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Federal Deposit Insurance Corporation coverage — a US government guarantee that protects money in a bank account if the bank fails, up to a set limit.
Why It Matters
FDIC coverage is why a savings account is treated as a safe place for money you cannot afford to lose. The standard limit is $250,000 per depositor, per insured bank, per ownership category — so someone holding more than that at one bank is only covered up to the limit. It is also worth knowing what FDIC does NOT cover: stocks, bonds, mutual funds and money market funds are not insured, even when bought through a bank.
Key Points
- Protects bank deposits if the bank fails, up to $250,000 per depositor, per bank, per ownership category.
- Covers checking, savings, money market deposit accounts and CDs.
- Does NOT cover investments — stocks, bonds, funds — even if bought at a bank.
Related Terms
Common Questions
Federal Deposit Insurance Corporation coverage — a US government guarantee that protects money in a bank account if the bank fails, up to a set limit. FDIC coverage is why a savings account is treated as a safe place for money you cannot afford to lose. The standard limit is $250,000 per depositor, per insured bank, per ownership category — so someone holding more than that at one bank is only covered up to the limit.
FDIC coverage is why a savings account is treated as a safe place for money you cannot afford to lose. The standard limit is $250,000 per depositor, per insured bank, per ownership category — so someone holding more than that at one bank is only covered up to the limit. It is also worth knowing what FDIC does NOT cover: stocks, bonds, mutual funds and money market funds are not insured, even when bought through a bank.
Protects bank deposits if the bank fails, up to $250,000 per depositor, per bank, per ownership category.
Covers checking, savings, money market deposit accounts and CDs.
Does NOT cover investments — stocks, bonds, funds — even if bought at a bank.