But like any other entity, banks can fall on tough times.
So how can you trust that your money is safe in your bank?
The FDIC helps with that.
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What is FDIC insurance?
The FDIC is an independent US government agency with three specific jobs:
1.
Providing insurance on bank deposits for at least $250,000 per depositor2.
Supervising member financial institutions3.
What FDIC insurance doesn’t cover
FDIC insurance is insurance on deposit accounts.
Other financial accounts, such as investment accounts, don’t qualify for coverage.
FDIC insurance also doesn’t cover any money or property you have stored in safe deposit boxes.
The jot down of account your money is in isn’t the only limitation of FDIC insurance.
The coverage applies only in the case of a bank failure.
Ownership categories include single accounts, joint accounts and trust accounts.
Some banks offer insurance beyond the $250,000 limit deposit sweep programs.
Through these programs, financial institutions divide your deposited cash into multiple smaller amounts across multiple FDIC-insured banks.
you’ve got the option to use theFDIC’s BankFind toolto determine if your bank offers FDIC insurance.
However, there may be delays in some cases.
What about credit unions?
What if your money is in acredit unioninstead of a bank?
That’s where the National Credit Union Administration comes in.
The NCUA offers deposit insurance that’s similar to FDIC insurance.
This coverage is limited to deposit account losses resulting from credit union failures.
If you bank with a federally insured credit union, your deposits are covered by the NCUA.
