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Federal
Deposit
Insurance
Corporation |
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Insured or Not Insured?
So- you feel your cash is safe and
protected when you walk through the door of the bank, much safer than when you kept it
under your mattress. And you should. BUT, are your funds covered by FDIC insurance just
because you walked into a secure-looking building with iron bars and guards? Not
necessarily - it depends on which of the bank's products you decide to use.
What is
Insured?
You are probably familiar with the traditional types of bank
accounts- checking, savings, trust, and certificates of deposit (CDs) -- that are insured
by the FDIC. Banks may also offer what is called a money market deposit account, which
earns interest at a rate set by the the bank and usually limits the customer to a certain
number of transactions within a stated time period. Except for certain trust accounts
(where the assets of the account consist of securities rather than deposits), all of these
types of accounts generally are insured by the FDIC up to the legal limit of $100,000 and
sometimes even more for special kinds of accounts.
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