Most modeled covered deposits
Coverage firstCoverage and yield optimized protects about $416,479.85 under this one-depositor, one-category scenario.
SwitchWize decision guide
FDIC Coverage and Yield Optimizer
Separate accounts at one bank do not automatically create separate coverage. Model one depositor and one ownership category, aggregate same-bank deposits, and leave room for interest before comparing yield.
What you can expect
- No login required
- No credit pull
- Assumptions shown
- Sources included
Quick answer
Treat insurance as an institution-and-ownership calculation, not an account-count calculation. Verify every bank charter, aggregate all same-category deposits, leave headroom for accrued interest, and confirm the final structure in FDIC EDIE.
If current
Shows the entered allocation after modeled interest, including any amount beyond verified coverage.
If coverage first
Fills the highest-yield verified banks only to a growth-adjusted principal capacity before using another bank.
If highest apy
Maximizes entered APY by concentrating principal, which can create a large modeled uninsured amount.
Key number to watch
About $62,600 of modeled ending deposits exceed verified coverage in this simplified scenario.
Test your situation
See your result in dollars
Change any number below to match your situation. No login is required, and your entries stay in this browser.
months
Interest growth through this horizon is included in the modeled ending deposit.
$
Add every eligible deposit in the same ownership category at Bank A.
%
Entered effective annual yield.
Choose yes only after verifying the insured institution—not merely the marketing brand.
$
Use a genuinely distinct bank charter.
%
Entered effective annual yield.
Confirmation applies to the institution receiving the deposit.
$
Optional third distinct bank.
$
Optional fourth distinct bank.
The coverage-first allocation keeps the modeled ending deposits within the entered per-bank limit while earning about $16,479.85 over 12 months. Suggested principal allocation: Bank A $239,923.22 at 4.20% → Bank B $160,076.78 at 4.00%.
Current allocation
$354,000
modeled covered deposits after 12 months
$0 vs. baseline
Coverage and yield optimized
$416,480
modeled covered deposits after 12 months
$62,480 vs. baseline
Highest-APY concentration
$250,000
modeled covered deposits after 12 months
-$104,000 vs. baseline
Try a scenario
Key number to watch
About $62,600 of modeled ending deposits exceed verified coverage in this simplified scenario.
How certain: moderate
Check these assumptions
- • This is a simplified planning model, not an FDIC insurance determination. Confirm institution identity in BankFind and use FDIC EDIE for actual accounts.
- • All deposit accounts in the same ownership category at the same insured bank are added together; different account names, branches, apps, or deposit types do not create separate limits.
- • Trust, joint, retirement, business, government, brokered, sweep, and pass-through arrangements require category-specific records and rules that this model does not calculate.
- • FDIC insurance covers eligible deposits at insured banks, not stocks, bonds, mutual funds, annuities, crypto assets, or other nondeposit investments.
What matters most
Highest modeled interest
Highest APYHighest-APY concentration earns about $16,800 over the entered period, without assigning a value to uninsured exposure.
Fewest bank relationships
Highest APYThe concentration path uses one entered institution, regardless of the resulting insurance gap.
No account movement
CurrentThe current path preserves the entered balances and rates.
Side-by-side comparison
Account movement
- Current
- None
- Coverage first
- Redistributes across entered banks
- Highest APY
- Concentrates at one bank
Interest headroom
- Current
- Audited after growth
- Coverage first
- Built into principal capacity
- Highest APY
- Not protected
Coverage priority
- Current
- Entered structure
- Coverage first
- Highest
- Highest APY
- Secondary to APY
Yield priority
- Current
- Entered structure
- Coverage first
- Best verified APY within capacity
- Highest APY
- Highest entered APY
Institution verification
- Current
- Required
- Coverage first
- Required for protected capacity
- Highest APY
- Determines whether any amount is modeled insured
What could go wrong
Current bank allocation
- What needs to work
- Every balance is correctly aggregated by charter and ownership category.
- Common problem
- Multiple accounts or brands at the same bank are counted as separate limits.
- What it could cost
- A deposit believed to be insured is actually above the applicable limit.
- How to prepare
- High before a bank failure; allocations can be changed.
Coverage and yield optimized
- What needs to work
- Every bank is genuinely distinct, verified, and titled in the intended category.
- Common problem
- A sweep, partner bank, merger, or ownership record differs from the simplified entry.
- What it could cost
- False confidence from a planning estimate that does not match bank records.
- How to prepare
- High, subject to account and transfer terms.
Highest-APY concentration
- What needs to work
- The depositor deliberately accepts the amount beyond insurance coverage.
- Common problem
- A small APY premium obscures a much larger uninsured balance.
- What it could cost
- Uninsured principal and interest exposure at the concentrated institution.
- How to prepare
- High before an institution closes; operational access can still matter.
A simple backup plan
Verify, aggregate, leave headroom, then optimize
Coverage accuracy comes before rate ranking.
- 1Confirm the insured institution and charter in FDIC BankFind.
- 2Aggregate all deposits for one depositor and one ownership category at that bank.
- 3Use FDIC EDIE for the real account titles and beneficiaries.
- 4Leave capacity for expected interest and pending deposits.
- 5Among verified banks with capacity, allocate to the stronger APYs and review after mergers, rate changes, or balance growth.
Educational illustration only. The right amount depends on your needs and timing.
What to do next
Question 1
Are all entered institutions verified as distinct insured banks?
Yes: Aggregate deposits by ownership category.
No: Use BankFind before relying on the model.
Question 2
Does the actual structure involve joint, trust, retirement, business, brokered, sweep, or pass-through coverage?
Yes: Use FDIC EDIE or contact FDIC for the category-specific calculation.
No: Continue with the one-depositor, one-category model.
Question 3
Will principal plus modeled interest remain below each applicable limit?
Yes: Compare APYs within available capacity.
No: Redistribute or accept the identified uninsured amount.
Plain-text decision tree. Are all entered institutions verified as distinct insured banks? If yes, Aggregate deposits by ownership category. If no, Use BankFind before relying on the model. Does the actual structure involve joint, trust, retirement, business, brokered, sweep, or pass-through coverage? If yes, Use FDIC EDIE or contact FDIC for the category-specific calculation. If no, Continue with the one-depositor, one-category model. Will principal plus modeled interest remain below each applicable limit? If yes, Compare APYs within available capacity. If no, Redistribute or accept the identified uninsured amount.
When to check again
- A balance approaches its limit.
- Interest credits or a pending deposit use the remaining headroom.
- A bank merger changes institution identity.
- An ownership category, owner, or beneficiary changes.
- A sweep or brokered-deposit program changes partner banks.
- An APY change alters the optimal order.
Methodology
The engine compounds each entered balance at its APY, then caps modeled coverage at the entered limit for verified banks. Coverage-first calculates the principal capacity whose modeled ending balance remains under the limit, filling higher-APY verified banks first.
The $250,000 default reflects current FDIC general guidance for one depositor, per insured bank, per ownership category. All bank balances and APYs are user-entered.
- • This model is not EDIE and cannot determine legal insurance coverage.
- • It handles one depositor and one ownership category at a time.
- • Joint, trust, retirement, business, government, brokered, sweep, custodial, and pass-through structures are outside scope.
- • Taxes, fees, rate changes, deposit timing, bank mergers, and transfer constraints are excluded.
FDIC limits, ownership rules, EDIE guidance, and source URLs are reviewed quarterly and after regulatory changes. Editorial conclusions do not depend on affiliate availability.
Sources
FDIC — Understanding Deposit InsuranceChecked July 22, 2026 · high confidence
Standard limit, ownership categories, and aggregation at the same insured bank.
FDIC — Deposit Insurance at a GlanceChecked July 22, 2026 · high confidence
Covered deposit types, accrued interest, BankFind verification, and same-category aggregation.
FDIC — Electronic Deposit Insurance EstimatorChecked July 22, 2026 · high confidence
Official advisory estimator for account-specific ownership and coverage inputs.
FDIC — Deposit Insurance FAQsChecked July 22, 2026 · high confidence
Standard coverage amount and distinction between deposits and nondeposit investments.
Frequently asked questions
Do two savings accounts at the same bank receive two $250,000 limits?
Not when they belong to the same depositor and ownership category. FDIC adds deposits in the same category at the same insured bank before applying the limit.
Do different branches count as different banks?
No. Coverage attaches to the insured bank, not the branch. Verify the institution and certificate in BankFind.
Why does coverage-first leave less than $250,000 of principal at a bank?
The model reserves room for entered APY growth so the ending principal plus interest stays within the entered limit over the planning horizon.
Can joint or trust accounts increase coverage?
Different ownership categories can qualify for separate coverage when all requirements are met, but the rules depend on actual titles, owners, beneficiaries, and records. Use FDIC EDIE.
Are money market funds FDIC-insured?
No. A money market mutual fund is an investment. A money market deposit account at an FDIC-insured bank is a deposit product; verify what you own.
Does a bank app or fintech brand prove FDIC coverage?
No. Identify the insured bank holding the deposit, verify it in BankFind, and review any pass-through or sweep arrangement.
What happens to deposits above the limit?
This guide labels them modeled uninsured. Actual recoveries and claims depend on the bank failure and applicable law; the model does not estimate recovery.