Understanding FDIC Insurance

Since 1934, the Federal Deposit Insurance Corporation (FDIC) has been protecting depositors of insured banks against the loss of deposits if an insured bank fails^†. It’s important to understand what FDIC insurance is and what it can do for you so you can feel confident your money is protected.

What is the FDIC?

The FDIC is an independent government agency that protects consumers against the loss of their insured deposits if an FDIC-insured bank or savings association fails^‡. The FDIC is backed by the United States government. You do not need to be a U.S. citizen or resident to have your deposits insured by the FDIC^§. Since cash at home can be lost or stolen, FDIC insurance is one reason why your money can be safer in a bank.

How FDIC Insurance Works

Anyone with an insured deposit account at an FDIC-insured bank is covered by the FDIC up to insurance limits established by the FDIC.

You do not need to apply for coverage. If an FDIC-insured bank fails, the FDIC steps in to provide the depositor with the value of their accounts up to insurance limits established by the FDIC. Since Huntington Bank is an FDIC-insured bank, deposit accounts at Huntington are automatically insured by the FDIC up to FDIC-established limits.

Historically, the FDIC has paid the insured balance within a few days for personal accounts. Trusts and accounts held by third-party brokers might take longer due to the need to determine the amount of coverage for each depositor^¥.

Types of FDIC Insured Accounts

To get FDIC insurance protection, the account must be an insured deposit account in an FDIC-insured bank.

Not all bank accounts at an FDIC-insured bank will be deposit accounts. This coverage does not extend to stocks, bonds, annuities, safe deposit boxes (and contents), U.S. Treasury Bills, and other investment accounts.

You can get FDIC protection on:

• Checking Accounts (personal or business)
• Savings Accounts (personal or business)
• Money Market Accounts (MMA)
• Certificate of Deposit Accounts
• Cashier Checks and other official items from the bank
• Certain Retirement Accounts (including Individual Retirement Accounts, also known as an IRA)

Not all retirement accounts are FDIC-insured. Talk to your broker/advisor for more information.

How Much Does FDIC Insurance Cover?

The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. The FDIC provides a tool to help you figure out your coverage.

To learn more about the FDIC and its coverage, visit their website. If you’re concerned you may have a gap in protection, or if you think there’s a better bank account for you, call us or visit a local branch and speak with a banker or investment advisor.