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How to maximize FDIC coverage at Ally: Ways to insure excess deposits

What we'll cover

  • Why FDIC insurance is important

  • How FDIC insurance works

  • Options for depositors to insure excess funds

You insure your home, health and cars to protect your more valuable possessions. But what about your money? The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to do just that.

Introduced during the Great Depression, the FDIC continues to serve as a way to insure Americans’ bank deposits in case of bank failure — ultimately guaranteeing the money stays in their possession. 

As an Ally Bank customer, your deposits are FDIC-insured up to the maximum allowed by law. What does that mean for you and your finances? Here’s what you need to know.

How does FDIC coverage work?

Money in an FDIC-insured bank, such as Ally Bank, is covered up to $250,000 (including principal and interest) per depositor, per qualifying account ownership category. 

FDIC insures traditional deposit products, such as Ally Bank  checking accounts , savings accounts , individual retirement accounts (IRAs) and money market deposit accounts, as well as certificates of deposit (CD), cashier’s checks, money orders and other items issued by a bank. It does not insure investment products like stocks, bonds, mutual funds, annuities or life insurance policies.

How to insure excess deposits at Ally Bank

You may be asking yourself: What do I do if I have more than $250,000? 

Good news — there are a number of ways you can bolster your FDIC coverage with Ally Bank. It will take a little extra organization — but it’s well worth it! 

You have options to maximize your coverage at Ally Bank:

How to maximize your FDIC coverage at Ally Bank. The FDIC caps coverage at $250,000 per depositor, per account ownership category, but with Ally Bank you can expand that coverage through our different banking offerings. There are various options, some (but not all) of which can be combined to increase coverage. Spread the coverage, open a separate, unique deposit account at Ally Bank in the name of each family member. Partner up, open a joint account at Ally Bank, and your combined share of every joint account will be insured up to $250,000. Cover your kids, open one (or more) of our custodial accounts for your kid(s). Prepare for retirement, save for the future with Ally Bank’s IRA online savings accounts or IRA CD. Add beneficiaries, At Ally Bank, payable-on-death accounts cover each unique beneficiary. The following example applies for a payable-on-death account when five or fewer beneficiaries are named: one owner + one beneficiary = $250K, one owner + two beneficiaries = total of $500K, one owner + three beneficiaries = total of $750K, one owner + four beneficiaries = total of $1 million, one owner + five beneficiaries = total of $1.25 million

Explore other ways to maximize coverage

Beyond standard deposit accounts like checking and savings, the FDIC also insures other less common account types up to $250,000, including: 

Corporation, partnership or unincorporated association accounts: Many business accounts are protected by FDIC, but keep in mind accounts of a sole proprietorship or Doing Business As (DBA) are not insured under this category.  

Employee benefit plan accounts: Some employers offer employee welfare or pension benefit plans that are insured by FDIC.

Education savings: Accounts like Coverdell education savings accounts are insured as irrevocable trusts by the FDIC.

Government accounts: If you have access to an account owned by the federal government, state governments and certain other governmental bodies, you’re covered. 

Your financial future is in good hands

Thanks to FDIC coverage and a variety of digital banking options, Ally Bank customers can be confident knowing their money is protected up to the maximum allowed by law. With all the cash you’ve worked so hard to save properly insured, you can rest easy in the present and secure a successful financial future.

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