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FDIC Insurance Covers $100K Per Legal Entity Per Bank

The FDIC insurance limit now covers $250,000 per depositor. (subject to ownership structures)

I received the following question after the reader saw my post about FDIC and NCUA deposit insurance [3]:

Jim, I have an FDIC insurance question for you. Bank of America has a 4mo 5.10% high yield cd that I’d like to put my funds in. I have more than 100k, if I split it up between myself, my wife, and then we open one together, will I be covered by the fdic insurance? Thanks,

It sounds like there will be three ownership types on the CDs, you, your wife, and a joint ownership scenario and in that case I believe your CD’s will each be individually covered under FDIC insurance up to $100k.

If you instead purchase three different CDs as an individual and for some reason it were to become insolvent, a maximum of $100k would be insurance regardless of how many accounts you have. It’s the legal ownership that matters and each type gets up to $100k.

Now, take that advice for what it’s worth because I’m not a banker and my opinion is based on what I read off the FDIC website, which I may have inaccurately interpreted.