FDIC
Annual Percentage Yield (APY)
5.30% (with monthly deposits of at least $250), or 4.80%
Minimum balance
None
Monthly fee
None
Maximum transactions
Excessive transactions fee
None
Overdraft fees
N/A
Offer checking account?
Yes
Offer ATM card?
Yes
Terms apply.
Marcus by Goldman Sachs High Yield Online Savings
Goldman Sachs Bank USA is a Member FDIC.
Annual Percentage Yield (APY)
4.40% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
No
Terms apply.
UFB Portfolio Savings
UFB Portfolio Savings is offered by Axos Bank ® , a Member FDIC.
Annual Percentage Yield (APY)
Up to 5.15%APY on any savings balance; add UFB Freedom Checking and meet checking account qualifications to get an additional up to0.20%APY on savings
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
ATM access
Free ATM card with unlimited withdrawals
Maximum transactions
6 per month; terms apply
Terms apply.
Read our UFB Portfolio Savings review.
Bottom line
FDIC insurance protects depositors at member banks up to $250,000 per person, bank and account category. Most banks are FDIC insured. But if you want to know for sure if your bank is an FDIC member, the easiest way to find out is by using the FDIC's BankFind Suite search tool.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.