What is the difference between a savings bank and a savings institution that is FDIC insured?
“Government” FDIC insurance covers money in your savings, checking, or money market checking account for the amount of up to $100,000. The FDIC is technically not part of the governmental system, but one of those long arm beaureacratic long legs. Deposit insurance coverage is based on a variety of factors including how an account is titled and the type of account. For instance, retirement accounts held in an IRA are insured for a greater value than a non-retirement deposit account. Additionally, by altering the ownership of an account, it is possible for individual or multiple depositors to have coverage beyond $100,000. Finally, it should be noted that insurance is calculated “per depositor” and not “per account.” Therefore, a depositor may risk having uninsured deposits if the total amount deposited at a given institution is above the threshold amount.
