Deposit Insurance - Types of Bank Deposits | DICGC (2024)

FAQs

Deposit Insurance - Types of Bank Deposits | DICGC? ›

On the basis of purpose they serve, bank deposit accounts may be classified as follows: Savings Bank Account. Current Deposit Account. Fixed Deposit Account.

On the basis of purpose they serve, bank deposit accounts may be classified as follows: Savings Bank Account. Current Deposit Account. Fixed Deposit Account.

Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.

This is their only account at this IDI and it is held as a “joint account with right of survivorship.” While they are both alive, they are fully insured for up to $500,000 under the joint account category.

The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank.

It's also important to keep FDIC limits in mind. Anything over $250,000 in savings may not be protected in the rare event that your bank fails.

The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.

Where do wealthy people put their money if not in the bank? ›

Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.

Note on Beneficiaries: While some self-directed retirement Accounts, like IRAs, permit the owner to name one or more beneficiaries, the existence of beneficiaries does not increase the available insurance coverage.

The FDIC refers to these different categories as “ownership categories.” This means that a bank customer who has multiple accounts may qualify for more than $250,000 in insurance coverage, if the customer's funds are deposited in different ownership categories and the requirements for each ownership category are met.

FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit.

A deposit is a sum of money kept in a bank account. The two types of deposits are demand deposits and time deposits. Demand deposit accounts include checking accounts, savings accounts and money market accounts. Time deposit accounts include certificate of deposit (CD) accounts and individual retirement accounts.

If you're holding a check and wondering about the easiest ways to deposit it, several options are available to make the process hassle-free. You can deposit a check via mobile deposit, at an ATM or by visiting your bank or credit union.

You can deposit cash by physically visiting a local branch of your bank. You can deposit funds into your bank account through ATMs as well. You can deposit funds into an online bank account via wire transfers or money orders. A deposit slip can help you transfer funds into your bank account via cash or cheque.