Examples of FDIC Insurance Limits and Coverage
1. Individual Accounts: John has $200,000 in a savings account at Bank XYZ. Since the standard coverage limit for individual accounts is $250,000, John’s entire balance is fully insured by the FDIC.
2. Joint Accounts: Sarah and David have a joint checking account with a balance of $500,000 at Bank ABC. Each co-owner of the joint account is insured up to $250,000, so their total coverage for the joint account is $500,000 ($250,000 for Sarah and $250,000 for David).
3. Retirement Accounts: Emily has a traditional IRA with a balance of $300,000 at Bank QRS. In addition, she has a Roth IRA with a balance of $200,000 at the same bank. Both IRAs are considered separate ownership categories, so each is insured up to $250,000, for a total coverage of $500,000.
4. Revocable Trust Accounts: The Smith Family Trust has a revocable trust account with a balance of $1,000,000 at Bank DEF. The trust has three beneficiaries: Tom, Lucy, and Emma. Each beneficiary is insured up to $250,000, so the total coverage for the trust account is $750,000 ($250,000 for each beneficiary).
5. Business Accounts: XYZ Corporation has a business checking account with a balance of $700,000 at Bank MNO. Since business accounts are insured separately from personal accounts, the entire balance of $700,000 is insured by the FDIC.