If your bank fails and you don't have insurance, you may get some of your money back, how much depending on the size of your account. The Federal Deposit Insurance Corporation (FDIC) guarantees fund up to $250,000 until 2013, at which point this figure may drop to $100,000. If your accounts exceed this limit, there are a number of ways to insure the overage, and it is a very good idea to do so.

The Basics

FDIC rules stipulate that each account holder will be insured up to $250,000 at any single bank. Therefore, you may insure more than this if the balance is split between unrelated banks. However, it may be more difficult than it seems to find unrelated banks. If you're unsure whether two banks are commercially related, it is best to ask, or use one of the methods described below.

Seperate Accounts

FDIC limits are based on the amount in an individual account. If you have more than one type of account, for instance, a single and a joint account, you may be able to insure up to $500,000 by splitting the balance between them. For details, see the FDIC Titling Guide resource below.

Brokerage Accounts

If you don't have an account with a brokerage service, it may be a good idea to get one. Many of the larger firms make buying other types of insured deposits as easy as clicking a mouse. Buying a number of CDs or holding money in a number of money market accounts may also be a better idea financially than straight deposit, as these often yield higher returns. Be warned, however, it is up to you to ensure that your holdings are split between non-related banks.

CDARS

The Certificate of Deposit Account Registry Service (CDARS) is a service many banks offer that is meant to help customers insure their deposits over FDIC limits. In brief, the program splits your money among CDs at unrelated banks in the CDARS network. If your bank offers it, the CDARS program could allow you to insure up to $50 million. If you choose to go this route, however, it is best to work closely with your bank to ensure your funds are not sent to related banks, and thus uninsured.

DIF

The Depositors Insurance Fund in Maryland automatically insures depositors accounts over the FDIC limit. What makes this program attractive is that you don't need to take any extra steps to be certain your money is insured. If you're not looking for high returns or are only slightly past the FDIC limit, this may be a good choice. Even better, many of these banks accept out-of-state accounts. For a list of member banks, see the DIF Member Bank resource below.

Source:

6 Ways to Insure Excess Deposits

FDIC Insurance Basics

More Information:

FDIC Titling Guide

FDIC Official Website

DIF Member Banks