FDIC Insurance Explained

In this article we’ll cover:

What is FDIC Insurance?
Other financial products. Are they covered?
How does FDIC Insurance protect bank customers?

What is FDIC Insurance?

You’ve probably seen the signs that say: “Each depositor insured to at least $250,000.” Have you ever thought about what that sign really means?

The Federal Deposit Insurance Corporation (FDIC) was formed to protect the money deposited into accounts at banks covered by FDIC insurance. That means your money is protected up to $250,000 per depositor, per insured bank, for each account category.

FDIC coverage separates insured accounts into different categories, such as single accounts, joint accounts, certain retirement accounts and others. These categories cover checking and savings accounts, money market deposit accounts and certificates of deposit. As an FDIC Member, the coverage is automatic – so you don’t need to apply.

“Cornerstone Bank has a long history of offering financial services in the Dakotas. During that time there have been numerous financial crises including most recently the Great Recession in 2008 and economic uncertainty during the Covid-19 pandemic,” said Gary Petersen, Chairman. “Cornerstone Bank has shown resiliency because of strong leadership and adhering to conservative banking principles. As an FDIC insured bank, we fully subscribe to the regulatory framework that has kept the banking industry, particularly community banks, safe and sound for decades.”

What about other financial products?

Even if they are invested through the bank, other financial products like stocks, bonds, mutual funds and securities are not covered .

Talk with one of our bankers to explore ways to set up your accounts for maximum FDIC coverage. We’re here to help keep your money secure and protected.

How does FDIC Insurance protect bank customers?

The FDIC insures up to $250,000 in eight separate account categories per depositor per bank.
In the 88-year history of the FDIC, no one has ever lost a penny of an insured deposit.
The banking industry completely funds the FDIC, not taxpayer dollars.
The banking industry knows that a strong FDIC and deposit insurance fund are essential to the banking system. Banks stand ready to do whatever it takes to ensure the health of the fund and strength of the FDIC.

To learn more check out this video from the FDIC. Have more questions or want to calculate your FDIC coverage? Click here.