The history of FDIC insurance limits
The Federal Deposit Insurance Corp. (FDIC) standard insurance limit hasn’t changed in more than a decade. And the FDIC insurance limit has only increased seven times in around 90 years.
It’s changed for different reasons over the years. For instance, in 1980 it more than doubled to $100,000 in an effort to help banks retain CD deposits and get new deposits, according to the FDIC.
Most recently, FDIC insurance was increased temporarily in October 2008, shortly after Washington Mutual became the largest bank to fail. So a banking crisis can cause the FDIC deposit insurance limits to increase. The $250,000 standard insurance per depositor, per insured bank for each account ownership category that we’re used to increased permanently to that amount in July 2010.
Here’s a look at the history of FDIC limits:
| Date | Deposit Insurance Amount |
|---|---|
| June 16, 1933 | $2,500 |
| June 16, 1934 | $5,000 |
| Sept. 21, 1950 | $10,000 |
| October 1966 | $15,000 |
| Dec. 23, 1969 | $20,000 |
| Oct. 28, 1974 | $40,000 |
| March 31, 1980 | $100,000 |
| July 21, 2010* | $250,000 |
Source: FDIC
*The deposit insurance amount was temporarily increased to $250,000 in 2008.
Here’s how much of your money is FDIC insured
Currently, the standard insurance amount is $250,000 per depositor, per insured bank for each account ownership category, according to the FDIC’s website.
The account ownership category portion of that wording is important because it allows you to get more FDIC insurance at that FDIC-insured bank.
For instance, a husband and wife (though the two people don’t need to be married) could each have $250,000 in their individual accounts and $500,000 in a joint account and have $1 million worth of FDIC insurance at a single bank. This example assumes that this is all the money that they have at that FDIC-insured bank.
Bottom line
FDIC limits don’t change often. But after more than a decade of the FDIC deposit insurance amount being up to $250,000 per depositor, per FDIC-insured bank per FDIC ownership category, increasing FDIC insurance in 2023 could be on the table. Aside from bank failures, inflation could be another reason to increase the FDIC insurance limit sometime in the future. In the meantime, you’ll want to make sure to stay within the current limits so your funds will be protected.
