After IndyMac Bank was shut down on Friday, I’ve heard and read a lot of misinformation about FDIC insurance. Everyone means well but nobody seems to want to spend the time getting their info right. The most basic premise behind FDIC insurance is that you’re insured for up to $100,000 per insured bank. There are circumstances in which individuals can be insured for over $100,000, and if you have that much money in the bank, you owe it to yourself to know the FDIC rules, especially if you’re panicking over IndyMac’s failure.
Here’s my attempt at flowcharting how FDIC insurance works. This is a simplication of the most common FDIC rules. If you have any questions or doubts about any of this information, you should contact the FDIC.