What is FDIC Insurance? What does it cover?

Know if your deposits are 100% FDIC-insured.

In uncertain times such as these it is natural for you to have questions about your money and to seek reassurance that your money is safe.

We at Madison Valley Bank want to make sure that you have access to the tools and resources you need to understand how FDIC insurance works.

  • Madison Valley Bank is a member of the Federal Deposit Insurance Corporation (FDIC).
  • The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to provide insurance protection for depositors of failed banks and to help maintain sound conditions in the nation's banking system.
  • The FDIC is an independent agency of the U.S. Government. Since its inception, the FDIC has responded to thousands of bank failures. All insured deposits of failed banks and thrifts have been protected by the FDIC.

What is insured by the FDIC?

All types of deposits held at Madison Valley Bank are covered by FDIC insurance including:

  • Checking Accounts
  • NOW Accounts
  • Savings Accounts
  • Money Market Savings Accounts
  • Time Accounts (CDs)
  • Deposit products (such as CDs and Savings Accounts) held in IRAs and other retirement accounts
  • Outstanding Cashier's Checks, Money Orders, Loan Disbursement Checks, Interest Checks and Drafts issued by FMVB.

What amount of insurance coverage do I have for my accounts?

The FDIC Standard Maximum Deposit Insurance Amount (SMDIA) for deposits has been permanently increased to $250,000 per depositor per insured financial institution.


Notice of expiration of the temporary full FDIC insurance coverage on noninterest-bearing transaction accounts

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.

Coverage In Addition to Basic Insurance

The FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. It is possible to qualify for more than the current $250,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. The ownership categories are (1) single, (2) joint, (3) revocable trust (informal revocable trusts such as Payable-on-death accounts and formal revocable trusts such as living/family trusts created for estate planning purposes), (4) irrevocable trusts, (5) certain retirement plans, (6) employee benefit plans, (7) business (corporation, partnership, unincorporated associations), and (8) government.

Where can I go if I still have questions?

Please contact us at 1-406-682-4215 or email for more information regarding this program and its benefits to you. You can also visit www.fdic.gov/deposit* for further explanation or estimating coverage on your deposits.