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What is the difference between FDIC insurance and SIPC protection?

April 26, 2017difference FDIC Insurance sipc

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What is the difference between FDIC insurance and SIPC protection?

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Savings The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 in accounts held at FDIC member banks. It is meant to protect account owners in case a bank fails and cannot refund their money. IRA Savings Accounts and IRA CDs opened with ING Bank, fsb, are FDIC-insured. Investments The Securities Investor Protection Corporation (SIPC) provides account protection for securities and cash in a brokerage account. Unlike FDIC insurance, it is meant to protect investors in case their brokerage firm fails financially and is unable to meet its obligations to its clients. This account protection does not protect against losses from the rise and fall in the market value of investments. ShareBuilder accounts have SIPC account protection.