How does federal insurance on bank accounts work?

Asked by Brady

1 Answer

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Answered by Martin Leclerc, Financial Adviser in Bryn Mawr, PA
Deposit insurance works through the FDIC which is a US government corporation created by the Banking Act of 1933.

Currently, deposit insurance guarantees the safety of a depositor's account in member banks up to $250,000. The FDIC is funded by premiums that banks pay for deposit insurance coverage; and from earnings on U.S. Treasury securities holdings.

Since the start of FDIC insurance in 1934, no depositor has lost any insured funds as a result of a failure.

For a full explanation of how Deposit insurance works and the types of qualifying deposits, please visit the website:

http://www.fdic.gov/deposit/.
| 11.04.13 @ 23:12
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