Archive for April, 2013

What is FDIC insurance?

Monday, April 15th, 2013

FDIC insurance, insuranceThe FDIC insurance is the Federal Deposit Insurance Corporation insurance which is provided by most of the banks to secure the future of the account holders in many countries like United States of America. The insurance is provided to the account holders in case of emergencies like if the bank suffers from any kind of fatal loss or if it goes out of business. Apart from a few type of financial accounts, FDIC insurance covers all the other accounts.

FDIC insures savings accounts, certificate or checking of deposit accounts etc. Generally, annuities of life insurance or mutual funds are not covered by FDIC insurance. You can check the FDIC website online to know more about their insurance terms and conditions. The insurance is done to ensure that you do not face any kind of loss even if the bank runs out of business. It is advised to open account in only such banks that provide the FDIC insurance to account holders.