Are Your Bank Accounts Safe? A Summary Of FDIC Insurance Coverage

By now, many of you have heard about the recent collapse of Silicon Valley Bank and the resulting instability in the banking industry, raising an alarming question of whether customer deposits held at banks are protected and to what extent. The Federal Deposit Insurance Corporation (the "FDIC") is an independent governmental entity that provides limited insurance coverage for customer deposits at qualifying banks in the United States in the event of a bank failure. The rules governing coverage amounts vary depending on whether the account is owned by one person, co-owners, through a trust or legal entity, among other factors. Below is a high-level summary of coverage for common types of accounts. For more comprehensive information about eligibility and coverage, please visit the FDIC website.