1. What is FDIC Insurance?

The Federal Deposit Insurance Corporation (FDIC) protects depositors against the loss of their insured deposits if an FDIC-insured bank fails. FDIC insurance is backed by the full faith and credit of the United States government.

2. How Does the Calculator Work?

The calculator uses the FDIC insurance formula:

Where:

• \( Balance \) — Total amount in the savings account
• \( 250000 \) — Standard insurance amount per depositor, per insured bank

Explanation: The FDIC insures up to $250,000 per depositor, per insured bank for each account ownership category.

3. Importance of FDIC Insurance

Details: Knowing your insured amount helps ensure your money is fully protected. Uninsured amounts could be lost if the bank fails.

4. Using the Calculator

Tips: Enter your total savings account balance in dollars. The calculator will show how much of that balance is FDIC-insured.

5. Frequently Asked Questions (FAQ)

Q1: What's the standard insurance amount?
A: $250,000 per depositor, per insured bank for each account ownership category.

Q2: Are all accounts covered?
A: FDIC covers checking, savings, money market accounts, and CDs. It does not cover investments like stocks or mutual funds.

Q3: How can I insure more than $250,000?
A: By opening accounts in different ownership categories (single, joint, retirement) or at multiple FDIC-insured banks.

Q4: Are credit unions covered?
A: No, credit unions are insured by the NCUA (National Credit Union Administration), which provides similar coverage.

Q5: Is the insurance limit permanent?
A: The limit can change by act of Congress. It was permanently raised from $100,000 to $250,000 in 2010.