April 01, 2022

What Does FDIC Insured Mean?

You’ve probably heard The Callaway Bank mention we are FDIC insured but never thought about it or how it affects you. So what does it mean to be FDIC insured? In short, it’s a guarantee that if a bank goes out of business, the account owner (you) won’t lose any money, up to $250,000 per depositor (per bank) and per ownership category.

Who or what is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. To accomplish this mission, the FDIC:

  • Insures deposits; 
  • Examines and supervises financial institutions for safety, soundness, and consumer protection; 
  • Makes large and complex financial institutions resolvable; 
  • Manages receiverships.

Concept of saving protection

Since 1933 (when The Callaway Bank was just 76 years old), the FDIC seal has symbolized the safety and security of the nation’s financial institutions. FDIC deposit insurance enables consumers to confidently place their money at thousands of FDIC insured banks, like The Callaway Bank, across the country and is backed by the full faith and credit of the United States government.

FDIC deposit insurance coverage depends on two things: 

  1. whether your chosen financial product is a deposit product; and 
  2. whether your bank is FDIC-insured. 

Is There A Fee Required?

No, there is no fee charged to the customer for this coverage. The bank pays this fee, and you are automatically covered when you open a covered deposit account. Covered accounts include but are not limited to checking, savings, money markets, and CDs. 

What Is The Coverage?

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met.

All deposits that an account holder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount.

Have Questions About FDIC Coverage?

Please stop by to visit with one of our Personal Bankers or give us a call at 573-642-3322.

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