The FDIC and You

Executive Summary about FDIC Banks by Raymond Walkoczy

The Federal Deposit Insurance Corp. or as it’s better known, FDIC, is a government agency insurance fund designed to protect depositors from a bank failure and a loss of their savings up to $250,000.

Today, the FDIC insures the deposits of more than 8,000 banks and savings associations with $13 trillion in assets and includes $9 trillion in customer deposits.

When a bank failure occurs, the FDIC reimburses customer deposits from it’s Deposit Insurance Fund, financed by insurance premiums paid to it by it’s member banks.

In the 21 months that followed, 128 banks had failed leaving the Deposit Insurance Fund with a negative $300 million. The FDIC predicts that due to the rapid increase in bank failures, the Deposit Insurance

Fund deficit will soon reach $100 billion.

CD Rates Safe in Light of FDIC Losses

Executive Summary about FDIC Banks by Michael Jameiosn

The FDIC currently has 416 banks on its troubled banks list and has already closed 81 banks so far this year.

With the FDIC funds at such low levels, there’s no concern over funds not staying insured however. All FDIC insured funds will stay insured however.

After a FDIC takeover of a bank, accounts are usually still able to be accessed. It’s rare that the FDIC can’t find another bank to take over the accounts of a failed bank.

If you have more than the insured limit, there’s no guarantee you’ll get your money back if the bank fails.

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