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Federal Deposit Insurance Corporation

A corporation owned by the United States government that insures bank deposits up to a certain level, so as to reduce pressure for bank panics. Created by the Glass-Steagal Act of 1933, the FDIC backs all bank deposits and some retirement accounts with the full faith and credit of the United States up to either $100,000 or $250,000, depending on the type of account. This amount may be changed by statute. A bank must purchase bank insurance from the FDIC in order to be eligible for this coverage. The FDIC helps maintain consumer confidence in banks and, by extension, the financial system.


Federal Deposit Insurance Corporation (FDIC).

The Federal Deposit Insurance Corportion (FDIC) insures deposits in banks and thrift institutions, assuring bank customers that their savings and checking accounts are safe.

Currently, the coverage limits are $100,000 per depositor per bank for individual, joint, and trust accounts, and $250,000 for self-directed retirement accounts. Business accounts are also insured up to $100,000.

You qualify for more than $100,000 coverage at a single bank, provided your assets are in these different types of accounts.

For example, you are insured for up to a total of $100,000 in all accounts registered in your own name and for another $100,000 representing your share of jointly held accounts. In addition, your individual retirement account (IRA) is insured up to $250,000 if the money is invested in bank products, such as certificates of deposit (CDs).

However, if you purchase mutual funds, annuities, or other investment products through your bank, those assets are not insured by the FDIC even if they carry the bank name.

The FDIC, which is an independent agency of the federal government, also regulates more than 5,000 state chartered banks that are not members of the Federal Reserve System.


See Federal Deposit Insurance Corporation.

References in periodicals archive ?
The OIG did make clear the FDIC has a number of long-standing controls designed to mitigate risks associated with trusted insiders, including background investigations, periodic inspections of FDIC facilities to identify security concerns, employee nondisclosure agreements, a data loss prevention tool and programs to help employees with personal issues.
The FDIC has, in suits against bank officers and directors and two national appraisal management companies, identified by name approximately 350 appraisers (beyond those it has sued individually) as having performed allegedly negligent appraisals.
Exhibit 2: Current FDIC Assessment Rates Risk Risk Risk Risk Category I Category II Category III Category VI Initial Base 12-16 22 32 45 Assessment Rate Unsecured Debt -5 to 0 -5 to 0 -5 to 0 -5 to 0 Adjustment (added) Secured Liability 0 to 8 0 to 11 0 to 16 0 to 22.
The FDIC switched from the interim rule to the final rule in part to reduce the "pro-cyclical" effects of the special assessment because banks were struggling to lend money already.
But both of those annual totals pale in comparison with 1989, when 534 banks closed during the savings and loan crisis, according to the FDIC.
Perhaps the best option - although far from a happy one - is to have the FDIC tap its line of credit with the Treasury Department.
The total FDIC insurance limits on combined deposits listed in the four categories are: 1) total of all deposits in a single account holder's name, coverage limit of $250,000; plus 2) total of all retirement deposits, for example, Roth IRAs or regular IRAs, in a single account holder's name, add an additional coverage limit of $250,000; plus 3) joint-titled accounts with two or more persons, add an additional $250,000 per co-owner; plus 4) formal or informal revocable trust accounts, add an additional $250,000 per beneficiary, multiplied by the number of owners [12 CFR 330.
Had the FDIC failed to expand full coverage for IOLTA, lawyers would have had to consider abandoning IOLTA for fully insured noninterest bearing accounts or moving IOLTA funds from community banks to the larger 'too big to fail' banks," said ABA President H.
Of particular note is an attachment to the FIL that presents a detailed summary of selected provisions of the Sarbanes-Oxley Act that the FDIC believes are of relevance to FDIC-supervised banks with less than $500 million in total assets that are not public companies.
As the supervisor for bank holding companies, we coordinate supervision and share information with the Office of the Comptroller of the Currency, the FDIC, and the Office of Thrift Supervision when institutions they supervise are within bank holding companies.
Three days after Medcor took over the tax lien, the FDIC took over Dollar Dry Dock Bank, which held the restaurant's mortgage.
The applicable rate will be the rate that the FDIC determines (after taking into account certain statutory adjustments) necessary to cause the SAIF to achieve a designated reserve ratio on the first business day of the first month beginning after the Sept.