# FDIC insurance **URL:** \ **Category:** Factual Questions\ **Created:** [September 18, 2008, 7:34pm UTC](https://boards.straightdope.com/t/fdic-insurance/464194 "2008-09-18T19:34:22Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![Boyo\_Jim](https://avatars.discourse-cdn.com/v4/letter/b/87869e/32.png) [@Boyo\_Jim](https://boards.straightdope.com/u/Boyo_Jim)\ **Post date:** [September 18, 2008, 7:34pm UTC](https://boards.straightdope.com/t/fdic-insurance/464194/1 "2008-09-18T19:34:22Z")
I have just become the administrator of my uncle’s estate, and he had about $150k in a savings account. I have heard several things about FDIC insurance, and they can’t all be true. Can someone answer a few specific questions? I have heard accounts are insured to $100K. Correct? The conflicts I’ve heard are about what that $100K limit means. I have heard that it is “per account” – that if I had two accounts wth $75K each, all my money would be convered. I have also heard that it is “per bank” – that no matter how many accounts I had at one bank (or even several different branches), the FDIC would only cover up to $100K. Finally, I’ve heard it’s “per person” – if I was unlucky enough to deposit money into two separate banks that failed, I would still only get a max of $100K back. I’m especially skeptical of the last story – if one bannk failed and you moved your money to another which also fails, you’re just out of luck? Just don’t seem right. ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [September 18, 2008, 7:36pm UTC](https://boards.straightdope.com/t/fdic-insurance/464194/2 "2008-09-18T19:36:46Z")
The [FDIC web site](http://www.fdic.gov/deposit/deposits/index.html) has a tool estimator that might help. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [September 18, 2008, 11:23pm UTC](https://boards.straightdope.com/t/fdic-insurance/464194/3 "2008-09-18T23:23:32Z")
If “Boyo Jim” has an account at First National with $100K, he’s covered. If BJ has _another account_ at First National with an additional 25K, he’s not covered on that 25K. If BJ has a _joint account_ with his uncle, in both their names, with an additional 100K in that account, it’s covered also. At least, that’s my understanding. ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [September 18, 2008, 11:40pm UTC](https://boards.straightdope.com/t/fdic-insurance/464194/4 "2008-09-18T23:40:49Z")
> [@](#): > > Basic Insurance Amount Is $100,000 > > The basic insurance amount is $100,000 **per depositor per insured bank**. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor per insured bank. > > If you and your family have $100,000 or less in all of your deposit accounts at the same insured bank, you do not need to worry about your insurance coverage – your deposits are fully insured. > Coverage Over $100,000 > > The FDIC provides **separate insurance coverage for deposit accounts held in different categories of ownership.** > You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. > Common Ownership Categories > > The most common ownership categories are: > > ``` > * Single Accounts > * Certain Retirement Accounts > * Joint Accounts > * Revocable Trust Accounts > > ``` [Understanding Deposit Insurance | FDIC.gov](http://www.fdic.gov/deposit/deposits/insuringdeposits/) (Emphasis added.) ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [September 18, 2008, 11:50pm UTC](https://boards.straightdope.com/t/fdic-insurance/464194/5 "2008-09-18T23:50:19Z")
> [@](#): > > (d) Accounts of a decedent and accounts held by executors or administrators of a decedent’s estate. **Funds held in the name of a decedent or in the name of the executor, administrator, or other personal representative of his or her estate and deposited into one or more deposit accounts shall be added together and insured up to the SMDIA in the aggregate** ; provided, however, that nothing in this paragraph (d) shall affect the operation of § 330.3(j). **The deposit insurance provided by this paragraph (d) shall be separate from an insurance coverage provided for the individual deposit accounts of the executor, administrator, other personal representative or the beneficiaries of the estate**. [2000 - Rules and Regulations | FDIC.gov](http://www.fdic.gov/regulations/laws/rules/2000-5400.html#2000part330.6) (Emphasis added) ---
**Author:** ![Derleth](https://avatars.discourse-cdn.com/v4/letter/d/b9e5f3/32.png) [@Derleth](https://boards.straightdope.com/u/Derleth)\ **Post date:** [September 19, 2008, 12:20am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/6 "2008-09-19T00:20:57Z")
So, does the FDIC have the actual ability to make good on any of these guarantees? ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [September 19, 2008, 12:26am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/7 "2008-09-19T00:26:31Z")
> [@Derleth](#): > > So, does the FDIC have the actual ability to make good on any of these guarantees? Some of them: > [@](#): > > With an insurance fund totaling more than $49 billion, the FDIC insures more than $3 trillion of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country. > **[What We Do | FDIC.gov](https://www.fdic.gov/about/what-we-do)** > > Learn about the mission of the Federal Deposit Insurance Corporation (FDIC) and how we maintain stability and public confidence in the US financial system. Of course > [@](#): > > The FDIC’s Deposit Insurance Fund fell 14 percent in the second quarter to $45.2 billion due to the failure of IndyMac Bancorp Inc in July and other bank failures. [http://www.reuters.com/article/regulatoryNewsFinancialServicesAndRealEstate/idUSN1647548220080916?pageNumber=2&virtualBrandChannel=0&sp=true](http://www.reuters.com/article/regulatoryNewsFinancialServicesAndRealEstate/idUSN1647548220080916?pageNumber=2&virtualBrandChannel=0&sp=true) But, > [@](#): > > Bair said the FDIC has the option to tap into long-standing lines of credit with the U.S. Treasury Department to buttress its fund, but said she does not anticipate that happening. - Id.\* ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [September 19, 2008, 12:31am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/8 "2008-09-19T00:31:27Z")
> [@Derleth](#): > > So, does the FDIC have the actual ability to make good on any of these guarantees? Well, let’s check. The FDIC Fund currently has about $45.2 billion. This amounts to about 1.01% of the assets being covered. You do the math.:eek: ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [September 19, 2008, 12:41am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/9 "2008-09-19T00:41:17Z")
> [@Derleth](#): > > So, does the FDIC have the actual ability to make good on any of these guarantees? Like any insurance, it has the ability to make good on any of its guarantees, just not the ability to make good on _all_ of its guarantees. ---
**Author:** ![Boyo\_Jim](https://avatars.discourse-cdn.com/v4/letter/b/87869e/32.png) [@Boyo\_Jim](https://boards.straightdope.com/u/Boyo_Jim)\ **Post date:** [September 19, 2008, 2:37am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/10 "2008-09-19T02:37:12Z")
Thank you all. It looks like I should be moving some of the money into a second bank, unless there are some other obscure estate rules against splitting estate assets into separate accounts. I will be talking to the estate lawyer next week, and I’ll inquire about that. ---
**Author:** ![crypto](https://avatars.discourse-cdn.com/v4/letter/c/b3f665/32.png) [@crypto](https://boards.straightdope.com/u/crypto)\ **Post date:** [September 19, 2008, 3:44am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/11 "2008-09-19T03:44:38Z")
Just wondering about this very question under similar circumstances… so, let’s say I have $500K do deal with from an estate. Legally, I’d be covered if I had 1. $80K in 6 different financial institutions covered by FDIC insurance, with the remaining $20K in a 7th? 2. If I have assets totaling over $100K in both checking and savings at the same bank, I’m only covered for $100K? 3. What about CD’s? Since I can’t just move the money on a whim, if I have $250K in CD’s in a bank I use as my primary bank, anything I have over $100K is uninsured? I guess I need to understand more, and an estate lawyer may be the best way to go. If anyone can answer the above questions, I’d be grateful. My condolences, Boyo Jim. I kind of know what you are dealing with right now. SFP ---
**Author:** ![Boyo\_Jim](https://avatars.discourse-cdn.com/v4/letter/b/87869e/32.png) [@Boyo\_Jim](https://boards.straightdope.com/u/Boyo_Jim)\ **Post date:** [September 19, 2008, 3:59am UTC](https://boards.straightdope.com/t/fdic-insurance/464194/12 "2008-09-19T03:59:40Z")
> [@Stink Fish Pot](#): > > Just wondering about this very question under similar circumstances… > > so, let’s say I have $500K do deal with from an estate. Legally, I’d be covered if I had > > 1. $80K in 6 different financial institutions covered by FDIC insurance, with the remaining $20K in a 7th? > > 2. If I have assets totaling over $100K in both checking and savings at the same bank, I’m only covered for $100K? > > 3. What about CD’s? Since I can’t just move the money on a whim, if I have $250K in CD’s in a bank I use as my primary bank, anything I have over $100K is uninsured? > > I guess I need to understand more, and an estate lawyer may be the best way to go. If anyone can answer the above questions, I’d be grateful. > > My condolences, Boyo Jim. I kind of know what you are dealing with right now. > > SFP As I understand it from the links above, yes, yes,and yes. There is a link to a definition of “deposits” and it appears CDs are considered the equivalent of a savings or checking account.