The Federal Deposit Insurance Corporation is an independent federal agency that insures deposits at member banks. It was created in 1933 amidst the turmoil of the Great Depression to restore trust in the American banking system, a mission that persists to this day. Sandy Spring Bank has been a member of the FDIC since 1934.
What is the FDIC?Answer
The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring depositors for at least $250,000 per insured bank; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
What is covered?Answer
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.
What are the FDIC coverage limits?Answer
Basic FDIC Deposit Insurance Coverage Limits*
Account Type Coverage Limits
(owned by one person)
$250,000 per owner
(owned by two or more persons)
$250,000 per co-owner
IRAs and certain other
$250,000 per owner
$250,000 per owner per beneficiary subject to specific limitations and requirements
Corporation, Partnership and Unincorporated Association Accounts
$250,000 per corporation, partnership or unincorporated association
Employee Benefit Plan Accounts
$250,000 for the non-contingent, ascertainable interest of each participant
$250,000 per official custodian
How do depositors apply for FDIC insurance?Answer
Depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.
*These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.