Ways to Protect Money in Bank Accounts

To utilize the protective tools allowed by bank accounts, review the following steps:

1. Consider banking with a larger, more financially stable bank to reduce the risk of the bank failing.

2. Make sure the accounts are Federal Deposit Insurance Corporation (FDIC) insured. FDIC insurance protects the money depositors place in insured banks. FDIC insurance covers $250,000 of deposits, per person, per bank, per ownership category.

3. Open “Joint” accounts at the FDIC-insured bank. Since FDIC insurance is $250,000 per person, joint accounts are insured for up to $500,000 total.

4. Once your joint account reaches a value of $500,000, repeat this process at a new bank. The new bank will start a new $500,000 FDIC insurance limit.