FDIC...
What is the FDIC?
The FDIC - short for the Federal Deposit Insurance Corporation - is an independent agency of the United States government. The FDIC was created by Congress in 1933 to make the savings of millions of Americans secure. The FDIC protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
What is the Purpose of FDIC Deposit Insurance?
The FDIC protects depositors' funds in the unlikely event of the financial failure of their bank or savings institution. FDIC deposit insurance covers the balance of each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing.
What is the FDIC insurance amount?
The basic insurance amount is $100,000 per depositor, per insured bank. This includes principal and accrued interest up to a total of $100,000. For example: Jane Smith has a CD in her name alone with an original balance of $98,000. Jane has interest earned of $ 3,000. Jane's account now totals $101,000. But, Jane is only insured up to $100,000 and $1,000 is uninsured.
