maximizing FDIC insurance

Maximizing FDIC Insurance: Get the max out of your coverage

Have you ever wondered what Federal Deposit Insurance Corporation (FDIC) insurance was, how it works and even better how to maximize it? Great you are in the right place. The FDIC is an independent agency of the government that protects the funds that you place into banks. But remember not all banks or financial companies are FDIC insured. Live Oak Bank is FDIC insured.

Now that you know what FDIC insurance is, we need to look at what’s covered. Checking, Savings, Certificates of Deposit and Money Market Deposit Accounts are all included and insured by the FDIC.

Good news is that you can maximize your coverage at an FDIC insured bank.



  1. Different Account Ownership Categories: It sounds complicated, but it means different types of accounts such as individual, joint, or revocable trust accounts. Business accounts are covered too. Deposits held in different ownership categories are separately insured so that you can get more than $250,000 in coverage at the same financial institution.
  2. Multiple Beneficiaries Split Equally: Under the revocable trust account ownership category, the FDIC insures up to five unique beneficiaries, totaling $1,250,000, per account owner.
  3. Multiple Banks: Once you have maximized your coverage at one bank, you can gain additional coverage from another if needed.

Let’s use an example
Carl in North Carolina has $300,000. He wants to make sure all of the money he deposited is insured. He can leverage any of the three options outlined above. Since Carl is married, he realizes the most natural solution is to open a joint account with an FDIC insured bank. With that joint account, he can keep increasing his savings up to $500,000 since each owner is FDIC insured up to $250,000.