One of the major advantages of holding an account at an FDIC-insured bank is deposit insurance, which is how the FDIC safeguards your funds in the unlikely case of a bank failure.
What does FDIC insurance actually cover?
- Up to the insurance limit, the FDIC insures depositor accounts at each insured bank, dollar for dollar, including principal and any interest that has accumulated up to the date of the covered bank's closure.
The following are not covered by FDIC insurance:
- Safety deposit box contents
- stocks, bonds, or Treasury securities like T-notes are all examples of investments.
- investments in money market mutual funds or exchange-traded funds (ETFs).
- Only if your bank has FDIC (Federal Deposit Insurance Corporation) deposit insurance are your deposits covered.
- This insurance does not cover losses from fraud and theft, but it does cover deposits in the case of a bank failure.
To learn more about Federal Deposit Insurance Corporation refer,
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