Banking FAQ: FDIC Insurance, Opening and Closing Accounts, and Branch Visits

How much does FDIC insurance cover?

FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category. Ownership categories include single accounts, joint accounts, certain retirement accounts such as IRAs, trust accounts, employee benefit plan accounts, business accounts, and government accounts. All of your deposits in the same category at the same bank are added together.

See ownership category and FDIC insurance limit in our glossary.

Source: FDIC: Understanding Deposit Insurance

Do I need to sign up for FDIC insurance?

No. Depositors do not need to apply for FDIC insurance. Coverage is automatic whenever you open a deposit account at an FDIC-insured bank.

Source: FDIC: Financial Products That Are Insured

Which accounts does the FDIC insure, and which doesn't it?

The FDIC insures deposit products: checking accounts, savings accounts, money market deposit accounts, certificates of deposit (CDs), and prepaid cards that meet certain FDIC requirements. It does not insure stocks, bonds, mutual funds, annuities, life insurance policies, safe deposit boxes or their contents, U.S. Treasury bills, bonds, or notes, municipal securities, or crypto assets, even when you buy them through a bank.

Treasury bills are backed by the U.S. government instead; see Treasury bill.

Source: FDIC: Financial Products That Are Insured

How can I have more than $250,000 insured?

Deposits in different ownership categories, or at separately chartered FDIC-insured banks, are insured separately. For example, a single account and your share of a joint account at the same bank are each insured up to $250,000, and an IRA at that bank is insured separately from your checking and savings. Since April 1, 2024, trust accounts, including payable-on-death (POD) accounts, are insured up to $250,000 per beneficiary, with a maximum of $1,250,000 per owner at one bank. The FDIC's Electronic Deposit Insurance Estimator (EDIE) can calculate your coverage.

Try the FDIC's EDIE estimator. Banks that share a holding company can still be separate charters; each bank page on this site lists its FDIC certificate number.

Source: FDIC: Deposits at a Glance

How do I know if my bank is FDIC insured?

An FDIC-insured bank must display the official FDIC sign at each teller window, and you can look the bank up in the FDIC's BankFind Suite. Every bank and branch listed on BankNearMe.com comes from FDIC BankFind data, and each bank page shows its FDIC certificate number. Credit unions are insured by the NCUA instead.

Search for your bank or check FDIC BankFind.

Source: FDIC: When a Bank Fails

What happens to my money if my bank fails?

When a bank fails, the FDIC acts in two roles. As insurer, it pays depositors their insured deposits up to the insurance limit, including principal and interest. As receiver, it sells the failed bank's assets and settles its debts, including claims for deposits above the insured limit. According to the FDIC, no depositor has lost a penny of insured deposits since the FDIC was created in 1933.

See bank failure in our glossary and the FDIC's failed bank list.

Source: FDIC: When a Bank Fails

Are credit unions FDIC insured?

No. Federally insured credit unions are covered by the National Credit Union Administration's Share Insurance Fund, which also insures up to $250,000 per member, per insured credit union, for each account ownership category.

See credit union in our glossary.

Source: NCUA: Share Insurance Coverage

What information do I need to open a bank account?

Federal rules require banks and credit unions to verify your name, date of birth, address, and an identification number. The identification number can be a Social Security number, an Individual Taxpayer Identification Number (ITIN), a passport number and country of issuance, an alien identification card number, or another government-issued identification number.

The underlying rule is the Customer Identification Program requirement in 31 CFR 1020.220.

Source: CFPB: Checklist for opening a bank or credit union account

What ID do I need to open an account?

Many banks require a U.S. or state government-issued photo ID, such as a driver's license, U.S. passport, or military ID. If you don't have one, some banks and credit unions accept foreign passports and consular IDs such as the Matricula Consular card. You generally also need one of the following: your Social Security card, a bill with your name and address on it, or your birth certificate.

Source: CFPB: Checklist for opening a bank or credit union account

How much money do I need to open a bank account?

According to the CFPB, you usually need an initial deposit between $25 and $100 to open a checking or savings account. Ask about the minimum balance requirement too: it's the amount you must keep in the account to avoid or reduce fees, and it may differ from the opening deposit.

Comparing savings accounts? See current national average rates.

Source: CFPB: Checklist for opening a bank or credit union account

Can I open a bank account without a Social Security number?

Yes. Federal identification rules accept an ITIN, a passport number and country of issuance, an alien identification card number, or another government-issued number in place of a Social Security number. To open an interest-bearing account, though, the CFPB says you need a Social Security number or an ITIN, because interest is taxable.

Source: CFPB: Checklist for opening a bank or credit union account

Why was I denied a checking account, and what can I do?

Banks often check reports from checking account reporting companies such as Chex Systems and Early Warning Services. Negative items include an unpaid negative balance on an account the bank closed (an involuntary closure), suspected fraud or a history of bad checks, or a joint account with someone who had those problems. You can request one free report every 12 months from each nationwide checking account reporting company, plus a free report if you received an adverse action notice, and dispute any errors.

Some banks and credit unions offer Bank On certified accounts designed to be safe and affordable.

Source: CFPB: Why was I denied a checking account?

When can I use money I deposit?

In general, these deposits must be available by the next business day: cash deposited in person, checks of $225 or less deposited in person, electronic payments such as wire transfers and ACH deposits, government, cashier's, and certified checks deposited in person or at the bank's own ATMs, and personal checks drawn on the same bank and deposited in person. Banks may hold deposits longer in some cases, for example if the account has been open less than 30 days.

See funds availability in our glossary.

Source: CFPB: How long can a bank or credit union hold funds I deposited?

How do I close a bank account without problems?

Open and fund your new account first. Move your direct deposits and automatic payments, give pending checks and payments time to clear, then transfer the remaining balance and ask the bank to confirm in writing that the account is closed. Save your final statements and tax forms before you lose online access.

Details on stopping automatic payments, negative balances, and tax forms are below.

How do I stop automatic payments from my old account?

Contact the company you're paying to change or cancel the payment. Under Regulation E, you can also stop a preauthorized electronic payment by telling your bank, orally or in writing, at least three business days before the scheduled date; the bank may ask for written confirmation within 14 days. Banks generally charge fees for stop payment orders.

The CFPB also explains how to stop automatic payments.

Source: CFPB: Regulation E, 12 CFR 1005.10

What happens if I close or abandon an account with a negative balance?

If you leave an unpaid negative balance, such as an overdraft, and the bank closes the account, that involuntary closure can be reported to checking account reporting companies. Banks use those reports to decide whether to open an account for you, so it can make opening a new account harder. Bring the balance to zero before closing.

See overdraft in our glossary.

Source: CFPB: Why was I denied a checking account?

Will I still get a tax form after closing an account?

Yes, if it applies. Banks must file Form 1099-INT for anyone they paid at least $10 in interest during the year, so you may get one from your old bank for the year you closed the account.

Source: IRS: About Form 1099-INT

Can I close a CD before it matures?

Usually, but most CDs charge an early withdrawal penalty, often a set number of months of interest. The bank must disclose the penalty in the account terms under the Truth in Savings Act's Regulation DD, so check it before you open or close a CD.

See early withdrawal penalty, or model a CD with our CD calculator.

Source: CFPB: Regulation DD (Truth in Savings)

What happens to an account I stop using?

If there is no owner activity for a period set by state law, the bank must turn the money over to the state as unclaimed property. You can search for and claim it for free through your state's official unclaimed property program.

See unclaimed property in our glossary.

Source: NAUPA: Unclaimed.org

What should I bring to a bank branch?

Bring a government-issued photo ID, such as a driver's license, passport, or military ID. To open an account, also bring your identification number (such as a Social Security number or ITIN), something that shows your name and address such as a bill, and money for the opening deposit, often $25 to $100. For deposits or withdrawals, bring your debit card or account number.

Find a branch near you.

Source: CFPB: Checklist for opening a bank or credit union account

Why does the bank ask for ID when I deposit or withdraw more than $10,000 in cash?

Federal law requires financial institutions to report cash transactions over $10,000 by or for one person, including multiple cash transactions that add up to more than $10,000 in one day, on a Currency Transaction Report. To do this, the bank must collect identifying information such as your Social Security number and a driver's license or other government ID. Large cash transactions are not prohibited, but breaking them into smaller amounts to avoid the report, called structuring, is a federal crime.

Source: FinCEN: Notice to Customers, A CTR Reference Guide

Does BankNearMe.com show branch hours?

No. Our branch listings come from FDIC BankFind data, which includes each office's name, address, and service type but not its opening hours. Check the bank's own website or call the branch before you go. Banks commonly close on Federal Reserve holidays.

See our bank holiday schedule for 2026 and 2027.

Source: FDIC BankFind Suite

Where do I find my bank's routing number?

It's the nine-digit number at the bottom left of your checks, and it's usually shown in your bank's app or website. Some large banks use different routing numbers by state or for wire transfers, so confirm with your bank before setting up a payment.

See routing number in our glossary.

Source: ABA: Routing Number