FYI about the FDIC

You may have asked yourself, what is the FDIC anyway and what does it mean to me? To put it simply, it's the organization that protects your money. Read below to learn more.

What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government created to protect depositors in the event that a bank fails and cannot refund their money. It is, literally, an insurance policy that participating banks pay for to protect the consumer. If a bank for any reason is unable to reimburse depositors, the FDIC steps in and does it for the bank—up to $250,000 per account, per ownership type (single or joint).

Are deposits at ING DIRECT insured by the FDIC?
Yes. Deposits at ING DIRECT are insured through FDIC membership. You'll find us registered under the name of ING Bank, fsb, located in Wilmington, Delaware. Our certificate number is 35489. You can learn more about the whole process at www.fdic.gov.

What types of deposits are covered by the FDIC?
Deposits in an Orange Savings Account, Electric Orange, Orange CD, IRA Savings, IRA CD, Business Savings Account and Business CD are all covered.

How much of my deposits are insured?
Deposits are insured by the FDIC for up to $250,000 per depositor. A single account is insured up to $250,000. Joint accounts are 50/50 ownership and insured up to $250,000 for each individual on the account, equaling $500,000 in total.

IRA deposits at ING DIRECT are FDIC insured up to $250,000 per plan depositor. This includes all IRA Savings and CDs combined within each Traditional and Roth Plan and is in addition to the $250,000 non-IRA FDIC insurance.

Accounts that are registered in a Living Trust are insured up to $250,000 per account. This is in addition to the $250,000 per depositor coverage in accounts that are not registered in a Living Trust.

See below for different scenarios.

So what if I have a lot of accounts?
The maximum insurance is always the same, regardless of the number of accounts you have. You can have as many accounts as you'd like, but only $250,000 total of your individual accounts and half of your joint accounts up to $250,000 total will be covered.

Does that mean that two people can be insured at the same bank up to $1,000,000?
Yes. If two people each have a single account, they'll each be covered for up to $250,000. Then, if they have a joint account together, they'll each be covered for up to $250,000 (or up to $500,000 combined coverage), which adds up to a total of $1,000,000 in combined FDIC insurance coverage for the two people.

What if I have accounts in other banks?
It starts all over again. You'll be entitled to an entirely new insurance coverage on deposits per ownership type, meaning individual and joint.

Single accounts are FDIC-insured up to $250,000.

Account Owner	Deposit Type	Account Balance
Jane	Orange Savings Account	$110,000
Jane	Electric Orange	$65,000
Jane	Orange CD	$100,000
Total Deposits		$275,000
Amount Insured		$250,000
Amount Uninsured		$25,000

Joint accounts are 50/50 ownership and FDIC-insured up to $250,000 for each individual on the account, equaling $500,000 in total.

Account Owner	Deposit Type	Account Balance
Jane & John	Orange Savings Account	$190,000
Jane	Electric Orange	$115,000
Jane	Orange CD	$135,000
Total Deposits		$440,000
Amount Insured		$440,000

IRA deposits, including all IRA Savings accounts and CDs combined within each Traditional and Roth Plan, are FDIC insured up to $250,000 per plan depositor. This is in addition to the $250,000 non-IRA FDIC insurance.

Account Owner	Deposit Type	Account Balance
John	IRA Savings	$180,000
John	IRA CD	$40,000
Total Deposits		$220,000
Amount Insured		$220,000

A "couple" can be insured up to $1,000,000 at a bank, $250,000 for each individual account and $500,000 ($250,000 each) for a joint account.

Account Owner	Deposit Type	Account Balance
Jane	Orange Savings Account	$250,000
John	Electric Orange	$250,000
Jane & John	Orange CD	$500,000
Total Deposits		$1,000,000
Amount Insured		$1,000,000

Accounts registered in a Living Trust are FDIC-insured up to $250,000 per account titled in a Living Trust.

Account Owner	Deposit Type	Account Balance
Jane & John	Orange Savings Account	$500,000
John	Electric Orange	$250,000
Jane	Orange CD	$250,000
John, Trustee for Jane	Orange Savings, Titled in a Living Trust	$250,000
Jane, Trustee for John	Orange CD, Titled in a Living Trust	$250,000
Total Deposits		$1,500,000
Amount Insured		$1,500,000

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