FDIC: Protecting Your Deposits
Certainly, the idea of a bank – or banks – closing is unsettling to most people. But it’s important to keep the bigger picture in perspective. As a testament to the stability of the American financial system, our customers have maintained 100% of their deposits and earned above-average interest on their accounts.
Strong backstops for the banking industry created by the government are the most significant contributors to preventing mass instability and depositor panic nationwide. The best example is the Federal Deposit Insurance Corporation (FDIC), which has been protecting both individuals and commercial clients since being founded in response to widespread bank closures during the Depression. In fact, every FDIC-insured depositor over the last 90 years has been fully covered up to FDIC insurance limits despite literally thousands of institutional failures. In addition, a multitude of banking regulations, though not always 100% effective, continue to provide important guardrails.
How much of your money does the FDIC protect? There are actually two answers here. The FDIC automatically provides (at no cost to you) $250,000 of insurance per depositor, per institution. This coverage includes checking and savings accounts as well as certificates of deposit (CDs) and more. If you have multiple accounts (say a Do More BusinessTM Checking account and a money market savings account), simply total the balances to determine whether all your money is currently protected. In the event that you do exceed $250,000, options exist. Opening a joint account with a spouse, family member or anyone else provides greater FDIC coverage, raising the maximum limit to $500,000. Or, by placing your deposit funds with multiple banks, you can also protect larger totals.
Since opening our virtual doors nearly 25 years ago, First Internet Bank has operated with the financial well-being of personal and business depositors and the security of their accounts as our top priority. Learn more about our FDIC-insured business checking account, and all the advantages they offer.