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Insured Account
(redirected from Insured Accounts)

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Insured account
A bank or financial account that is insured for the benefit of the depositor, protecting against loss in the event that the savings institution becomes insolvent. See: FDIC.

Insured Account
A bank account on which some organization has placed a guarantee that funds will be available to the account holder. That is, if the bank becomes insolvent, insured accounts are safe and depositors will be able to access/retrieve their money, at least up to a certain amount. These accounts are almost always insured by government-sponsored organizations, such as the FDIC. Insured accounts exist in order to reduce pressures that might result in bank runs.


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However, if a client has other personal funds on deposit in the same bank in insured accounts, the $250,000 limit applies to the combination of the client's personal and trust account deposits.
So great was the demand for the insured accounts that the assets in money market funds shrank by more than a third.
When banks and savings institutions were not able to pay their depositors, insured accounts met the challenge.
 
 
 
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