How Does FDIC Insurance Work With Online Banking?

FDIC Insurance is treated no differently wheter the account is online or offline. "The FDIC protects you against the loss of your insured deposits in the unlikely event that an FDIC-Insured Institution fails. If you or your family's deposit accounts at one FDIC-Insured Institution total $100,000 or less, your deposits are fully insured. If you or your family has more than $100,000 at one insured institution, you can still be fully insured if your accounts meet certain requirements. You can use EDIE to determine your insurance coverage beyond the basic $100,000 amount."

Here is an easier way to explain it:

If you are single, for every bank that you have an account with the FDIC will insure up to $100,000. This means if you use Bank A, when you add up the balances of your savings, checking, and CDs any amount over $100,000 is not covered. If bank declares banKruptcy and over all of your accounts you have $110,000. You are out $10,000.

If you're married or have a joint partner, you can get some killer coverage. You can actually get up to $400,000 of coverage between you. Here's how:

Account 1- Take out an account or several accounts in your name. That will get you up to $100,000 of coverage.

Account 2 - Have your husband, wife, or partner create an account or several accounts in their name. This will get you another $100,000 of coverage.

Account 3 - Create joint accounts with your husband, wife, or partner. Because they are in both of your names you get up to $200,000 of coverage.

Let see, That's:

Account 1- $100,000

Account 2- $100,000

Account 3- $200,000

A total of $400,000 of coverage.