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FDIC Insurance

Ally Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The FDIC protects your Ally Bank deposits up to $250,000 per depositor for each qualifying account ownership category. This means you can rest assured that your deposits are safe up to FDIC limits, no matter what’s happening in the economy.

How FDIC Insurance Works

The FDIC, an independent federal agency, protects the money you deposit in checking, savings, money market, CD, and retirement accounts at insured banks like Ally Bank. FDIC insurance is backed by the U.S. government—according to the FDIC, no depositor has lost a penny of insured funds since the agency’s founding in 1933.  

 

FDIC coverage starts automatically as soon as you open your account. But keep in mind: if you choose to create a payable-on-death account, we’ll need some identifying information about your beneficiaries—like an address, birthdate, and government-issued ID number—to comply with the FDIC’s recordkeeping rules.

Understanding FDIC Insurance Coverage

The standard insurance amount is $250,000 per depositor, per insured bank, for each ownership category. This means that by having accounts in different ownership categories, like single accounts and joint accounts, you can get more than $250,000 in coverage. You can calculate your current coverage amount using the FDIC’s EDIE the Estimator.

 

If your balance is higher than your current FDIC insurance coverage amount, consider these strategies to maximize your coverage:

Open a single account for each adult family member.

If you and your spouse or partner each have a single account insured up to $250,000, together, you’ll have a total of $500,000 coverage.

Pool your money into joint accounts. 

Joint accounts are insured separately from accounts in other ownership categories, up to a total of $250,000 per owner. This means you and your spouse can get another $500,000 of FDIC insurance coverage by opening a joint account in addition to your single accounts. And adding another joint account owner—like a parent—adds another $250,000 in coverage, and so on.

Save for your child.

You may be able to get an additional $250,000 of coverage for your family by opening a custodial account (also known as a Uniform Transfers to Minors Act or Uniform Gift to Minors Act account) in a minor’s name. For insurance purposes, the FDIC treats these as single accounts owned by the minor.

Save for retirement with an IRA Online Savings Account or IRA CD. 

In addition to helping you plan for your future, a retirement account can help you increase your FDIC insurance coverage—retirement accounts are insured up to $250,000.

Add beneficiaries to your accounts. 

You can increase your FDIC insurance coverage by creating a payable-on-death account (also known as an informal trust, in-trust-for, or Totten Trust account) or titling an account in the name of a formal revocable trust. For these account types, each unique beneficiary adds $250,000 of coverage up to FDIC limits. For example, a payable-on-death account with 1 owner and 5 beneficiaries could be insured up to $1,250,000.

Keep in Mind

This page is for informational purposes only. We don’t give legal, tax, investment, or financial advice. If you have questions about FDIC insurance, consult a financial professional or check out the FDIC’s educational materials.

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