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Overview of FDIC Insurance

As you know, the purpose of the FDIC is to insure your money in the event that your bank fails. The FDIC is backed by the full faith and credit of the United States government.

Deposits in an FDIC insured bank, like Pinnacle, are insured dollar-for-dollar up to the insurance limit. The basic insurance limit has increased temporarily to $250,000 per person, per insured bank. This increase will last until Dec. 31, 2009. In addition to the basic coverage, all non-interest bearing accounts, including both personal and business accounts, are fully insured for the entire amount in the deposit account. This unlimited coverage is temporary and will remain in effect for participating institutions until Dec. 31, 2009. Pinnacle will be participating in this program. The insurance covers the combined total of your savings, checking and other deposit accounts.

Deposit insurance is not increased, for example, by putting $250,000 into a savings account and $250,000 in a CD in the same bank. In that case, $250,000 is insured, not $500,000. However, deposits maintained in different categories of ownership are separately insured. Therefore, it is possible to have millions in deposits at one insured bank and still be fully insured.

The following lists shows what type of accounts are covered and not covered.

An experienced financial services professional can help you maximize your coverage depending on how your accounts are set up. If you are concerned about your level of coverage, contact your Pinnacle financial advisor.