Understanding Deposit Insurance
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States Governement. Since the FDIC was established in 1933, no depositor has lost a penny of FDIC-insured funds. FDIC insurance covers all deposit accounts, including:
- Checking Accounts
- Savings Accounts
- Money Market Deposit Accounts
- Certificates of Deposit
FDIC insurance does not cover other financial products and services that bans may offer, such as stocks, bonds, mutal funds, life insurance policies, annuities or securities.
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
Reviewed: January 7th, 2021