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Loanfactz Definitions

Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.

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All of F

FDIC

FDIC stands for the Federal Deposit Insurance Corporation. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. The FDIC protects you against the loss of your 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.

To check whether your bank or savings association is insured by the FDIC, call
Toll Free 1-877-ASK-FDIC (1-877-275-3342)
Hearing Impaired Line: Toll Free 1-800-925-4618

If your insured bank fails, FDIC insurance will cover your deposit accounts, dollar for dollar, including principal and any accrued interest, up to the insurance limit. The basic insurance amount is 100,000 dollars per depositor per insured bank.

You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. In addition, federal law provides up to $250,000 in deposit insurance coverage for self directed retirement accounts, such as Individual Retirement Accounts (IRAs).

The FDIC insures deposit accounts such as:

  • Checking accounts
  • NOW and savings accounts
  • Money market deposit accounts
  • Certificates of deposit (CDs)

The FDIC does not insure the money you invest in:

  • Stocks
  • Bonds
  • Mutual funds
  • Life insurance policies
  • Annuities
  • Municipal securities

The FDIC also does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.

Historically, insured funds are available to depositors within just a few days after the closing of an insured bank. Since the start of the FDIC in 1933, no depositor has ever lost a penny of insured deposits.

For more information visit
www.fdic.gov/deposit/deposits/insuringdeposits/index.html

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