FDIC Insurance Guide: Everything You Need to Know

The Federal Deposit Insurance Corporation (FDIC) is a government agency that provides deposit insurance to protect depositors in case of bank failures. In this guide, we'll cover everything you need to know about FDIC insurance, including how it works, coverage limits, and more.

What is FDIC Insurance?

FDIC insurance is a type of deposit insurance that protects depositors in case of bank failures. The FDIC was created in 1933 to provide confidence in the US banking system and to protect depositors' funds.

How Does FDIC Insurance Work?

FDIC insurance works by insuring deposits in participating banks up to a certain amount. The FDIC uses a system of insurance premiums paid by banks to fund its operations and to pay out claims in case of bank failures.

What is the Coverage Limit for FDIC Insurance?

The coverage limit for FDIC insurance is $250,000 per depositor, per insured bank. This means that if you have a deposit of $250,000 or less in a participating bank, it is fully insured by the FDIC.

What is Not Covered by FDIC Insurance?

FDIC insurance does not cover all types of deposits. For example, it does not cover:

• Investments in stocks, bonds, or other securities
• Loans or other extensions of credit
• Deposits in non-participating banks
• Deposits in banks that are not insured by the FDIC

How to Check if a Bank is FDIC-Insured

You can check if a bank is FDIC-insured by visiting the FDIC's website and using their BankFind tool. You can also check the bank's website or visit a branch in person to ask about their FDIC insurance status.

Conclusion

In conclusion, FDIC insurance is an important safety net for depositors in case of bank failures. By understanding how it works, coverage limits, and what is not covered, you can make informed decisions about your bank deposits and ensure your funds are protected.