Insured Financial Institution

DEFINITION of 'Insured Financial Institution'

Any bank or savings institution that is covered by some form of deposit insurance. Of course, virtually all eligible banks and savings institutions carry this protection. Both state and national banks are required by law to have FDIC coverage.

BREAKING DOWN 'Insured Financial Institution'

The vast majority of banks and savings institutions have been insured since the FDIC was created during the Great Depression. Savings and loans and federal banks are insured by the Savings Association Insurance fund. Credit unions are covered by the National Credit Union Share Insurance Fund. As of 2009, the FDIC coverage limit was $250,000 per depositor.

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RELATED FAQS
  1. Are all bank accounts insured by the FDIC?

    The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects you against ... Read Answer >>
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  4. Does the FDIC cover business accounts?

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