Why is FDIC insurance important to depositors?
All FDIC-insured banks must meet standards for financial strength. Along with other federal and state regulatory agencies, the FDIC reviews the operations of insured banks on a regular basis to ensure these standards are met. Q: What does the FDIC insure? A: The FDIC insures bank deposits. FDIC insurance covers deposits in checking, Negotiable Order of Withdrawal (NOW) and savings accounts, money market deposit accounts and time deposits (CDs). FDIC deposit insurance covers the balance of each depositor’s account, dollar-for-dollar, up to the insurance limit, this includes principal and any accrued interest. The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments were bought from an insured bank. Q: How much coverage do depositors have? A: The basic insurance amount is $100,000 per depositor. Customers who maintain retirement accounts are insured up to $250,000 per owner separately fro
