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The Curious Bag
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The FDIC is the Federal Deposit Insurance Corporation that insures deposits of account holders against bank failure. This is a federal corporation and its objective is to encourage consumer confidence in the banking system.
Deposit Amounts
Currently the FDIC insures up to $250,000 per account, per insured bank. Normally the amount of coverage is $100,000, but as of 2009, this amount was not scheduled to go back into effect until Dec. 21, 2013.
Extended Coverage
The FDIC insures a government account, also called public unit accounts, up to $250,000 for each account.
Eligibility
Deposits in certain accounts such as savings, checking, money market accountsand CD's are eligible accounts for FDIC coverage.
Bank Failure
A bank fails when its liabilities exceeds its assets. Once this happen, the FDIC steps in and pays off its insured depositors or sets them up with another account with a different bank.
FDIC Security
The FDIC is backed by the full faith and credit of the United States government and as of 2009, depositors insured by this federal corporation hadn't lost a penny due to a bank failure.
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