Since 1933 when the FDIC was formed, not one person has lost even a penny of their insured deposits. To promote consumer confidence, the insurance per depositor was increased to $250,000 until December 2013. The insurance applies to all deposit accounts, including checking accounts, savings accounts, money market accounts and certificates of deposit. It does not cover stocks, bonds, or mutual funds.
A lot of people don’t really understand that you can insure much more than $250,000 in a savings account, money market account, or certificate of deposit. The FDIC insures each depositor up to $250,000. So if a husband and wife have a savings account together, they are insured up to $500,000. The FDIC also has eight different categories of insurance. Additional insurance may apply to retirement accounts, trust accounts, business accounts, government accounts and employee accounts. If the deposits are structured correctly into the different categories, investors can maximize their FDIC insurance well above $250,000.
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