FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit, including IRAs. FDIC insurance does not cover other financial products and services that banks may offer such as: bonds, securities, or repurchase agreements.
For FDIC insured banks, the standard deposit insurance amount is $250,000 per depositor under the FDIC’s general deposit insurance rules. Deposits in certain retirement accounts (IRAs) are insured separately up to $250,000 per owner. Ask your Jefferson banker how to increase your overall FDIC coverage by adding children or P.O.D. to your accounts.
To contact the FDIC regarding deposit insurance questions, call 1-877-ASK-FDIC (1-877-275-3342) or visit www.fdic.gov.
To calculate your deposit insurance coverage, go to www.fdic.gov/edie.
If you have any questions regarding FDIC Deposit insurance or if you have any questions on how to maximize the deposit insurance for your accounts, please contact us at 314-621-0100 or use our online contact form.
What It Means to Work with FDIC Insured Banks
The FDIC began as a response to the bank failures during the Great Depression of the 1920s and 1930s. During that time, many depositors lost their life’s savings as a result of market fluctuations that had little to do with the prudence of many of the banks themselves or of their customers.
As a result, the Franklin D. Roosevelt administration established the FDIC to protect depositors from the consequences of ‘bank runs’ – which is what happens when depositors all panic at the same time about the soundness of their depositary institutions. While not all banks are required to be FDIC insured banks, competitive forces make it so that it is challenging to find US banks that aren’t FDIC insured banks.
When you deposit funds into an insured checking or savings account – or buy an insured certificate of deposit – even if the FDIC insured banks fail, up to $250,000 in the accounts will be covered by the FDIC.
In practice, however, when FDIC insured banks fail, their accounts are typically bought up by other banks as they are being dissolved. Because of this, the FDIC rarely ends up paying claims.
FDIC insured banks help to ensure the overall soundness of the American banking system. Jefferson Bank & Trust is among the longest standing FDIC insured banks in the St. Louis area, with a history of sound lending practices going back more than 125 years.
Risks of International Banking Contrasted with FDIC Insured Banks
Many foreign countries have similar programs to FDIC insurance, but not all of them do. Beware of advertisements from foreign banks offering unusually high savings account interest rates – these often come from countries without insurance protections comparable to the ones provided by FDIC insured banks. If the foreign banks fail, you could be left with nothing – unlike when you deposit funds in FDIC insured banks.
Learn More About FDIC Insured Banks
If you have any questions about insured accounts or about other FDIC insured banks, call us at 314-621-0100 or use our contact form. To find out more about what makes us one of the best banks in St. Louis, contact us or visit one of our St. Louis banking locations today.