The FDIC provides insurance coverage on deposit accounts based on certain ownership categories for FDIC-insured banks. Refer to the frequently asked questions below to learn more about FDIC insurance and how to ensure your deposit balances are covered. For more information, visit the FDIC site. To calculate your coverage, use the FDIC's EDIE the Estimator calculator.
General Questions Regarding FDIC InsuranceWhat is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.
Is Chevy Chase Bank an FDIC-insured bank?
Yes. Chevy Chase Bank is an FDIC-insured bank. You will find the official FDIC insurance sign at each teller window in our branches and on our Web site.
What type of accounts does the FDIC insure?
FDIC insurance covers all types of deposits received at an insured bank, including deposits in checking and savings accounts, money market deposit accounts, and time deposits such as certificates of deposit (CDs).
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were bought from an insured bank.
The FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.
Who is eligible for FDIC deposit insurance?
Any person or entity can have FDIC deposit insurance in an insured bank located in the United States. A person does not have to be a U.S. citizen or resident to have deposits insured by the FDIC.
What are the FDIC insurance coverage limits?
FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest. The basic insurance limit is $250,0001 per depositor, per insured bank.
Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank.
Deposits maintained in different categories of legal ownership at the same bank can be separately insured. Therefore, it is possible to have deposits of more than $250,000 at one insured bank and still be fully insured.
All retirement accounts listed above owned by the same person in the same FDIC-insured bank are added together and the total is insured up to $250,000.
Do I have to apply for FDIC insurance coverage?
No. Insurance coverage is provided to you automatically up to the coverage limits.
Do I have to pay a premium for insurance coverage?
No. You do not pay a premium for insurance coverage.
What are the categories of ownership?
The FDIC recognizes eight ownership categories for basic coverage. These ownership categories are: single accounts, certain retirement accounts, joint accounts, revocable trust accounts, irrevocable trust accounts, employee benefit plan accounts, corporation/partnership/unincorporated association accounts and government accounts.
Learn more about ownership categories, including examples of how insurance coverage is determined based on ownership categories and additional requirements for coverage beyond the basic $250,000 insurance amount.
What is meant by "Certain Retirement Accounts"?
The following types of retirement plan deposits qualify for coverage as "certain retirement accounts":
I have a single account, how much FDIC insurance do I have?
All single accounts owned by the same person at the same insured bank are added together and the total is insured up to $250,000.
Learn more about FDIC insurance on single accounts, including single accounts where another person has the right to withdraw deposits from the account. To calculate your coverage, refer to the FDIC calculator - EDIE.
I have a joint account, how much FDIC insurance do my joint account owner and I have?
If all co-owners have equal rights to withdraw funds from a joint account, a co-owner’s shares of all joint accounts at the same insured bank are added together and the total is insured up to $250,000.
Learn more about FDIC insurance on joint accounts, including examples of coverage on joint accounts. To calculate your coverage, refer to the FDIC calculator - EDIE.
What is my coverage on deposit accounts that are not held as a single or joint ownership?
The basic FDIC insurance coverage1 is provided below for each of the ownership types. The coverage limits shown below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank.
Visit the FDIC site for more information about FDIC insurance coverage on the ownerships for accounts that are not held in a single or joint ownership.
I have multiple accounts worth more than $250,000 in deposits at one financial institution, how much insurance coverage do I have?
For customers with accounts in multiple categories at a single financial institution, FDIC coverage is based on the titling of the accounts and the category of accounts, not the number of accounts. For example, if you own a checking account and a CD titled in your own name as a single owner, you will receive a total of $250,0001 of combined coverage for both accounts.
But if you also have a joint account (which is a separate owernship category from individual accounts), you could receive an additional $250,0001 of insurance for the funds held in the joint account.
And, for the peace of mind that comes with additional FDIC insurance up to $50 million, our CDARS® CDs are a great option. Learn more.
Why should I consider CDARS® since I now have greater FDIC coverage?
By placing deposit balances into CDARS, you will enjoy both the peace of mind provided by full FDIC insurance and the added benefit of a higher rate of return on your balances. Learn more about CDARS.
How do I know whether my deposits are covered?
To determine whether your deposits are covered, use the FDIC's EDIE the Estimator calculator.
Before you begin, make a list all of your Chevy Chase Bank deposit accounts, including checking, savings, money market, certificates of deposit, and retirement accounts. Include the balances and account titles, which are listed on your account statements. Then, follow the simple steps to calculate your coverage. (Note: Your information stays safe, as you do not need to provide any real account numbers or confidential information.)
It also is important to note if your checking account(s) earn an interest rate of 50 basis points or less, to be considered a "noninterest-bearing transaction account" based on the Transaction Account Guarantee Program.
EDIE the Estimator has been updated to incorporate the final rules of the Temporary Liquidity Guarantee Program.
What is the Temporary Liquidity Guarantee (TLG) Program?
In November, 2008, the FDIC adopted the Temporary Liquidity Guarantee Program (TLG Program), which aims to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and by providing full coverage of noninterest-bearing deposit transaction accounts, regardless of dollar amount. This second part of the TLG Program is referred to as the Transaction Account Guarantee Program.
Chevy Chase Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2009, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. For purposes of the Transaction Account Guarantee Program, the definition of a "noninterest-bearing transaction account" includes checking accounts earning no interest or an interest rate of 50 basis points (.50%) or less, and Interest on Lawyers Trust Accounts (IOLTAs), regardless of interest rate. This definition does not encompass interest-bearing savings or money market deposit accounts. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.
Is Chevy Chase Bank participating in the Transaction Account Guarantee Program?
Yes, Chevy Chase Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2009, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. For purposes of the Transaction Account Guarantee Program, the definition of a "noninterest-bearing transaction account" includes checking accounts earning no interest or an interest rate of 50 basis points (.50%) or less, and Interest on Lawyers Trust Accounts (IOLTAs), regardless of interest rate. This definition does not encompass interest-bearing savings or money market deposit accounts. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.
What accounts are covered under the Temporary Liquidity Guarantee Program?
The FDIC broadened its guarantee of noninterest-bearing transaction accounts to include checking accounts earning interest rates of 50 basis points or less. The rule also covers Interest on Lawyers’ Trust Accounts (IOLTAs), regardless of dollar amount.2
What is the coverage amount for accounts in the Temporary Liquidity Guarantee Program?
The TLG Program provides unlimited insurance coverage for non-interest bearing deposit transaction accounts.2
How are balances in sweep accounts treated under the TLG Program?
The FDIC stated that funds may be swept or transferred from a noninterest-bearing transaction account to another type of deposit or non-deposit account, and these funds will be treated as being in the account to which the funds were transferred. Therefore, if the funds are transferred to a money market account or investment account, they may not be fully covered under the FDIC insurance guidelines.
What if I have some money in interest-bearing accounts and some in noninterest-bearing accounts? How much is covered?
Coverage of noninterest-bearing transaction accounts under the Transaction Account Gurantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.
1 The current standard maximum amount of FDIC insurance coverage is $250,000 per depositor. On January 1, 2014, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner.
2 Unlimited deposit insurance coverage is available through December 31, 2009, for non-interest bearing transaction accounts at institutions participating in FDIC's Transaction Account Guarantee Program.
CDARS is a service mark of Promontory Interfinancial Network, LLC. Funds may be submitted for placement only after a depositor enters into an agreement with us.