The moment you open an account at a bank that is participating with the Federal Deposit Insurance Corporation (FDIC), your money becomes insured by the FDIC. If you open an account at a credit union, your money is most likely insured by the National Credit Union Insurance Fund (NCUIF). The FDIC and the NCUIF both serve as independent federal agencies that insure customer deposits. This means that even if your financial institution is unable to provide you with your deposits, you will not lose your money. The FDIC or NCUIF would step in, and get your deposited funds back to you.
The standard insurance amount for both of the above described agencies is $250,000 per depositor. Both agencies insure your money in checking, savings, money market, CD, and some other accounts. Neither agency insures stocks, bonds, Treasury securities, mutual funds, annuities, or life insurance. You can insure more than the $250,000 limit by having multiple owners (your spouse for example). Two accounts owned separately by a couple would have $500,000 insured. You can increase coverage even further by owning a joint account ($500K in coverage) and each owning a separate account ($250K each). This scenario would provide total insurance on $1million. You can review your coverage options for the FDIC by clicking here and the NCUSIF by clicking here.
If you own a single account with more than $250,000 InvestorKeep will send you an alert to maximize your coverage. Connect with your financial professional to ensure all your accounts are covered to the maximum amount possible.