A:

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects you against loss of deposit if your bank is FDIC insured. Banks are not mandated to be FDIC insured, but being insured has become a point of competition among banking institutions. In other words, a bank that is not FDIC insured cannot compete effectively in an industry where consumers have come to expect their money to be protected. To see if your bank is FDIC insured, you can go to the FDIC Bank Find page.

The FDIC does not insure all accounts held at an insured bank. The types of bank accounts insured by the FDIC include negotiable order of withdrawal (NOW), money market, checking, IRA, savings, and certificate of deposit (CD) accounts. These accounts are insured for up to $250,000 per account. Financial instruments such as stocks, bonds and money market funds, U.S. Treasury securities (T-bills), safe deposit boxes, annuities, and insurance products are not insured by the FDIC.

To learn more, read our related article Are Your Bank Deposits Insured?

RELATED FAQS

  1. What is the difference between a modified duration and a Macaulay duration?

    Understand how investors and savers can use money market mutual funds and conventional savings accounts, and learn the differences ...
  2. Is the banking sector subject to any seasonal trends?

    Explore the unexpected seasonal trends that can be discerned regarding the banking industry and the financial services sector ...
  3. Besides stocks, what other asset classes can I invest in through ETFs?

    Discover the extremely far-reaching range of investment asset classes that are available to investors through exchange-traded ...
  4. How can I look up average banker's acceptance yields?

    Discover what a banker's acceptance note is, how it is commonly used, and where investors can find information on available ...
RELATED TERMS
  1. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  2. Advance Dividend

    An estimate of the present value of an asset being liquidated ...
  3. Asset Specialist

    A professional who is responsible for the management and disposition ...
  4. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
  5. Asset Liquidation Agreement (ALA)

    A contract between the Federal Deposit Insurance Corporation ...
  6. Affordable Market Value (AMV)

    The sale price of a multi-family residential housing unit sold ...

You May Also Like

Related Articles
  1. Bonds & Fixed Income

    What is the difference between a modified ...

  2. Economics

    Will “Internet-Only” Banks Change Chinese ...

  3. Professionals

    Impact of SEC's New Money Market Fund ...

  4. Entrepreneurship

    Technology, The Biggest Threat For Big ...

  5. Entrepreneurship

    JPMorgan vs. Goldman Sachs: A Tale of ...

Trading Center