What is the maximum amount insured by the Federal Deposit Insurance Corporation for each depositor?

The maximum amount insured by the Federal Deposit Insurance Corporation (FDIC) for each depositor is $250,000. This insurance limit is designed to protect depositors by ensuring that if a bank fails, their deposits are safeguarded up to this amount. The FDIC insurance covers various types of accounts, including savings accounts, checking accounts, and certificates of deposit (CDs), as long as they are held at an FDIC-insured institution.

This limit of $250,000 applies per depositor, per insured bank for each account ownership category, meaning that a depositor could potentially have more than one account type at the same bank, all insured within the limit. Understanding this limit ensures that depositors know how much of their funds are protected and can help them in making financial decisions regarding large sums of money and how they manage their accounts across different institutions.