how does FDIC insurance translate to my bank account?

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So I’ve heard about FDIC insurance and how it means that “your account is insured for up to $250,000.”

But let’s say I won $1M in the lottery. In order to maximize my insurance coverage, would I have to open up accounts at 4 separate banks? Or could I open 4 accounts at the same bank? If the latter, would these 4 accounts have to have their own separate logins? Or could I have a single login with, say, 4 money market accounts under that single login?

I swear I’ve tried to Google different variations of this question. I have even asked the poor accounts officer at my bank, but he didn’t seem terribly confident in his answer.

In: Economics

9 Answers

Anonymous 0 Comments

FDIC will protect $250k per person per deposit type. So your savings account is counted separately from your checking account. You can also have a CD or any other account type, but only $250k worth for each type so 2 savings accounts count as 1 type.

This way FDIC will insure more than $250k but you have to have $250k in savings $250k in checking $250k in CD in money market. Anything over those limits is not insured.

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