The Federal Deposit Insurance Corporation (FDIC)

The FDIC is an independent agency of the federal government whose mission is to protect deposits of customers in banks and thrifts of up to $250,000 per depositor per insured bank. The agency was created in the early 1933 in response to widespread failure of banks during the Great Depression. Banks and thrifts pay premia to fund the FDIC.

What is insured?
Checking accounts, savings accounts and certificates of deposit.

What is not insured?
All manner of securities including, individual stocks, bonds, mutual funds, exchange-traded funds, closed end funds and annuities

Look Out!
Is a money market mutual fund covered under FDIC insurance?

No, because the money market funds are housed in an investment company product.



Are treasury securities covered under the FDIC?
No, but interest payments and redemptions from them, deposited into bank savings and checking accounts, are.

Look for exams questions that present scenarios testing the candidate's ability to apply FDIC coverage amounts in different fact patterns.



Introduction

Related Articles
  1. Insurance

    Federal Deposit Insurance Corporation (FDIC)

    The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks and thrift institutions.
  2. Investing

    Mutual Funds Are Not FDIC Insured: Here Is Why

    Find out why mutual funds are not insured by the FDIC, including why the FDIC was created and how to minimize your risk with educated mutual fund investments.
  3. Personal Finance

    The History Of The FDIC

    Find out why this corporation was developed and how it protects depositors from bank failure.
  4. Investing

    Who Backs Up The FDIC?

    The FDIC insures depositors against loss, but what happens if it runs out of money?
  5. Insurance

    How the Federal Deposit Insurance Corporation (FDIC) Works

    Learn more about the Federal Deposit Insurance Corporation (FDIC) and what happens to your deposits over $250,000 if a member bank fails.
  6. Personal Finance

    Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  7. Investing

    FDIC Sues Bank of America Over Deposit Insurance

    In a lawsuit filed Monday, the FDIC says Bank of America owes at least $542 million for deposit insurance.
  8. Investing

    Certificates Of Deposit

    Safety is a hallmark of the traditional certificate of deposit (CD) sold by a bank or credit union.
  9. Small Business

    A New Plan To Prevent Future Bailouts

    This new and innovative plan by the FDIC could help the government avoid the next bailout.
Frequently Asked Questions
  1. Who are Monsanto's main competitors?

    Learn about Monsanto Company's two main operating divisions and its main competitors within each sector, including The Mosaic ...
  2. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ...
  3. Do I have to complete all exams within a certain period of time to receive the CFA charter?

    According to the CFA Institute, a candidate can take as much time as necessary to complete all three levels of the CFA program.Therefore, ...
  4. What is a reasonable amount of debt?

    It really depends on numerous factors - what stage of life you are at, your spending and saving habits, the stability of ...
Trading Center