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.

RELATED TERMS
  1. FDIC Insured Account

    A bank account that meets the requirements to be covered or insured ...
  2. Bank Insurance

    A guarantee by the Federal Deposit Insurance Corporation (FDIC) ...
  3. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  4. Savings Association Insurance Fund ...

    A government insurance fund for savings and loans and thrift ...
  5. FDIC Problem Bank List

    A list of commercial banks in the U.S. that are considered to ...
  6. Assisted Merger

    The merger of two or more financial institutions undertaken with ...
Related Articles
  1. Personal Finance

    The History Of The FDIC

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

    Certificates Of Deposit

    Safety is a hallmark of the traditional certificate of deposit (CD) sold by a bank or credit union.
  4. Personal Finance

    Are Your Bank Deposits Insured?

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

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  7. Insights

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  8. 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.
  9. Personal Finance

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
RELATED FAQS
  1. Are 401ks FDIC insured?

    Learn what part of your 401(k) retirement plan is covered by FDIC insurance, and what part is not. Find out what happens ... Read Answer >>
  2. Does the FDIC cover business accounts?

    Learn what types of business accounts are insured by the FDIC, and find out how much of the deposits made by a business are ... Read Answer >>
  3. Does the FDIC cover identity theft?

    Learn whether or not identify theft is covered by the FDIC, and find out what steps you can take to prevent or report identity ... Read Answer >>
Hot Definitions
  1. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  2. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
  3. Collateral Value

    The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal ...
  4. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  5. Current Account

    The difference between a nation’s savings and its investment. The current account is defined as the sum of goods and services ...
  6. Liability

    Liabilities are defined as a company's legal debts or obligations that arise during the course of business operations.
Trading Center