So, Your Funds are FDIC Insured... What Does That Mean?

February 13th, 2018


You deposit money into your First Interstate Bank account knowing your funds will be there when you want to withdraw them. You’re assured your money is safe because your account is covered by the FDIC. What does this really mean? 

What is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) was established in 1933 as a result of the Great Depression. It was created to ensure the United States will never suffer another all-encompassing economic downfall. All state and national banks—including First Interstate Bank—are required to be insured by the FDIC, and no one has lost a penny since this government-backed insurance has been in place. Rest assured, all of your savings and checking accounts are covered by the FDIC here at First Interstate.

What does FDIC insurance cover?

When you deposit money into a bank, FDIC insurance makes sure you get back the funds in your deposit accounts should that bank fail or close. Coverage is for:

  • Checking accounts
  • Savings accounts
  • Money Market Accounts
  • Certificates of Deposit
  • Individual Retirement Accounts (IRAs)
  • Trust accounts

How much coverage is available?

The FDIC will cover up to $250,000 per depositor, per insured bank. Some situations allow for additional coverage, such as IRAs and joint accounts. For example, IRAs are separately insured up to $250,000. So, if you have money in a savings account and an IRA at First Interstate Bank, your funds are insured up to $500,000.

What is not covered?

FDIC insurance does not cover some bank-offered products, such as stocks, bonds, mutual funds, life insurance policies, annuities, securities, or the contents of a safe deposit box.

Where do FDIC funds come from?

The FDIC and its reserves are not funded by public funds. Member banks pay insurance dues that are the FDIC's primary source of funding. The FDIC also has a $100 billion line of credit with the United States Department of the Treasury. 

Learn More about the FDIC

Information is for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author.