What is FDIC Insurance?
The FDIC—or Federal Deposit Insurance Corporation—is a U.S. federal agency that protects you against the loss of your deposit accounts (such as checking and savings) if your FDIC insured bank fails. The basic FDIC insurance amount is $250,000 per account holder per insured bank for deposit accounts and $250,000 for certain retirement accounts deposited at an insured bank. These insurance limits include principal and accrued interest. Important note: FDIC coverage on deposit accounts was temporarily increased from $100,000 to $250,000 on October 3, 2008. The FDIC limits will revert to $100,000 on December 31, 2009.1 The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, and money market funds, even if these investments were bought from an insured bank.
Federal Deposit Insurance Corporation is an independent agency of the U.S. government that protects you against the loss of your deposits if any FDIC-insured bank or savings association fails. There is no need to apply for FDIC insurance – coverage is automatic and backed by the full faith and credit of the U.S. government.
The Federal Deposit Insurance Corporation (FDIC) is both the primary regulatory agency for commercial banks and its account insurer. This combination of watchdog and protector has worked well for the most obvious reasons. By examining and evaluating commercial banks, FDIC has first hand knowledge of the operations,stability, and profitability of their institutions. By having some measure of control over the “safety and soundness” of the banks they insure, the FDIC can more confidently issue their insurance coverage. This should make depositors more comfortable, too. All banks who qualify for FDIC insurance have been deemed safe and sound by the agency. Certainly, FDIC encounters institutions enduring some problems. When they do, they offer suggestions sometimes, mandates to help correct issues that cause problems.
FDIC stands for the Federal Deposit Insurance Corporation, which is an independent agency of the U.S. Government. The FDIC insures deposits at all federal and some state-chartered banks, savings associations, and industrial loan companies. Wachovia is a member of the FDIC. Please see FDIC: Insuring Your Deposits for more information.
