FDIC Insured Account

AAA

DEFINITION of 'FDIC Insured Account'

An account that meets the requirements to be covered or insured by the Federal Deposit Insurance Corporation (FDIC). An FDIC Insured Account has to be in a bank that is a participant of the FDIC program. The different accounts that can be FDIC insured are NOW, checking, savings, Certificate of Deposits (CD) and money market deposit accounts. Accounts that do not qualify as FDIC insured accounts are safe deposit boxes, investment accounts (stocks, bonds, etc.) mutual funds, life insurance policies, etc.






INVESTOPEDIA EXPLAINS 'FDIC Insured Account'

If a depositor wants an FDIC insured account, it is important to make sure that the desired bank is a participant of the FDIC program. Banks that are participants of the FDIC, are required to display an official sign at each teller window or station where deposits are regularly received. The maximum dollar amount that is insured in a qualified account is $250,000 per bank. In other words, it is possible for a depositor to deposit $1 million in four different banks and each account will be fully insured.







RELATED TERMS
  1. Risk-Based Deposit Insurance

    Deposit insurance with premiums that reflect how prudently banks ...
  2. Regulation W

    A Federal Reserve regulation that established terms for transactions ...
  3. Money Market Account Extra - MMAX

    An account structure that provides depositors with the ability ...
  4. IDC Deposits

    IDC Deposits Corp. oversees the MMAX (Money Market Account Extra) ...
  5. Federal Deposit Insurance Corporation ...

    Passed in 1991 at the height of the Savings and Loan Crisis (S&L), ...
  6. FDIC Problem Bank List

    A list of commercial banks in the U.S. that are considered to ...
Related Articles
  1. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  2. Are My Investments Insured Against Loss?
    Home & Auto

    Are My Investments Insured Against Loss?

  3. All About Banking
    Savings

    All About Banking

  4. The History Of The FDIC
    Retirement

    The History Of The FDIC

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center