FDIC Insurance - Is Your Money Covered?
What is the FDIC?
The FDIC- short for the Federal Deposit Insurance Corporation - is an independent agency of the United States government. The FDIC protects you against the loss of your deposit if an FDIC insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
Why is FDIC Insurance Important to You?
All FDIC- insured banks must meet high standards for financial strength and stability. The FDIC with other federal and state regulatory agencies, regularly reviews the operations of all insured bank to ensure these standards are met. Despite these safeguards, some insured banks fail. IF your insured bank fails, FDIC insurance will cover your deposit accounts, dollar for dollar including principal and any accrued interest up to the insurance limit.
Historically, insured funds are available to depositors within just a few days after the closing of an insured bank. Since the start of the FDIC in 1933, no depositor has ever lost a penny of insured deposits.
Basic Insurance Limit is $100,000.00
The FDIC insures deposit accounts such as checking, NOW, and savings accounts, money markets, deposit accounts, and certificates of deposit (CD's). The basic insurance limit is $100,000 per depositor per insured bank.
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.
The FDIC also does NOT insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government- the strongest guarantee you can get.
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