FDIC Insurance Coverage for Forbright
The Federal Deposit Insurance Corporation (FDIC) is a United States government agency that insures deposits up to specific limits at FDIC-member banks. This insurance provides depositors with peace of mind, knowing that their funds are protected even if the bank fails.
To be eligible for FDIC insurance, a bank must meet certain requirements, including maintaining adequate capital and adhering to sound banking practices. Forbright Bank meets these requirements and is an FDIC-member bank.
Coverage Limits
The FDIC provides deposit insurance up to the following limits:
- Single ownership accounts: $250,000
- Joint ownership accounts: $500,000
- Revocable trusts: $250,000 per beneficiary
- Irrevocable trusts: $250,000 per trust
Eligibility Requirements
To be eligible for FDIC insurance, deposits must meet the following requirements:
- Deposited in an FDIC-member bank
- Owned by an eligible depositor, such as an individual, business, or government entity
- Not used as collateral for a loan
Types of Accounts Insured by Forbright
Forbright offers a range of deposit accounts, each with its own features and benefits. Not all accounts are eligible for FDIC insurance, so it’s important to understand the differences between insured and non-insured accounts.
Insured Accounts
FDIC insurance covers most types of deposit accounts, including:
- Checking accounts
- Savings accounts
- Money market accounts
- Certificates of deposit (CDs)
Non-Insured Accounts
Some types of accounts are not eligible for FDIC insurance, such as:
- Brokerage accounts
- Mutual funds
- Stocks
- Bonds
Benefits of FDIC Insurance for Forbright Customers
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that provides deposit insurance to depositors in FDIC-insured banks. Forbright Bank is an FDIC-insured bank, which means that deposits made at Forbright are protected by the FDIC up to the applicable limits.
FDIC insurance provides several important benefits to Forbright customers, including:
- Protection from financial losses: FDIC insurance protects depositors from losing their money if Forbright fails. In the unlikely event that Forbright fails, the FDIC will cover the insured deposits of its customers up to the applicable limits.
- Peace of mind: FDIC insurance provides peace of mind to depositors, knowing that their money is protected up to the applicable limits. This peace of mind can be especially valuable during times of financial uncertainty.
Coverage Limits
The FDIC provides deposit insurance up to the following limits:
- Individual accounts: $250,000 per depositor, per insured bank
- Joint accounts: $500,000 per joint account, per insured bank
- Retirement accounts: $250,000 per depositor, per insured bank, including IRAs and 401(k)s
It is important to note that these limits apply to the total amount of deposits held at an insured bank, not to each individual account. For example, if you have $100,000 in a checking account and $150,000 in a savings account at Forbright, your deposits are fully protected by the FDIC.
Limitations of FDIC Insurance for Forbright Customers
While FDIC insurance offers significant protection for depositors, it’s important to understand its limitations. There are certain circumstances where FDIC coverage may not apply, and it’s crucial to be aware of these exclusions to avoid potential financial losses.
Coverage Limits
FDIC insurance has coverage limits, which means that only a certain amount of deposits is insured. The standard coverage limit is $250,000 per depositor, per insured bank, for each account ownership category. This includes individual accounts, joint accounts, and certain other types of accounts.
Excluded Accounts
Not all accounts are eligible for FDIC insurance. Excluded accounts include:
- Brokered deposits, which are deposits placed through a broker or financial intermediary
- Investments, such as stocks, bonds, and mutual funds
- Annuities
- Certain types of retirement accounts, such as 401(k)s and IRAs
Avoiding Coverage Limits
To avoid exceeding FDIC coverage limits, it’s advisable to spread your deposits across multiple insured banks or consider using other financial products, such as money market accounts or certificates of deposit (CDs), which may offer higher insurance coverage.
How to Verify FDIC Insurance Coverage for Forbright
Ensuring that your deposits are FDIC insured is crucial for financial security. Verifying FDIC insurance coverage for Forbright is a simple process that can provide peace of mind.
There are several methods available to verify FDIC insurance coverage for Forbright:
Online Verification
- Visit the FDIC Bank Find tool.
- Enter Forbright’s name or bank charter number (35178).
- Review the results to confirm FDIC insurance coverage status.
Contact FDIC
- Call the FDIC toll-free at 1-877-275-3342.
- Provide Forbright’s name or bank charter number.
- An FDIC representative will confirm insurance coverage status.
Contact Forbright
- Visit Forbright’s website or contact their customer service.
- Inquire about FDIC insurance coverage for your account.
- Forbright can provide confirmation of insurance status.
