Picture of individual sitting in front of their couch calculating numbers in order to determine if their accounts are nearing the FDIC insurance limit.

FDIC Insurance

The Importance of FDIC Insurance

Protecting our customers’ deposits and funds at Flatwater Bank is a top priority. You may have seen or heard Member FDIC many times, but have you ever stopped and asked yourself what it means?

What is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. Government that protects depositors against the loss of insured deposits if an FDIC-insured or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. If an insured bank fails, FDIC insurance will cover your deposit accounts, dollar for dollar, up to the insurance limit, including principal and accrued interest through the date of the insured bank’s closing.

How much is insured by the FDIC?

The FDIC insures up to $250,000 per depositor, per insured bank, or financial institution for each account ownership category. In addition, retirement accounts, including IRAs and SEPs, are separately insured up to $250,000 per owner. Keep in mind that the FDIC provides separate insurance coverage for funds depositors may have in different categories of legal ownership. The FDIC refers to these different insurance categories as “ownership categories.” This means that a bank customer who has multiple accounts may qualify for more than $250,00 in insurance coverage if the customer’s funds are deposited in different ownership categories, and the requirements for each ownership category are met. The ownership categories are single accounts, certain retirement accounts, joint accounts, revocable trust accounts, irrevocable trust accounts, employee benefit plan accounts, corporate accounts, and government accounts.

What is insured by the FDIC?

All types of Flatwater Bank deposits are FDIC-insured, including:

  • Checking Accounts
  • Savings Accounts
  • Deposit products such as CDs, Money Market accounts, and IRAs
  • Official items issued by the bank, such as cashier’s checks

What isn’t insured?

The FDIC does not insure other bank products and services, including:

  • Stocks
  • Bonds
  • Mutual fund shares
  • Life insurance policies
  • Annuities
  • Securities
  • Safe deposit contents

The FDIC provides separate insurance coverage for a depositor’s funds at the same insured bank if the deposits are in different ownership categories. You should know that you have several options to ensure all your money is FDIC insured. If you think you are in danger of bumping up against or exceeding the $250,000 limit at our bank or another institution, contact us, and we can assist in reviewing your accounts and coverage. Or, you can access FDIC’s Electronic Deposit Insurance Estimator (EDIE), available here.

Learn more about the FDIC here.