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Is My Money Safe in the Bank?


Most Asked Questions about FDIC Coverage

Is my money safe in the bank?

Ohio Valley Bank, established in 1872, has withstood hard times in history such as the Great Depression and both World Wars. OVB is a member FDIC bank. The FDIC is a government agency that protects depositors against loss of their insured deposits if a bank fails and it is backed by the full faith and credit of the United States government.

Is my money market account safe?

Ohio Valley Bank's money market account is a bank deposit account covered by the FDIC. The depositor must not get this confused with a money market mutual fund which is tied to the stock market and not covered by the FDIC.

How much of my money is protected?

Dollar amounts are per financial instituion:

Single Accounts (owned by one person): $250,000 per owner

Joint Accounts (two or more persons): $250,000 per co-owner

IRAs and other certain retirement accounts: $250,000 per owner

Revocable trust accounts: Each owner is insured up to $250,000 for the interests of each beneficiary, subject to specific limitations and requirements

What are the categories of legal ownership and how does that work?

The FDIC recognizes 8 ownership categories. Accounts owned by the same person in each category may be insured separately. Some categories have additional requirements. Your banker will be able to fully explain those requirements.

  1. Single Accounts: These include accounts held in one person's name alone, accounts established for one person by a custodian or guardian, accounts held in the name of a business that is a sole proprietorship such as a DBA account, accounts established for a decedent's estate, and any account that does not fit under another category
  2. Certain Retirement Accounts: These include Traditional and Roth IRAs, SEPs, and some Keogh plan accounts
  3. Joint Accounts: These include accounts owned by two or more people (not legal entities such as corporations, trusts, estates, or partnerships), where all owners have equal rights to withdraw funds from the account
  4. Revocable Trust Accounts: Includes Payable on Death accounts
  5. Irrevocable Trust Accounts
  6. Employee Benefit Plan Accounts
  7. Corporation/Partnership/Unincorporated Association Accounts
  8. Government Accounts

Can I increase my coverage by adding more beneficiaries on my retirement account?

Naming beneficiaries on a retirement account does not increase deposit insurance coverage.

Does the FDIC insure safe deposit boxes?

No. In the event of bank failure, the FDIC in most cases arranges for an acquiring bank to take over the failed bank's offices, including locations with safe deposit boxes. If no bank buys the failed bank, box-holders would be sent instructions for removing the contents of their boxes.

If all of my accounts are at OVB's Main Office, can I increase my coverage by moving one of them to another OVB office?

If an FDIC member bank has branch offices, such as OVB does, the main office and all branch offices are considered one insured bank. A depositor cannot increase insurance coverage by placing deposits at different branches of the same insured bank. Deposits with each FDIC-insured bank are insured separately from any deposits at another insured bank.