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.



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