16 Aug I have more than $250K at one bank. Am I covered by FDIC?

Q. I have four Certificates of Deposit in one bank and I am way over the FDIC coverage of $250,000. One of those CD’s is in an IRA, so does that CD get its own $250,000 coverage apart from the other three?
— Saver

A. You’re smart to ask about what protections your savings have.

Here’s what to know.

Deposits that are held in different ownership categories at the same FDIC-insured bank are separately insured, said Charles Pawlik, a certified financial planner and chartered financial analyst with Beacon Trust in Morristown.

He said the standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. FDIC deposit insurance covers retirement accounts in which plan participants have the right to direct how the money is invested, including Individual Retirement Accounts (IRAs), he said.

“Therefore, an IRA account would be insured up to the $250,000 limit, which would be separate from the FDIC coverage afforded to different account types at the same bank,” he said.

Separately, he said, CDs or other single accounts — an account owned by one person without named beneficiaries — such as checking or savings accounts that are titled/owned in your individual name and are held at the same FDIC insured bank, receive $250,000 in FDIC coverage in aggregate.

Also separately, each co-owner’s share of joint accounts held at the same FDIC-insured bank are added together and insured up to $250,000, for a total of $500,000 in FDIC coverage across accounts that are jointly owned, he said.

Other ownership categories such as Revocable Trusts also carry their own FDIC coverage, which is generally $250,000 for each unique beneficiary, subject to requirements, he said.

To learn more about FDIC coverage limits, the various ownership categories that are separately insured and upcoming changes to coverage levels for Revocable and Irrevocable Trust account categories, you can visit fdic.gov and click on “Deposit Insurance” under the “Resources” section of the website.

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This story was originally published on Aug. 16, 2023.

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