What is FDIC insured?
The FDIC is an independent agency of the federal government created in 1933 in response to the thousands of bank failures that occurred in the 1920’s and early 1930’s. The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions The FDIC insures deposits only. It does not insure securities, mutual funds or similar types of investments that banks and thrift institutions may offer; nor does it insure funds in any institutions that do not fit the definition of a bank or thrift institution as defined in the original statute. Financial institutions such as brokerage firms or investment banks do not meet the statautory definition of a bank or thrift. The FDIC is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. Savings, checking and other deposit accounts, when combined, are general
