Federal Deposit Insurance Corporation

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Federal Deposit Insurance Corporation (FDIC)

A federal institution that insures bank deposits.

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 agency that insures deposits at commercial banks to a limit of $100,000 per depositor or combination of depositors at each insured bank. This insurance also applies to certificates of deposit sold through retail brokerage houses. The insurance fund is financed by a small fee paid by the banks based on the amount of their insured deposits.

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.

Federal Deposit Insurance Corporation (FDIC)

An independent agency (www.fdic.gov) created by Congress in 1933. It supervises banks, insures deposits up to $100,000 per depositor per institution,and acts as a receiver and liquidator for failed banks.

References in periodicals archive ?
Most of these results thus suggest that FDIC insurance was more appealing and necessary for weaker banks.
The account is considered a single account for an individual, and a single $250,000 FDIC insurance coverage is applied in the following situations: The account is in the name of a business that is a sole proprietorship (e.
They found a way to allow smaller banks to continue to compete for deposits while providing customers the added protection of FDIC insurance.
Even with recent increases in FDIC insurance premiums, one in five banks could go under and utterly deplete the FDIC backstop long before the last depositor is made whole.
29 July 2014 -- New York-based Metropolitan Commercial Bank said that it has begun offering expanded FDIC insurance through the bank's recently launched Ultra Insured Money Market Account.
Senate joined the House of Representatives, which earlier approved including IOTA accounts in the temporary extension of unlimited FDIC insurance.
Companies can still keep money on deposit in banks, earn interest and be fully protected by FDIC insurance, though, thanks to a product that has spread from wealthy individuals to corporate cash investors.
NEA-Sponsored CDs and Money Market Accounts offer yields that have consistently been among the highest nationwide and FDIC insurance up to $100,000 per depositor.
A separate study released in January by Prophet Market Research of San Francisco, which examined brokers at 50 large banks, found one in four brokers weren't telling customers the investments lacked FDIC insurance, or otherwise failed to follow bank regulators' investments sales guidelines.
The least liquid and most risky assets remain in the bank under the FDIC insurance umbrella, while the more liquid and less risky assets are removed from the bank.
The combination of reserve requirements and FDIC insurance premiums raises the costs of bank deposit offerings and puts them at a competitive disadvantage against other investment products.
For example, both the Certificate of Deposit Account Registry Service and the Federally Insured Cash Account offer full FDIC insurance coverage and yield in excess of the U.