How Safe Is Your Money in a Bank?
When you deposit your money in a bank, it's safe because your funds are insured by the Federal Deposit Insurance Corp. (FDIC). If the bank should fail, your money is covered, but only up to a certain limit.
Other People Are Reading
-
FDIC Insurance
-
The FDIC insures your money up to $250,000 per depositor and per type of account. The types of accounts insured are checking and savings accounts, certificate of deposits and money market accounts.
Bank Security
-
The FDIC is a federal agency that became active in 1934. Customers can feel safe and secure about their money if it's in an FDIC-insured bank. No bank depositor has lost money covered by the FDIC since it was created.
-
Identification
-
If you are not sure if your bank is FDIC insured or if you are not certain which accounts are insured, call the FDIC at 1-877-275-3342. FDIC-insured banks will also have signs posted by the teller windows that tell you the bank has FDIC coverage for its accounts.
When a Bank Fails
-
If a bank becomes inoperable or fails, the FDIC will step in and take the necessary steps to protect its assets. One of the procedures is to sell all of the bank's deposits and loans to another bank. You can then access your funds through the other bank.
Retirement Accounts
-
If you have certain retirement accounts in the bank, such as an IRA, they could also be covered up to $250,000 per depositor. Not all retirement accounts are available for this coverage, however. Call the FDIC to be sure.
-
