Learn about FDIC

Dear Readers, 

I am sure most of us want to protect our hand earned money, But if we look at today economic situation  around the world its very unstable and no one know what's going to happen & which financial institution is going to collapse. I am sure most of us know that central banks provide insurance to deposits. 

• In USA FDIC (Federal Deposit Insurance Corporation). Credit unions are not covered by FDIC insurance. Instead they have NCUSIF protection.
• In India DICGC (Deposit insurance and credit guarantee corporation)

There are many more more deposit insurance provider in different countries. for more information about these please look into WIKI. If you want to check weather bank covered under FDIC or not please visit the following URL (this URL is from FDIC office website) http://www2.fdic.gov/idasp/main_bankfind.asp

But there are some restrictions on the amount of deposit they cover. For example in India DICGC will provide the protection for 100K (1,00,000) Rs/-, In USA FDIC provide protection for $100,000/depositor & $250,000 in certain retirement accounts per depositor. Lets look into details what is covered & what not by FDIC. 

What is Covered

FDIC insurance applies to all deposits at covered banks. This includes:

• Checking accounts
• Savings accounts
• CDs
• Money market accounts (but not money market funds, don't get confused with Money market account & funds)

FDIC insurance does not cover:

• Safety deposit box contents
• Investments such as mutual funds or stocks
• Insurance products such as annuities

How this works: deposits done by USA citizen or any USA resident in any FDIC insured bank will be covered. For more details visit FDIC website. In Next article i will write more about NCUSIF & Credit unions.  

I am sure this information will be very helpful for all of you, if you think this information will be help full to your friends please share this URL with your friends. please add your comments so that i can improve and share better information with all of you.