Bank Insurance

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.