FDIC insurance is the federal protection that keeps your bank deposits safe if a bank fails. Here is what it covers, what it does not, the $250,000 limit, and how to make sure every dollar you hold stays protected.
The FDIC — the Federal Deposit Insurance Corporation — is an independent agency of the United States government. It provides federal deposit insurance, which means that if an FDIC-insured bank fails, your covered deposits are protected and paid back, up to the insured limit, by the FDIC rather than lost.
This protection is automatic. You do not apply for it, and you do not pay for it directly — if your bank is FDIC-insured, your eligible deposits there are covered the moment you open the account. Since the FDIC was created, no depositor has lost a penny of FDIC-insured funds.
The standard coverage amount is $250,000 per depositor, per insured bank, per ownership category. Understanding those three phrases is the key to knowing exactly how much of your money is protected. RMO Bank deposit accounts are FDIC-insured up to applicable limits.
FDIC insurance covers deposit products at insured banks. That includes:
What FDIC insurance does not cover is just as important. It does not protect investments, even when you buy them through a bank. Stocks, bonds, mutual funds, annuities, life insurance policies, and crypto assets are not FDIC-insured — they can lose value, and that risk is not covered. The contents of a safe deposit box are not insured by the FDIC either. FDIC insurance is strictly for deposit accounts.
It also covers only losses caused by an insured bank failing. It is not protection against fraud or theft on your account — that is handled separately by your bank’s fraud protection. RMO checking includes fraud protection as standard, on top of FDIC coverage.
Because the limit is “per depositor, per insured bank, per ownership category,” you can be insured for far more than $250,000 — you just need to know how the limit is sliced:
Some providers do not hold deposits directly — instead they deliver FDIC-insured deposits through one or more Partner Banks. RMO Bank deposits can be held this way: some banking services and deposits are provided through partner banks, and your RMO Bank deposits are FDIC-insured up to applicable limits. If you ever expect to hold more than $250,000, it is worth confirming exactly which insured banks hold your funds so you know your coverage.
FDIC insurance covers deposit accounts at insured banks: checking, savings, money market deposit accounts, and certificates of deposit (CDs). Standard coverage is $250,000 per depositor, per insured bank, per ownership category. It protects your money if the insured bank itself fails.
FDIC insurance does not cover investments, even when bought through a bank. Stocks, bonds, mutual funds, annuities, life insurance policies, and crypto assets are not FDIC-insured and can lose value. FDIC insurance applies only to deposit products at insured banks.
Yes. The $250,000 limit applies per depositor, per insured bank, per ownership category. By holding deposits in different ownership categories at the same bank (such as single, joint, and certain retirement accounts), or by spreading deposits across separate insured banks, a depositor can be insured well beyond $250,000.
Yes. RMO Bank deposit accounts are FDIC-insured up to applicable limits. Some banking services and deposits may be provided through partner banks that are Members FDIC. Standard coverage is $250,000 per depositor, per insured bank, per ownership category.
Now that you know your deposits are protected, these guides help you put them to work:
