Banking is about trust. You want to know that your money is safe, protected, and accessible when you need it. That’s why FDIC insurance exists. It provides peace of mind, ensuring that your deposits are covered in the rare event of a bank failure.
At One Bank of Tennessee, we are an FDIC-insured institution, which means your funds are backed by the full faith and credit of the United States government.
What Is FDIC Insurance?
The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to protect bank customers from financial loss due to bank failures.
With coverage up to $250,000 for each depositor, each bank, and each ownership type, it covers deposit accounts, including savings accounts and checking accounts, certificates of deposit (CDs), and money market deposit accounts (MMDAs).1
Opening an account with a bank insured by the FDIC automatically causes this coverage to start. There is no application needed; your qualified deposits are safeguarded as soon as they are entered into your account and there is no further expense involved.
Even if a financial crisis occurs, your insured funds are guaranteed by the U.S. government, ensuring that your money remains secure.
What Accounts Are Covered?
FDIC insurance applies to traditional deposit accounts, including:
- Savings accounts
- Checking accounts
- CDs (Certificates of Deposit)
- MMDAs (Money Market Deposit Accounts)
- Cashier’s checks and money orders issued by the bank2
Investment products, such as life insurance policies, stocks and bonds, mutual funds, annuities, and cryptocurrency, are not covered by FDIC insurance. If you have funds in these types of accounts, they are subject to market fluctuations and carry their own risks.
How Much of Your Money Is Insured?
At every FDIC-insured bank, the FDIC guarantees up to $250,000 for each depositor under every ownership category. Your overall coverage may thus be influenced by the way your accounts are set up.
We recommend you review all your account types and use various ownership categories to maximize your FDIC coverage. Visit the FDIC’s Electronic Deposit Insurance Estimator (EDIE) Calculator to explore different options and potential coverage. Speak with one of our team members to discuss your options.
If you have accounts at different FDIC-insured banks, your coverage applies separately at each institution. This can be a useful strategy for those who hold more than $250,000 in deposits.
What Happens if a Bank Fails?
Bank failures are rare, but they do happen. If an FDIC-insured bank closes, the FDIC steps in to protect depositors. Typically, insured funds are available within a few days, either by transferring them to another insured bank or issuing a check for the insured amount.6
For deposits exceeding the FDIC insurance limit, the FDIC sells the bank’s assets to recover funds. While uninsured depositors may receive some portion of their funds, the process can take time and does not guarantee full recovery.
From its establishment until present day, the FDIC has honored its dedication to protect every dollar insured by the agency.
Can You Increase Your FDIC Coverage?
For those who hold more than $250,000 in deposits, there are ways to maximize FDIC insurance coverage:7
- Use different ownership categories: Deposits in joint accounts, certain retirement accounts, or trust accounts may qualify for additional coverage.
- Open accounts at multiple FDIC-insured banks: Each bank’s coverage limit applies separately.
- Check account structuring options: Depending on how accounts are titled and who is listed as an owner or beneficiary, you may qualify for higher total coverage.
To check your coverage, the FDIC offers an online tool called the Electronic Deposit Insurance Estimator (EDIE), which can help determine how much of your money is insured.
Why One Bank of Tennessee?
Since 1901, One Bank of Tennessee has been committed to providing secure, reliable banking services. As an FDIC-insured bank, we ensure that your deposits are protected under federal insurance guidelines.
Our banking options—including savings accounts and accounts and CDs—are designed to provide security and convenience while ensuring that your funds remain protected. Whether you’re managing daily expenses or planning for the future, your money is safe with us.
Beyond FDIC insurance, we take additional steps to protect your financial well-being. Our online banking platform uses state-of-the-art encryption and multi-factor authentication to keep your accounts secure. We also offer fraud protection tools to help you monitor your accounts and prevent unauthorized access.
Have Questions About FDIC Insurance?
Understanding how your deposits are protected is important. If you have questions about FDIC coverage, account structuring, or maximizing your insured deposits, our team is here to help. Contact your nearest One Bank of Tennessee branch or call us at (800) 368-2498 to learn more.
Sources
1. https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits
2. https://www.fdic.gov/resources/deposit-insurance
3. https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits
4. https://www.fdic.gov/financial-institution-employees-guide-deposit-insurance/joint-accounts
7. https://www.usnews.com/banking/articles/how-do-you-insure-funds-more-than-the-fdic-limit
FDIC: Electronic Deposit Insurance Estimator (EDIE): Calculator