How Do You Insure Funds More Than the FDIC Limit?

How Do You Insure Funds More Than the FDIC Limit?

As per the ownership category and FDIC-insured bank, the standard coverage limit of insurance is $250,000 and if your deposits are exceeding this limit, you may get in trouble. So, how do you insure funds more than the FDIC limit? What are the steps you can take to do this? Here, we have discussed some methods that will help you to insure more than $250,000.

For the past four years, there are only a few bank failures recorded. Although bank failures are rare, it’s necessary to take precautions to ensure that all deposits should be safe.

In order to insure funds more than the FDIC limit, you can do various things like opening accounts at more than one institution or in different ownership categories, use a network, and open a brokerage deposit account.

We have disclosed more about these steps in detail which you will further understand by reading the full article.

How Do You Insure Funds More Than the FDIC Limit?

Deposit insurance is of two main types. The first one is the Federal Deposit Insurance Corp. which insures deposits at the banks, and the second is The National Credit Union Administration. It ensures deposits at credit unions.

How Do You Insure Funds More Than the FDIC Limit?

How Does FDIC Coverage Work?

During the great depression, many banks failed and it resulted in the money loss of millions of investors in the stock market. Due to this, the FDIC was established in 1933 to build up the confidence in the public that they had lost after the great depression. Now, because of FDIC, your money gets protected if your bank is federally insured.

We can understand more about the working of FDIC with an example of a normal guy who saves money in a single bank. Now, considering he has a total of $350,000 in deposits in which there are $50,000 in a checking account, $100,000 in a savings account, and $200,000 in CDs. Now, if your bank fails, you’ll get $0, but if there is FDIC, you’ll get insurance up to $250,000.

How Can You Insure More Than $250,000?

There are several conditions that can lead to putting more money in a bank. Such as

  • Savings to buy a new home or sell your old house.
  • Receiving inheritance.
  • You are a businessman.
  • You might be repositioning investments before retirement.
  • You have trust accounts

To insure over $250,000 in deposits, there are some steps.

  • Open Accounts at More Than One Institution

This strategy is really helpful but only if you have definite accounts because if you open too many bank accounts, it will get difficult for you to keep track of all of them. You can start with a checking account, add a money market account, or open a savings account. If you own a business in various countries, you can also add a business account for small businesses and an international currency account for large businesses.

  • Open Accounts in Different Ownership Categories

You can qualify to insure over $250,000 in deposits if you have multiple accounts. These types of accounts include joint account, retirement account, business account, trust account, etc. However, in order to open these accounts, you need to qualify for certain requirements.

  • Use a Network

Using a network is also one of the best options to insure funds more than the FDIC limit. This is because the network will help you insure large amounts such as a MaxMyInterest checking account that tries to maximize interest earnings.

  • Open A Brokerage Deposit Account

You can open a brokerage deposit account as brokerage companies also offer FDIC-insured accounts. In order to open a brokerage deposit account, you have to first determine the type of account you need, then compare the costs. After that, consider the offered services, decide on a brokerage firm, fill the account application, and start finding the accounts.

Consider Where You’re Putting Your Money?

There is no doubt that FDIC-insured accounts help in keeping your money safe, but usually, they don’t pay much interest. Apart from it, if you are looking for a higher return, consider investing in opportunities that offer safety for the likelihood of a larger reward.


This was the complete information about how to insure funds more than the FDIC limit. However, the FDIC working is different than most people think.

Featured Image Credit: Bankrate

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