What does "FDIC Insured" really mean?
Have you ever saw a sign or heard the jargon “FDIC Insured” at your brick and mortar bank or online savings institution? But what is FDIC insurance coverage and what’s in it for you?
FDIC is the acronym for the “Federal Deposit Insurance Corporation”. It is an independent organization of the U.S. Government; it was created by the U.S. Congress as part of the Banking Act of 1933. Through its Deposit Insurance Fund (DIF), the FDIC guarantees up to $250,000 of deposits per depositor per FDIC-insured bank or savings institution.
In simple words, if you put your money in an insured bank or savings institution, and the bank or institution fails, you’re guaranteed to get up to $250,000 of your money back per eligible account.
What happens if you put $500,000 in a Financial Institution and Bank fails during the Great Depression? We leave that question un-answered for you to ask Your Bank or F.A. (Financial Adviser)!