Understanding FDIC Insurance

By Hightower Great Lakes on December 2, 2024

CLICK HERE TO WATCH VIDEO

You’ve probably heard the saying, “Don’t put all your eggs in one basket.” The same idea applies to FDIC protection.

Let’s break down how FDIC insurance protects your hard-earned savings and what steps you can take to stay covered.

FDIC insurance covers up to $250,000 per depositor, per bank, per account type.

So, let’s say you have $500,000…

You put $250,000 in a checking account at Bank A.

But you still have $250,000 left to protect.

What do you do?

You decide to move that money to Bank B in a separate account. 

With two different banks and accounts, your $500,000 should generally be fully covered under FDIC insurance, but it’s always a good idea to confirm with your banks to double check you’re within the limits.

If you have more than $250,000 in one account? That extra amount is at risk if the bank fails.

So, what if you’re married? A joint account can be insured up to $500,000—$250,000 for each person.

Diversifying your money across different banks or account types is key to maximizing your coverage.

And FDIC insurance isn’t just for checking accounts. Savings accounts, CDs, and certain retirement accounts are all protected as well.

However, stocks, bonds, and life insurance policies aren’t protected.

Now, if you’re managing larger sums of money, trust accounts have their own rules. Each beneficiary is insured up to $250,000, up to a maximum of five beneficiaries per trust.

If used the way it’s intended, FDIC insurance is designed to protect you in case your bank fails.

If you’re unsure if your money is fully protected, or you need help spreading your risk appropriately, schedule a call with us today.

If you’d like more information on how you can protect your assets, give us a call at (219) 531-4941.

---

Disclosure:

Hightower Great Lakes is a group of investment professionals registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

Hightower Great Lakes is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. This is not an offer to buy or sell securities.

No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is neither indicative nor a guarantee of future results. The investment opportunities referenced herein may not be suitable for all investors. All data or other information referenced herein is from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other data or information contained in this presentation is provided as general market commentary and does not constitute investment advice.

Hightower Great Lakes and Hightower Advisors, LLC or any of its affiliates make no representations or warranties express or implied as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. Hightower Great Lakes and Hightower Advisors, LLC assume no liability for any action made or taken in reliance on or relating in any way to this information. The information is provided as of the date referenced in the document. Such data and other information are subject to change without notice. This document was created for informational purposes only; the opinions expressed herein are solely those of the author(s) and do not represent those of Hightower Advisors, LLC, or any of its affiliates.

Source:

¹ https://www.fdic.gov/resources

² https://www.fdic.gov/resources/deposit-insurance/