To calculate the FDIC coverage:
\[ \text{Coverage} = \min(\text{Account Balance}, 250,000) \]
\[ \text{Excess Amount} = \max(0, \text{Account Balance} - 250,000) \]
FDIC coverage is provided by the Federal Deposit Insurance Corporation to insure deposit accounts at FDIC-insured banks. It covers individual accounts up to $250,000 per depositor, per insured bank, for each ownership category[^1^][^2^].
Let's assume the following values:
Using the formula:
\[ \text{Coverage} = \min(300,000, 250,000) = 250,000 \text{ dollars} \]
\[ \text{Excess Amount} = \max(0, 300,000 - 250,000) = 50,000 \text{ dollars} \]
The FDIC coverage is $250,000, and the excess amount is $50,000.
Let's assume the following values:
Using the formula:
\[ \text{Coverage} = \min(200,000, 250,000) = 200,000 \text{ dollars} \]
\[ \text{Excess Amount} = \max(0, 200,000 - 250,000) = 0 \text{ dollars} \]
The FDIC coverage is $200,000, and there is no excess amount.