Frequently Asked Questions

FDIC (Federal Deposit Insurance Corporation) insurance protects deposits in member banks up to $250,000 per depositor, per bank, per ownership category. This insurance is backed by the full faith and credit of the United States government and has protected depositors since 1933. Coverage includes checking accounts, savings accounts, money market accounts, and certificates of deposit.

FDIC-insured banks must display the official FDIC logo and relevant disclosures. You can verify a bank's FDIC insurance status using the FDIC's online database at fdic.gov. All legitimate banks provide this information prominently on their websites and in their physical locations.

Banks are for-profit corporations that serve customers, while credit unions are non-profit cooperatives owned by their members. Credit unions often offer competitive rates and lower fees, but membership may be restricted based on employment, location, or other criteria. Banks typically offer broader services and more extensive branch networks.

FDIC-insured online banks provide the same deposit protection as traditional banks. They use advanced security measures including encryption, multi-factor authentication, and fraud monitoring. Many online banks offer enhanced security features and may actually have fewer vulnerabilities than banks with physical branches due to reduced physical access points.

Typically, you'll need a valid government-issued photo ID (driver's license, passport, or state ID), Social Security number, and proof of address (utility bill, lease agreement, or bank statement). Some banks may require additional documentation depending on the account type and your specific circumstances.

Common ways to avoid monthly fees include maintaining minimum balance requirements, setting up direct deposits, using your debit card a certain number of times per month, or choosing accounts specifically designed to have no monthly fees. Requirements vary by bank and account type.

APR (Annual Percentage Rate) represents the cost of borrowing money and includes interest plus fees. APY (Annual Percentage Yield) represents the amount earned on deposits, accounting for compound interest. APY is used for savings accounts and CDs, while APR is used for loans and credit cards.

Yes, you can maintain accounts at multiple banks. This strategy can help you take advantage of different rates, services, and features offered by various institutions. It also provides backup access to funds and may help you optimize your FDIC insurance coverage.

Mobile banking apps use multiple layers of security including encryption, secure login credentials, biometric authentication, and fraud monitoring. Banks invest heavily in cybersecurity and regularly update their systems. Users should practice good security habits like using strong passwords and keeping apps updated.

Immediately contact your bank to report the lost device and temporarily freeze or monitor your accounts. Change your online banking passwords and enable any additional security measures. Most banking apps require authentication to access, but taking quick action helps protect your accounts.

Mobile check deposit allows you to photograph the front and back of a check using your bank's mobile app. The bank processes the image and typically makes funds available within one to two business days. You should write "For Mobile Deposit Only" on the back and securely store or destroy the physical check after confirmation.

Yes, banks set various limits for security purposes. These may include daily withdrawal limits, transfer limits, mobile deposit limits, and bill payment limits. Limits vary by bank, account type, and customer history. You can typically view your specific limits within your online banking platform or by contacting customer service.

Online banks typically have lower operational costs because they don't maintain expensive branch networks or employ large numbers of tellers. These cost savings allow them to offer higher interest rates on deposits and lower fees. However, they may lack some services that traditional banks provide through physical locations.

Interest rates can change frequently based on market conditions, Federal Reserve policy, and competitive factors. Some banks adjust rates monthly or even more frequently, while others change rates less often. Variable rate products like savings accounts may change more frequently than fixed-rate products like CDs.

Overdraft fees are charged when you spend more money than you have in your account. To avoid them, monitor your account balance regularly, set up account alerts, maintain a buffer in your account, link a savings account for overdraft protection, or opt out of overdraft coverage for debit card and ATM transactions.

Not all banks charge ATM fees. Many online banks reimburse ATM fees charged by other banks, and some traditional banks offer fee-free ATM networks. Credit unions often participate in shared ATM networks that don't charge fees to members. Check your bank's ATM policy and consider this factor when choosing an account.

Contact your bank immediately to report unauthorized transactions. The bank will typically freeze your account or card, investigate the transactions, and issue provisional credit while the investigation proceeds. Federal law limits your liability for unauthorized electronic transactions if you report them promptly.

Protect yourself by using strong, unique passwords, enabling two-factor authentication, monitoring your accounts regularly, avoiding public Wi-Fi for banking, never sharing login credentials, and being cautious of phishing emails or calls requesting account information. Banks will never ask for sensitive information via email or unsolicited calls.

If an FDIC-insured bank fails, the FDIC typically arranges for another bank to take over the deposits and accounts, or pays depositors directly. Insured deposits are protected up to $250,000 per depositor, per bank. In most cases, you'll have access to your insured deposits by the next business day after the bank closes.

Keeping all deposits in one bank may limit your FDIC insurance coverage if you have more than $250,000. Diversifying across multiple banks can increase your insurance coverage, provide backup access to funds, and allow you to take advantage of different rates and services offered by various institutions.