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What is FDIC Insurance?
by Sherry Tingley
It is hard to trust anyone these days especially
when it comes to money. Money talk is always serious talk which means that
people are very stringent when it comes to where they will be putting their
money. In these hard times, this is already the norm since money is so hard to
earn that it's almost impossible for someone to just put money anywhere. But
what if you want to put your savings in the bank? Would putting your money in
the bank be a much safer choice rather than just leaving it home in your closet?
The FDIC, or Federal Deposit Insurance Corporation was established in 1933.
Ever since its inception, no depositor has lost a single dime from their
FDIC-insured funds. The independent agency of the US government does not only
insure US citizens, they insure other citizens from other countries as well as
long as the banks they bank with are insured by FDIC.
An FDIC-insured account means that your bank account is backed by the US
government in full credit and full faith. This reputation is something that
other insurers cannot offer. Operating for over 70 years now, the FDIC is the
people's support system when or if their banks close. The insurance limit for
every account you open in an insured bank is $250,000. The agency however does
not insure money invested in mutual funds, stocks, bonds, life insurance
policies, municipal securities, and annuities even if the said investments are
made in insured banks. The other types of accounts that the FDIC does not cover
are safe deposit boxes and their contents. US treasury bills, notes or bonds are
not insured by the FDIC as well but they are backed by the US government.
But what does this deposit insurance cover?
FDIC-insured accounts range from checking, savings, money market deposit, to
time deposits and negotiable order of withdrawal (NOW). The depositors given
this insurance are those who bank with insured banks. Banking with an
FDIC-insured bank means your money is protected dollar for dollar. If you own
two accounts in two different banks and these banks are FDIC-insured, it means
that your two accounts also have the FDIC protection. This means that if these
two banks close, you will have an insurance of $250, 000 for each account. If
you have two accounts in one bank, you will not get two FDIC insurance, just
one.
For each bank that you bank with that is FDIC insured, you are covered for
$250,000. This insurance will run through until December 13, 2013. By 2014, the
said allocation per depositor will go back to $100,000 except for certain
retirement accounts which will retain their $250, 000 per depositor insurance in
every insured bank.
If your bank account is with an FDIC-insured bank and it closes, your money
will be protected. Although this is something that most of us never imagine to
happen, it is better to be safe than sorry.
Order personal
checks online and have them safely delivered in the mail. Discount codes
will save you money on your order. Order Today.
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