What Is the FDIC and How Does It Work?
What Is the FDIC and How Does It Work? The Federal Deposit Insurance Corporation (FDIC) was set up as a response to the number of bank failures during the Great Depression in the 1930s. It is an agency that is backed by the government and insures the money that you have deposited in your bank in the event that the bank fails. If you are a member of a credit union you will receive similar coverage through the National Credit Union Administration (NCUA). It is important to check to make sure that your bank or credit union is a member of one of these associations so that your money is protected. Answer: It is important to fully understand the FDIC guidelines so that you can take advantage of them. The FDIC will only guarantee the first $100,000 dollars in your account. Some retirement accounts may be insured up to $250,000. The accounts that are insured are deposit accounts such as checking accounts, savings accounts, money market savings accounts, IRAs, and CDs. They do not insure any in
