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One of the most prominent symbols in the banking industry is "Member FDIC." This stand for the Federal Deposit Insurance Corporation. They insure deposits of nearly every U.S. bank and loan and savings institutions up to $100,000 per customer (individual or business) in the event of a bank failure. Retirement accounts are insured for as much as $250,000.

What does FDIC cover?
Savings accounts that you can withdraw from or add money to at any time.
 - Regular checking accounts and ones that earn interest (NOW accounts) as well Money Market Accounts (MMDAs). MMDAs are savings accounts that allow for a certain amount of checks to be written every month.
 - Certificates of deposit (CDs). These accounts typically require that you keep a certain amount of funds in the account for a specific time frame -- otherwise known as the maturity. 

What doesn't FDIC cover?
 - Bonds, mutual funds and stocks.
 - United States Government backed investments, i.e. savings bonds and Treasury securities.
 - Safe deposit boxes. These are not considered deposit accounts. They are storage spaces rented to customer's by the banks. It is important to note that a renter's or homeowner's insurance policy very well may cover the items in your safety box in the event of theft or damage.
 - Losses as a result of fraud or theft at the institution. However, banks have special insurance policies purchases from private companies that cover these instances.
 - Instances of error on your account. In these situations, there may be remedies for consumers under state contract law, the Uniform Commercial Code and some federal regulations, depending on the type of transaction.
 - Annuity and insurance products, i.e. life, home and auto insurance.

Mutual funds or MMDA
These two products have similar names but are very different from one another. Funds that invest primarily in government securities or short-term corporate bonds and are not deposit accounts insured by the FDIC are called money market mutual funds. MMDAs are deposits and, as mentioned, are covered by FDIC insurance.

Even though the basic federal insurance amount is $100,000, you can are entitled to obtain more than $100k of coverage if your funds are kept in different ownership categories. For example, you can obtain coverage for as much as $100,000 for your individual accounts at the bank, another $100,000 for your share of joint accounts at the same bank and yet another $250,000 for your retirement accounts there.

Unprotected CDs
It is important to note that there are a variety FDIC-insured CDs being sold through deposit brokers and offered by financial institutions that have have out of the ordinary features that may result in the FDIC protecting only the principal during the term of the CD

For example, a ten-year CD with a varying interest rate dependant on the rise and fall of the stock market, that has no definite minimum interest rate and pays only when the CD matures in ten years instead of accumulating interest on a monthly or daily basis.

Credit unions
The federal agency that insures deposits in federal credit unions and state credit unions that are federally insured is called the National Credit Union Administration. Deposits of member institutions are insured up to $100,000 per customer (individual or business).



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