Electronic Deposit Insurance Estimator (EDIE): How Does It Work?

What Is the Electronic Deposit Insurance Estimator (EDIE)?

The Electronic Deposit Insurance Estimator (EDIE) is a tool provided by the Federal Deposit Insurance Corp. (FDIC) to calculate the insurance coverage of deposit accounts such as checking or savings accounts, certificates of deposit (CDs), or money market accounts at FDIC-insured banks.

However, EDIE isn’t suitable for all types of accounts. It shouldn’t be used for investment accounts with assets such as stocks, bonds, mutual funds, annuities, cryptocurrency, or any other investment account that isn’t classified as a deposit. Furthermore, EDIE isn’t applicable if the deposit account isn’t at an FDIC-insured bank.

Understanding Federal Deposit Insurance

Federal deposit insurance is provided by the FDIC to protect depositors against the loss of their assets held by banks. FDIC insurance covers banks and other financial institutions; it isn’t a type of insurance that individual account holders are able to purchase on their own. Because of this, it’s especially important that you confirm that your bank is FDIC-insured before opening an account. To determine this, either look for official FDIC signs at teller windows or call the FDIC’s free hotline (1-877-ASK-FDIC = 1-877-275-3342).

The basic FDIC insurance coverage limit is $250,000 per FDIC-insured account owner, meaning that up to $250,000 of the deposits in an account are protected by this insurance. This applies to single bank accounts, individual retirement accounts (IRAs), and certain additional retirement accounts.

Note that FDIC insurance works slightly differently for joint accounts. In this case, the coverage limit is $250,000 per co-owner, meaning that the total coverage may be higher depending on the number of account holders. It is also possible for an individual to have more than $250,000 in deposits at a single bank covered by FDIC insurance if that person has deposits in multiple account categories (for instance, in both a single savings account and an IRA).

Using EDIE

To use EDIE, begin by confirming that your bank and accounts in question are covered by the FDIC. Next, visit the FDIC’s free online EDIE tool. To use the calculator, you’ll need to perform the following steps:

• Step 1: Enter your bank name (or use the EDIE bank search tool to find your bank by state, city, and other information) and indicate whether you’re searching for information pertaining to a personal, business, or government account.
• Step 2a: If you’re searching for information regarding a personal account, include the ownership type (i.e., single, joint, etc.), the owner’s name and status, an account nickname (to help you identify the account on the final report), and the account balance, then click “Add to Report.”
• Step 2b: If you’re searching for information regarding a business account, include the type of business, business name, Employer Identification Number (EIN)/Taxpayer Identification Number (TIN), and an account nickname and balance, then click “Add to Report.”
• Step 2c: If you’re searching for information for a government account, include information about the account holder and official custodian, the name of the public unit, the EIN/TIN, an account nickname and balance, and confirm that the account meets the EDIE requirements, then click “Add to Report.”
• Step 3: You now have the option to add a new account at the same bank or to calculate your insurance coverage. EDIE will indicate on the same page whether your deposits are fully insured. You then have the choice to either add a new account, print the report, or create another report.

Note that EDIE is intended to make determinations about insurance coverage for all of an account holder’s accounts at one financial institution at once. If you hold accounts at multiple banks, complete the process of entering information for all accounts at one bank and create a report before starting over again with the next bank.

The Bottom Line

To determine to what extent your deposits are protected by FDIC insurance, use the FDIC’s Electronic Deposit Insurance Estimator (EDIE). Any individual, family, or business looking to open a deposit account at a U.S. bank should confirm beforehand that the bank is FDIC-insured.

FDIC insurance covers losses of up to $250,000 in deposits for certain types of accounts, per account and per account holder. Individuals may achieve additional coverage by holding multiple accounts (for example, both an individual and a joint savings account).