Are My Deposit Accounts Insured By The FDIC?

The Federal Deposit Insurance Corporation (FDIC) is a federal agency that insures deposits up to $250,000 at FDIC-member banks. This insurance helps to protect depositors from losing their money if their bank fails. However, there are some important things to know about FDIC insurance, including what types of accounts are covered, how much insurance is provided, and what happens if your bank fails.

What Types of Accounts Are Covered by FDIC Insurance?

FDIC insurance covers most types of deposit accounts, including:

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit (CDs)
• Cashiers checks
• Money orders

However, there are some types of accounts that are not covered by FDIC insurance, such as:

• Brokerage accounts
• Mutual funds
• Annuities
• Life insurance policies
• Stocks and bonds

How Much Insurance Is Provided by the FDIC?

The FDIC provides deposit insurance up to $250,000 per depositor, per insured bank. This means that if your bank fails, you are insured for up to $250,000 of your deposits. However, there are some important things to keep in mind about this coverage:

• The $250,000 limit applies to each depositor, not each account.
• The $250,000 limit includes all of your deposits at the same bank, regardless of the type of account.
• The FDIC does not provide insurance for deposits that exceed $250,000.

What Happens If My Bank Fails?

If your bank fails, the FDIC will work to protect your deposits. The FDIC may do this by:

• Selling the bank's assets to another bank.
• Assuming the bank's deposits and liabilities.
• Paying depositors up to the $250,000 limit.

If your bank fails, it is important to contact the FDIC as soon as possible. The FDIC will be able to provide you with more information about your deposit insurance coverage and how to file a claim.

Conclusion

FDIC insurance is an important protection for depositors. It helps ensure that depositors will not lose their money if their bank fails. However, it is important to understand the limitations of FDIC insurance and to take steps to protect your deposits, such as spreading your deposits across multiple banks and keeping your balances below the $250,000 limit.

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