Insuring your home, health , and cars just makes sense. You want to protect what’s important to you (or what’s expensive to replace). So why would you not protect your money, too? That’s where the Federal Deposit Insurance Corporation (FDIC) comes in.
The FDIC was created in 1933 during the Great Depression as a way to insure bank deposits in case of bank failure. For your money to qualify for coverage, it must be in an FDIC-insured bank account (like Ally Bank). FDIC insurance covers deposit accounts including Interest Checking Accounts, Online Savings Accounts, Money Market Accounts, and Certificates of Deposit.
Pro tip: Non-banks may not offer the same coverage as FDIC-insured banks do. It’s important to ask if your money is protected by FDIC insurance and how.
Each FDIC-insured account is covered for up to $250,000 (including principal and interest), per depositor, per FDIC-insured bank, per ownership category. It may sound a little confusing, but that means by placing your money in accounts of different qualifying ownership categories, you can maximize your insurance beyond $250,000.
Here are several strategies you can take advantage of.