Federal Deposit Insurance Corporation (FDIC)

The Federal Deposit Insurance Corporation (FDIC) is a United Stated Federal Government entity which insures deposits at banks and thrift institutions up to a maximum of $250,000. They were created in 1933 in the aftermath of banking failures in the late 1920’s and early 1930’s. No depositor has lost a penny of their funds which were under the maximum allowed by the FDIC.

The FDIC gets its money from fees charged to the institutions it insures as well as investment income from U.S. Treasury Securities. The FDIC does not use any tax dollars to operate or to insure the deposits, it receives no government appropriations.

They insure the following types of accounts held at an FDIC insured bank:

  • Checking
  • Savings
  • Money Market Deposit Accounts
  • Trust
  • Certificates of Deposit (CD’s)
  • and IRA Retirement Accounts

The DO NOT insure:

  • Investments in
    • Stocks
    • Bonds
    • Money Market Mutual Funds
    • Mutual Funds
  • Annuities
  • Life Insurance

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