Insured Deposit Accounts

The Federal Deposit Insurance Corporation (FDIC)

FDIC is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government.

Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs).

FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic. To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories.

FDIC insurance covers all deposit accounts at insured banks and savings associations, including checking, NOW, savings accounts, money market deposit accounts and certificates of deposit (CDs) up to the insurance limit.

The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if you purchased these products from an insured bank or savings association.

If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank or savings association, you do not need to worry about your insurance coverage — your deposits are fully insured.

A depositor can have more than $250,000 at one insured bank or savings association and still be fully insured provided the accounts meet certain requirements. In addition, federal law provides for insurance coverage of up to $250,000 for certain retirement accounts.

In April 2006, federal law changed to allow certain retirement accounts to be covered up to $250,000 by the Federal Deposit Insurance Corp. In addition, there's a service called CDARS that gives you access to multi-million-dollar FDIC insurance on your CD investments while working directly with only one bank. 

How does CDARS Work?

CDARS is the Certificate of Deposit Account Registry Service®. And it's the most convenient way to invest large amounts in CDs eligible for FDIC insurance. With CDARS, you sign one agreement with us, earn one interest rate per maturity, and receive one regular statement. It's that easy.

CDARS is the perfect solution for many depositors — from non-profits and public funds to businesses, advisors (including trustees, CPAs, financial planners and lawyers) and individuals, as well as socially-motivated investors.

Financial institutions offering CDARS are members of the CDARS Network. When you place a large deposit with a Network member, the deposit is broken into smaller amounts and placed with other banks that are members of the Network. Then those banks issue CDs in amounts under the standard FDIC insurance maximum, so that your investment is eligible for FDIC protection. Learn full details about CDARS.

For assistance with balances in excess of $250,000 at Blackhawk Bank, contact the Treasury Management Experts at or by phone at 608.299.3430

Limits apply. Funds may be submitted for placement only after a depositor enters into a CDARS Deposit Placement Agreement with us. The agreement contains important information and conditions regarding the placement of funds by us. CDARS and Certificate of Deposit Account Registry Service are registered service marks of Promontory Interfinancial Network, LLC.

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