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Above link: If there is more than 250k balance, and split the money into multiple performance saving accounts (each account is same account), does each account have its own FDIC insurance limit 25000? Or FDIC insurance limit 25000 is applied to per account type (no matter how many accounts, total insurance limit is 25000, since they have same account owner and same account type)?
How does FDIC insurance work for multiple accounts (same owner, same account type)?
If you open 10 savings accounts a cap one all in the same name/ownership you have the same insurance limit as having one of the same. It’s worth reading the FDIC’s website
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met.
All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount.
If you open 10 savings accounts a cap one all in the same name/ownership you have the same insurance limit as having one of the same. It’s worth reading the FDIC’s website
Ok, for my question, the answer is : total insurance limit is 250000, no matter how many saving accounts.
The link shows "Single account", "joint account", ..... my understanding is: if I have one checking account and one saving account, they are within same bank, and I am the only owner, then the total insurance is also 250000? Not 500000? It does not really say account type (saving or checking), it only says Single Account/Joint Account.
You can have more than $250,000 insured
The $250,000 limit isn’t necessarily the maximum amount of money an individual can have covered by FDIC insurance.
The limit applies for each depositor, per FDIC-insured bank, per ownership category. This means that if you and your spouse have $500,000 in a joint savings account, each of you would be covered individually up to $250,000, making the entire balance insured.
And if you had $500,000 in the joint account and another $250,000 in a savings account with the same bank where you’re the sole owner, you’d get the full $250,000 insured on both accounts because they fall under different ownership categories.
You’d also be able to have accounts with multiple banks and get the full protection amount on each one.
Above link: If there is more than 250k balance, and split the money into multiple performance saving accounts (each account is same account), does each account have its own FDIC insurance limit 25000? Or FDIC insurance limit 25000 is applied to per account type (no matter how many accounts, total insurance limit is 25000, since they have same account owner and same account type)?
How does FDIC insurance work for multiple accounts (same owner, same account type)?
Thanks.
For a single person, the total could be $250k. You could have another $250k in a IRA or retirement type account. Check with your bank if CD's are also $250k subject to the term of the CD.
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