Insuring Your Accounts

What is FDIC Insurance?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds. Choice Financial is a member of the FDIC.

What is insured by the FDIC?

Personal and business deposits including:

  • Checking Accounts
  • NOW Accounts
  • Savings Accounts
  • Money Market Savings Accounts
  • Certificates of Deposits (CDs)
  • Deposit products (such as CDs and savings accounts) held in IRAs
  • Health Savings Accounts
  • Cash equivalent accounts (such as Cashier's Checks, Money Orders, Loan Disbursement Checks, Interest Checks and other Drafts issued and outstanding by Choice Financial)

What amount of insurance coverage do I have for my accounts?

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

The following special rules apply to non-interesting bearing transaction accounts:

  • Starting December 31, 2010 through December 31, 2012: Beginning December 31, 2010, and continuing through December 31, 2012, the FDIC will fully insure deposits in non-interest bearing transaction accounts, regardless of the amount in the account. The full insurance on non-interest bearing transaction accounts will be separate from and in addition to the FDIC insurance coverage a depositor may have for interest-bearing accounts. Interest on Lawyers Trust Accounts (IOLTAs) will be eligible for an unlimited guarantee, even though we may pay interest on the account. Low-interest consumer checking accounts will no longer be eligible for an unlimited guarantee. Click HERE for full details.

  • Starting January 1, 2013: The FDIC will no longer fully insure deposits in non-interest bearing transaction accounts. Funds in non-interest bearing transaction accounts will be insured up to $250,000 under the FDIC's general deposit insurance rules.

Coverage Beyond the Standard Maximum Deposit Insurance Amount

The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. The ownership categories are (1) single, (2) joint, (3) revocable trust (informal revocable trusts such as payable-on-death accounts and formal revocable trusts such as living/family trusts created for estate planning purposes), (4) irrevocable trusts, (5) certain retirement plans, (6) employee benefit plans, (7) business (corporation, partnership, unincorporated associations), and (8) government.

Additional Resources

Telephone: 1-877-ASK-FDIC (877-275-3342)
Web:
www.fdic.gov – for general FDIC insurance information
www.fdic.gov/edie – use FDIC’s Electronic Deposit Insurance Estimator to determine coverage on your individual deposit accounts