Are Free Checking Accounts FDIC Insured?

When choosing a checking account, “free” sounds great—but what about “safe?” After all, your money is more than numbers on a screen. It’s your hard work, your plans, and your peace of mind! Enter FDIC insurance coverage, protecting every dollar earned. However, if your checking account doesn’t charge a monthly fee, you might be wondering if you still receive the same level of protection. Keep reading to find out if free checking accounts are FDIC insured.

Spoiler alert: The answer will give you a lot more financial confidence!

What is FDIC Deposit Insurance?

The Federal Deposit Insurance Corporation (FDIC) is a government agency that serves as a safety net for bank clients. It was created in 1933 to protect depositors and restore trust in the American banking system. Why? During the Great Depression, thousands of banks failed and caused people to lose their savings. Ultimately, this tragedy frightened Americans and shattered their trust in banks.

The events of 1933 will never happen again. Today, people feel safe keeping their money in banks because FDIC coverage protects their deposits.

Here’s how FDIC insurance works: When you deposit money at a participating bank, the federal government backs your account up to the FDIC limit of $250,000 per depositor, per insured bank, per account ownership category. This is just a complicated way of saying that each person’s coverage is calculated separately by account type (like single vs. joint account) and by bank. So, what does this mean? If your bank ever fails (which is very unlikely), the FDIC steps in and makes sure you get your money back.

This protection is automatic. You don’t need to apply for FDIC bank insurance or pay extra. When your bank displays the Member FDIC logo, you know that it is officially insured by the FDIC. For example, the logo should appear on your bank’s website, account materials, and branch signage. This means your bank account deposits are guaranteed by the U.S. government.

What are Free Checking Accounts?

Now, let’s shift our focus to free checking accounts. Believe it or not, they are EXACTLY what they sound like—checking accounts with no monthly fees. Free checking accounts provide the same essential features as traditional accounts, including debit cards, online banking, and check-writing.

Most people choose free checking accounts because they offer easy access to your money without worrying about extra costs reducing your available funds. For example, traditional checking accounts usually require higher minimum balances to waive monthly fees. Free checking accounts eliminate this burden, making them ideal for people who rarely keep high deposits in their accounts.

Remember, the “free” in a “free checking account” typically means no monthly maintenance charges. It is still possible to pay fees for situations like overdrafts or out-of-network ATM use.

Are Free Checking Accounts FDIC Insured?

Yes! Free checking accounts at FDIC-insured banks have the exact same insurance protection as any other type of checking account. This means your deposits are automatically insured up to the FDIC account limit ($250,000).

It’s worth noting that “bank accounts with no fees” DOES NOT translate to “bank accounts with no protection.” The insurance coverage itself comes from the federal government, not from the bank’s fee structure. So, whether you are paying $15/month for a premier checking account or $0/month for a free one, your money receives identical security. The only thing that matters is banking at an FDIC-insured institution.

Free Checking Accounts with FDIC Insurance at Academy Bank

Great banking shouldn’t be reserved for those who can afford high fees. At Academy Bank, we believe EVERYONE deserves access to safe, no-cost checking accounts that prioritize financial security. Therefore, we created the Simply Free Checking Account. It offers FDIC deposit coverage and other features, including:

• No minimum balance requirements
• No monthly service charge
• Free monthly eStatements (paperless required)
• Free overdraft protection when linked to a savings account
• Convenient digital banking platform and app¹
• Early Pay with direct deposit²
• Referral rewards program³

Ready to open a free checking account that’s simple, secure, and FDIC insured? Look no further than Academy Bank’s Simply Free Checking Account!

Free Checking Account Online

Still weighing your options? Compare our other FDIC checking accounts.

Member FDIC