The FDIC maintains stability and public confidence in the U.S. financial system by protecting depositor of insured banks against the loss of their deposits in the event that the financial institution fails. The FDIC's supervision program promotes the safety and soundness of FDIC-supervised financial institutions, protects consumers' rights, and promotes community investment initiatives.
In the depths of the Great Depression, the FDIC was created by the federal Banking Act of 1933. Congress wanted a mechanism in place that would guarantee the safety of deposits in member banks. And according to the FDIC, "no depositor has lost one penny of FDIC-insured deposits." FDIC insurance covers depositors’ accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank’s closing, up to the insurance limit.
Before opening a deposit account, look for the logo that says, “Member FDIC”
Wells Fargo, along with thousands of other financial institutions, is FDIC-insured. FDIC insurance limits cap at $250,000. The FDIC insures certificates of deposit and money market accounts, along with traditional checking and savings accounts. Some items that are not FDIC-insured include mutual funds, safe deposit box contents, annuities, and others. It is possible to qualify for more than the current $250,000 in coverage depending on type of account and ownership category; you should ask your banker about your specific situation or visit the FDIC for more information.
Empower yourself with financial knowledge
We’re committed to helping with your financial success. Here you’ll find a wide range of helpful information, interactive tools, practical strategies, and more — all designed to help you increase your financial literacy and reach your financial goals.
Financial Education and Tools
FDIC Resources, Federal Deposit Insurance Corporation, site accessed 6/7/2022
Investment and Insurance Products are:
- Not Insured by the FDIC or Any Federal Government Agency
- Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
- Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.
CAR-0823-00265
LRC-0723
FAQs
Make sure your money is at an FDIC-insured bank
Having your money at an FDIC-insured bank will protect your money in case of a bank failure – as long your balances are within FDIC limits and following the FDIC's rules.
How do you know if you are saving enough money? ›
If you can barely pay your bills each month, aren't saving any money in a retirement plan, or are spending more than 30% of your income on housing, you're probably not saving enough money.
How do you know how much money is enough? ›
You can find out how much money you really need by calculating the following:
- 1) Your total debt. (Credit cards, student loans, car loan, mortgages, etc.) ...
- 2) Your monthly living expenses. ...
- 3) Cost of unbudgeted expenses. ...
- 4) Cost of stuff and experiences you want. ...
- 5) Income and business taxes.
For the emergency stash, most financial experts set an ambitious goal at the equivalent of six months of income. A regular savings account is "liquid." That is, your money is safe and you can access it at any time without a penalty and with no risk of a loss of your principal.
How much cash can you keep at home legally in US? ›
The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.
Can I retire at 60 with 300k? ›
£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.
How much you should have saved by age? ›
Fast answer: Rule of thumb: Have 1x your annual income saved by age 30, 3x by 40, and so on. See chart below. The sooner you start saving for retirement, the longer you have to take advantage of the power of compound interest.
How much money needed to retire at age 65? ›
Average retirement savings by age
| Age | Average retirement savings (2022) | Median retirement savings (2022) |
|---|
| 45 to 55 | $313,220 | $115,000 |
| 55 to 64 | $537,560 | $185,000 |
| 65 to 74 | $609,230 | $200,000 |
| 75 or older | $462,410 | $130,000 |
2 more rowsDec 21, 2023
The most common answer was between $1 million—$10 million (USD). That is a surprisingly low number when you consider that they were not asked “how much do you need to retire?” but how much to fund their “ideal life”.
How much money do you really need to live? ›
The study found that a person needs an average of $96,500 for sustainable comfort in a major U.S. city. It's even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
How much cash should you keep at home for emergency? ›
“As a general rule of thumb, having access to $1,000 in cash at home would ensure you can at least pay for immediate expenses in the case of a national emergency,” she said.
How much cash should I have on hand? ›
While you're working, we recommend you set aside at least $1,000 for emergencies to start and then build up to an amount that can cover three to six months of expenses. When you've retired, consider a cash reserve that might help cover one to two years of spending needs.
Should I withdraw my money from the bank? ›
Should I pull my money out of my bank? It doesn't make sense to take all your money out of a bank, said Jay Hatfield, CEO at Infrastructure Capital Advisors and portfolio manager of the InfraCap Equity Income ETF. But make sure your bank is insured by the FDIC, which most large banks are.
How can I protect my money from a bank collapse? ›
Ensure Your Bank Is Insured
If a bank or credit union collapses, each depositor is covered for up to $250,000. If your bank or credit union isn't FDIC- or NCUA-insured, however, you won't have that guarantee, so make sure your funds are at an institution covered by deposit insurance.
Can banks seize your money if economy fails? ›
Banking regulation has changed over the last 100 years to provide more protection to consumers. You can keep money in a bank account during a recession and it will be safe through FDIC and NCUA deposit insurance. Up to $250,000 is secure in individual bank accounts and $500,000 is safe in joint bank accounts.
Is my money 100% safe in a bank? ›
FDIC Insurance
Most deposits in banks are insured dollar-for-dollar by the Federal Deposit Insurance Corp. This insurance covers your principal and any interest you're owed through the date of your bank's default up to $250,000 in combined total balances. You don't have to apply for FDIC insurance.
Where is the safest place to put your money during a recession? ›
Cash and Cash Equivalents
Cash equivalents include short-term, highly liquid assets with minimal risk, such as Treasury bills, money market funds and certificates of deposit. Money market funds and high-yield savings are also places to salt away cash in a downturn.
The FDIC maintains stability and public confidence in the U.S. financial system by protecting depositor of insured banks against the loss of their deposits in the event that the financial institution fails. The FDIC's supervision program promotes the safety and soundness of FDIC-supervised financial institutions, protects consumers' rights, and promotes community investment initiatives.