Tip Of The Day: Keep Your Money At An FDIC-Insured Bank

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the US government that protects you against the loss of your money, if a bank or savings association fails. FDIC insurance is backed by the the US government. Since the FDIC's creation in 1933, no depositor has lost their money out of FDIC-insured funds.

The FDIC insures deposits in most, but NOT ALL, banks and savings associations. Deposits in separate branches of an insured bank are not separately insured. Deposits in one insured bank are insured separately from deposits in another insured bank. All insured institutions must display an official FDIC sign at each teller window or teller station.

If you and your family have $250,000 or less in all of your deposit accounts at the same insured bank or savings association, your deposits are fully insured. A depositor can have more than $250,000 at one insured bank or savings association and still be fully insured, provided the accounts meet certain requirements. In addition, federal law provides insurance coverage of up to $250,000 for certain retirement accounts.

The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities.

To make sure your bank or savings association is FDIC-insured call their toll-free number 1-877-ASK-FDIC or go to www.fdic.gov/edie/index.html.