What does it mean if my savings account is FDIC insured?

Question

I've heard that's a good thing but I really don't know what it means. I have an online savings account that has a 4.5% APY and is FDIC insured up to $100,000, but not beyond that. So what does it mean if I end up one day with more than 100k in the account and it's not FDIC insured?

Answer 1

FDIC means that your money is federally insured for up to 100k, per account, per person.

If you are the only person on your savings account, then it is only insured for up to 100k. If you and your spouse are both on the account, then the account is insured for up to 200k.

If you have 3 accounts with the same bank, all in your name only, each account is insured for up to 100k. If one account has more than 100k in it, you will lose that money, even if another account does not have 100k in it.

If you have 3 accounts with the same bank, with both you and your spouse, each account is insured for up to 200k. If one account has more than 200k in it, you will lose that money, even if another account does not have 200k in it.

Make sense? I hope so! I deal with this on a daily basis!

Answer 2

FDIC insured means that the government will give you your money back (up to $100,000) in case your bank goes out of business and can't pay you. If you have more than $100,000 to put into savings, try spreading it out over several FDIC banks with no more than $100,000 in each account. Then all of your money will fall under FDIC insurance.

Answer 3

Per social security number, insured up to 100K. Simple as that. No fussy-fussy with multiple accounts. Besides, where's the logic in creating a limit for the amount insured if the investor has the option of creating multiple accounts of 100k, thereby risking losing nothing? Hope you liked the answer.

Answer 4

Your coverage also increases with the number of account holders. For example if you were to add a beneficiary to the account your coverage would increase to $200,000.

check out this FDIC site. It is an online insurance calculator and will help you maximise your coverage. http://www2.fdic.gov/edie/

Answer 5

It means that if the country goes bankrupt again, you will lose your money in that account over 100k. But, you have the option of having more than one account, so do that!

Answer 6

you take anything over 100k to a different bank and open another account!!! remembe if you have say 20k checking and 30k in savings and 55k in cds -- 5k is not insured!!!