What is FDIC Insurance and What Does FDIC Insurance Cover

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What is FDIC Insurance and What Does FDIC Insurance Cover

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Shared by: Tara Sims
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10/3/2008
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Know if your deposits are 100% FDIC-insured. In uncertain times such as these it is natural for you to have questions about your money and to seek reassurance that your money is safe. We at Wells Fargo want to make sure that you have access to the tools and resources you need to understand how FDIC insurance works.  Wells Fargo Bank, N.A. is a member of the Federal Deposit Insurance Corporation (FDIC). The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to provide insurance protection for depositors of failed banks and to help maintain sound conditions in the nations banking system. The FDIC is an independent agency of the U.S. Government. Since its inception, the FDIC has responded to thousands of bank failures. All insured depositors of failed banks and thrifts have been protected by the FDIC. The FDIC has launched a tool designed to help consumers learn about what the benefits and limitations of deposit insurance mean for you.1http://myfdicinsurance.gov/    What is insured by the FDIC?  All types of deposits held at Wells Fargo are covered by FDIC insurance including: o Checking Accounts o NOW Accounts o Savings Accounts o Money Market Savings Accounts o Time Accounts (CDs) o Certain Retirement Accounts such as IRAs and SEPs o Cashiers Checks, Money Orders, Loan Disbursement Checks, Interest Checks and Outstanding Drafts issued by Wells Fargo What amount of insurance coverage do I have for my accounts?  Basic Insurance Amount is $100,000 The basic insurance amount is $100,000 per depositor. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor.  Coverage Over $100,000 The FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. It is possible to qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. The ownership categories are (1) single, (2) joint, (3) revocable trust (informal revocable trusts such as Payable-on-death accounts and formal revocable trusts such as living/family trusts created for estate planning purposes), (4) irrevocable trust, (5) certain retirement plans, (6) employee benefit plans, (7) business (corporation, partnership, unincorporated associations) and (8) government. and still be fully insured. What is not insured by the FDIC?  Wells Fargo also offers a range of investment accounts that do not qualify as deposits and thus, are not covered by FDIC insurance. Examples of non-deposit investment products that are not covered by FDIC deposit insurance include: o Investments in mutual funds o U.S. Treasury bills, notes, and bonds purchased through an insured institution o Annuities o Stocks, bonds, or other securities o Contents of a Safe Deposit Box Where can I go if I still have questions?   If customers have questions, they may call FDIC toll-free at 1-877-ASK-FDIC (877-2753342) from 8 AM until 8 PM (Eastern Time) or contact them online at www.fdic.gov. You can also reach us directly at Wells Fargo at 1-866-245-3452, 24 hours a day or in one of our many convenient branches. v

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