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. 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.
  2. Investing

    Who Backs Up The FDIC?

    The FDIC insures depositors against loss, but what happens if it runs out of money?
  3. 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.
  4. Personal Finance

    Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  5. Personal Finance

    9 Tips For Safeguarding Your Accounts

    When it comes to keeping your money safe, don't rely on the FDIC - there's much more you can do.
  6. Personal Finance

    The 7 Best Places To Put Your Savings

    You work hard to put your money away for the future, but where you should you keep it?
  7. Insights

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  8. Trading

    Financial Regulators: Who They Are And What They Do

    Find out how these government agencies govern the financial markets.
  9. Personal Finance

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center