What protection does federal deposit insurance offer?

Deposit accounts at federally insured depository institutions are protected by the FDIC. Ask if your bank is federally insured by FDIC. In general, this means the government will guarantee accounts up to $250,000. There are certain exceptions to this rule. Annuities and mutual funds from banking institutions are usually NOT protected by the FDIC. Also, trust accounts, and those with co-owners may change the amount of coverage you have.