Answers about FDIC Insurance

Does the FDIC insure national banks?

All national banks are required to insure customer deposits with insurance from the FDIC. At insured banks, the FDIC insures all deposits up to the insurance limit. This includes money deposited in the following accounts:

  • checking accounts
  • NOW accounts
  • savings accounts
  • money market deposit accounts
  • certificates of deposit (CDs)

The FDIC does not insure the money you invest in the following products, even if they were purchased from a bank with FDIC insurance:

  • stocks
  • bonds
  • mutual funds
  • life insurance policies
  • annuities
  • municipal securities

From the FDIC Web site: "All FDIC-insured banks must meet high standards for financial strength and stability. The FDIC, with other federal and state regulatory agencies, regularly reviews the operations of insured banks to ensure these standards are met. Even with these safeguards, some insured banks fail. If your insured bank fails, FDIC insurance will cover your deposits, dollar for dollar, including principal and any accrued interest, up to the insurance limit.

"Historically, insured deposits are available to customers of a failed bank within just a few days. Since the start of the FDIC in 1933, no depositor has ever lost a penny of insured deposits."

For more information about deposit insurance, see the FDIC's web page.

January 2010