Insurance is a wonderful thing, especially if you do not have to pay for it yourself! One of the most comforting types of insurance that any U.
S.
citizen can potentially take advantage of is an FDIC-insured bank account.
Created by the Glass-Steagall Act of 1933, the role of the Federal Deposit Insurance Corporation (FDIC) is to insure bank deposits of up to $250,000 per bank per depositor (as of this writing).
The FDIC promises to pay any bank customer the full deposit amount (up to the specified limit) should that bank fail or otherwise become unable to allow customers to withdraw their monies.
As can be inferred by the timing of the creation of the FDIC in the early 1930s, the corporation was founded as a response to the frequent runs on banks by bank customers that occurred during the Great Depression in the United States.
By insuring deposits, the FDIC contributes to the stability of the U.
S.
economy.
Essentially, even if a bank fails, individuals cannot lose their deposited funds.
This knowledge makes the entire economy more secure.
If you are wondering, "Are checking accounts protected by the FDIC?", here are 3 FAQs: 1.
Any type of deposit account is protected by the FDIC: The FDIC insures any type of deposit account, including savings, trusts, money market accounts, certificates of deposit (CDs), IRA retirement accounts - and checking accounts.
2.
Many other types of financial products are not covered, however: Financial products such as mutual funds, annuities, life insurance policies, stocks and bonds are NOT insured by the FDIC because they are not considered deposit accounts.
3.
How do I know if my bank is FDIC-insured? Given that the FDIC insures about 7,700 banks (as of this writing), chances are very good that your bank is insured.
However, to find out for sure, visit the FDIC website and click on "Bank Find.
" Or, just visit the website or a local branch of the bank in question and look for the words "FDIC Insured" appearing anywhere in plain view.
You may also see the phrase, "Deposits are backed by the full faith and credit of the United States Government," which is also a sign of FDIC insurance.
Consider these 3 FAQs as you learn more about which types of financial products - and which banks - are insured by the FDIC.
S.
citizen can potentially take advantage of is an FDIC-insured bank account.
Created by the Glass-Steagall Act of 1933, the role of the Federal Deposit Insurance Corporation (FDIC) is to insure bank deposits of up to $250,000 per bank per depositor (as of this writing).
The FDIC promises to pay any bank customer the full deposit amount (up to the specified limit) should that bank fail or otherwise become unable to allow customers to withdraw their monies.
As can be inferred by the timing of the creation of the FDIC in the early 1930s, the corporation was founded as a response to the frequent runs on banks by bank customers that occurred during the Great Depression in the United States.
By insuring deposits, the FDIC contributes to the stability of the U.
S.
economy.
Essentially, even if a bank fails, individuals cannot lose their deposited funds.
This knowledge makes the entire economy more secure.
If you are wondering, "Are checking accounts protected by the FDIC?", here are 3 FAQs: 1.
Any type of deposit account is protected by the FDIC: The FDIC insures any type of deposit account, including savings, trusts, money market accounts, certificates of deposit (CDs), IRA retirement accounts - and checking accounts.
2.
Many other types of financial products are not covered, however: Financial products such as mutual funds, annuities, life insurance policies, stocks and bonds are NOT insured by the FDIC because they are not considered deposit accounts.
3.
How do I know if my bank is FDIC-insured? Given that the FDIC insures about 7,700 banks (as of this writing), chances are very good that your bank is insured.
However, to find out for sure, visit the FDIC website and click on "Bank Find.
" Or, just visit the website or a local branch of the bank in question and look for the words "FDIC Insured" appearing anywhere in plain view.
You may also see the phrase, "Deposits are backed by the full faith and credit of the United States Government," which is also a sign of FDIC insurance.
Consider these 3 FAQs as you learn more about which types of financial products - and which banks - are insured by the FDIC.
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