The Federal Deposit Insurance Corporation (FDIC) is a U.S. government corporation that was established as a result of the numerous bank failures from the Great Depression. FDIC insurance covers checking and savings deposits at any FDIC insured bank. If the bank were to go belly-up, your bank accounts would insured up to $100,000. The following types of accounts are covered by FDIC insurance:
- Checking accounts
- Savings accounts
- Money Market deposit accounts
- CDs
- Cashier’s Checks
An important key to remember is that accounts at different banks are insured separately. You can get $100,000 of insurance at each bank you have deposits. Also, accounts in different ownerships (i.e. joint accounts and trust accounts) can be considered separately for the $100,000 insurance limit.
If you are not sure if your bank is FDIC insured, call them and ask. It would be much better to find out before they go under, than after! If they aren’t covered by FDIC (which I doubt is the case, because most banks are) then just find another bank. It really isn’t difficult to find an FDIC insured bank at all.
You can always try ING Direct (yes, they are FDIC insured) – they are my favorite bank and here are 10 reasons why I love them so much!
Related posts:
- What’s a Money Market?
- What is a CD?
- Should I pull my money out of the bank?
- Find the highest rates on savings accounts with Bankfox
- National City offers $150 gift card to open a checking account
- The best place to save money
- Virtual Bank account
- $50 for a few minutes
{ 3 comments… read them below or add one }
I have a Question. What is a World Bank? Would it be better to have money in a World Bank if there is a depression? Is your money guarented in a world bank? and if so how much? Also if your money is better off in a World Bank, how would you find a world bank in the U.S. Thanks for your time
@Carma
I don’t know too much about the World bank, but you can probably find some of your answers here…
http://en.wikipedia.org/wiki/World_Bank
does it cost more to open a account at an FDIC insured bank then it normally would at a bank that is not FDIC insured?