Bank insurance is commonly referred to as FDIC insurance. The Federal Deposit Insurance Corporation (FDIC) does insure deposits made into a bank up to $250,000 per separate depositor. FDIC coverage is for the unlikely event that bank should go bankrupt or become insolvent.
FDIC covered accounts include:
· checking accounts,
· negotiable order of withdrawal (NOW) accounts,
· savings accounts,
· money market deposit accounts (MMDAs),
· certificates of deposit (CD) and other time deposits, and
· official items issued by a bank (such as cashier's checks or money orders).
However, FDIC does not cover investment products that may have been purchased through an investment division of a bank. Those are covered by Securities Investors Protection Corporations up to $450,000 per separate account.
The FDIC maximum of $250,000 is paid per separate account ownership.
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What is the FDIC? The FDIC is the Federal Deposit Insurance Corporation. It provides insurance to banks for the deposits that their clients make. T...