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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 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.
Citing a statute from the Federal Institutions Reform, Recovery and Enforcement Act of 1989, which was designed to ensure a sound financial system for handling defaults on mortgages, Beal Bank argued that as an assignee of the FDIC it should be able to claim ownership of the property.
The FDIC will work with the banking industry to ensure that all bank customers are fully informed of the risks they are assuming when purchasing mutual funds and other investment products that do not carry federal insurance,'' Helfer said in a statement.
There's no doubt," says John Bovenzi, William Seidman's deputy at the FDIC.
Descriptions of how institutions currently identify FDIC insurance fees
Beyond the importance of high levels of FDIC insurance, the Ultra Insured Money Market Account helps individuals and joint account holders consolidate multiple banking relationships into one convenient account, enables businesses to earn interest with limited account transactions, and provides an interest-bearing solution for public entities that are mandated to have deposits either FDIC-insured or backed by U.
The fees continued to be collected under the FDIC name even after the warning.
The FDIC revised three different groups of rules and regulations for international banking, consolidating them into one regulation, Part 347.
The FDIC had purchased the land above the Las Virgenes Reservoir in 1989 from a failed savings and loan.
Although these provisions do not prohibit the Federal Reserve from lending to such institutions, they specify that the Federal Reserve will incur a limited liability to the FDIC for lending that extends beyond certain time periods and that results in increased losses to the FDIC's insurance funds.
Soon after, the bank failed and the FDIC sued the law firm for restitution.