FDIC Insurance FAQs

What is FDIC Insurance?
FDIC stands for "Federal Deposit Insurance Corporation".  FDIC is an independent agency of the federal government.

What does FDIC insurance protect?
FDIC insurance protects against the loss of insured deposits. It 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.

Who stands behind FDIC insurance?
FDIC insurance is backed by the full faith and credit of the United States Government.

What are the FDIC insurance limits?  
Deposits at Middlesex Federal, an FDIC-insured institution, are insured to at least $250,000 per depositor for each account ownership category. Learn more at https://www.fdic.gov/deposit/covered/categories.html.

What types of deposit accounts does the FDIC insurance cover?
FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA), time deposit such as a certificate of deposit (CD), or an official item issued by a bank, such as a cashier's check or money order.
 
What is not covered by FDIC insurance?
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.

What do I need to do to obtain FDIC insurance?
Depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. 

Are trust accounts covered?  
Yes, FDIC deposit insurance covers trust accounts under two separate ownership categories: Revocable Trust and Irrevocable Trust.   Learn more about how the FDIC covers trust accounts at https://www.fdic.gov/deposit/covered/trust.html.

How do I know how much FDIC insurance coverage I have?
Deposits you maintain at another separately chartered, and insured bank are insured separately from your deposits at Middlesex Federal. 

To calculate the FDIC insurance available for your personal and/or business deposits, use the  FDIC's Electronic Deposit Insurance Estimator (EDIE) at https://www.fdic.gov/edie/.
 
For additional information relating to FDIC insurance coverage, call the FDIC at 1-877-275-3342, or visit its website at http://www.fdic.gov/.