FDIC 

The Federal Deposit Insurance Corporation

Federal Deposit Insurance Corporation or FDIC for short - is an independent agency of the United States government.

The main function of the FDIC is to protect consumers who have accounts at FDIC insured banks or savings association, from loss of their insured deposits in the event that the insured bank or savings association fails. This insurance is backed by the full faith and credit of the U.S. government and is offered in most U.S. banks and savings associations.

Depositors who have accounts at one FDIC insured bank or saving association that total $250,000 or less are fully insured against loss for the entire amount of their account. In addition, a depositor can still be fully insured even if they have more than 250,000 at one insured bank or savings institution, as long as their accounts meet certain requirements.

To confirm whether a bank or savings association is insured by the FDIC, call toll-free at:

877-275-3342, or us “Bank Find” at www.fdic.gov/deposit

Banks and savings institutions that offer FDIC insured accounts will also display the official FDIC sign where they receive deposits.

While FDIC insurance covers – dollar for dollar up to the insured limit- all types of deposits made at an insured bank or savings institution, such as checking accounts, NOW accounts, savings accounts, money market accounts, and CD’s (certificates of deposits). It does NOT cover any sort of securities or equity accounts even if they were purchased through an insured bank.

The amount covered includes both principal AND any accrued interest through the date that the insured bank closed. When purchasing CD’s it’s important to keep this in mind  because if you purchase a $250,000 CD, and the insured bank has an issue, you will only receive the principal amount of $250,000 and no additional for accrued interest that may be due.

In addition, the FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.