When you put your money in a bank how safe is it? What if the bank is robbed, or if the bank goes out of business? What happens to your money?
If your bank is insured by the Federal Deposit Insurance Corporation (FDIC), then any money you deposit is safe and secure up to the insured amount. Basic FDIC insurance is $100,000 for each person, for each insured bank. This not only includes the principal (the amount you deposited), but also any interest your money has earned up to the insured amount. Some retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per person per insured bank.
The FDIC was started in 1933 during the Great Depression when many banks failed and many depositors lost their savings. To be insured by the FDIC, bank must meet high standards for financial strength and stability. The FDIC, among other government agencies, examines banks on a regular basis to make sure that these high standards are met. Banks that are insured by the FDIC will usually have a sticker on the door, or a sign somewhere in the lobby indicating so, or you click on the link below to go to the FDIC’s website for a listing of insured banks…
For more information on what types of accounts the FDIC insures, as well as the limits of FDIC insurance, click on the following link to the FDIC’s website…
FDIC Insured Deposit Information