The Federal Deposit Insurance Corporation (FDIC) guarantees that bank deposits up to $250,000 (through December 31, 2013) are safe. All of your single accounts at the same FDIC-insured bank are added together, and the total is insured for up to $250,000. For retirement savings accounts, the limit for FDIC insurance is $250,000. All of your self-directed retirement accounts at the same insured bank are added together, and the total is insured for up to $250,000.
The National Credit Union Administration (NCUA) provides similar amounts of insurance for deposits in federally insured credit unions. The standard maximum insurance amount is $100,000, with a maximum of $250,000 of coverage for retirement accounts such as Roth and traditional IRAs and Keogh accounts. Through December 31, 2013, the maximum insurance limit on credit union accounts is $250,000.
In summary, as long as your deposits stay below the maximum amounts that are covered, your money is safe in a bank or credit union.
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