How does federal insurance on bank accounts work?
Answers | 1
Currently, deposit insurance guarantees the safety of a depositor's account in member banks up to $250,000. The FDIC is funded by premiums that banks pay for deposit insurance coverage; and from earnings on U.S. Treasury securities holdings.
Since the start of FDIC insurance in 1934, no depositor has lost any insured funds as a result of a failure.
For a full explanation of how Deposit insurance works and the types of qualifying deposits, please visit the website: