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While you can't completely protect your investments, there are some measures you should know about.
The Federal Deposit Insurance Corp., or FDIC, is
an independent agency of the federal government. It protects consumers
and businesses against the loss of insured deposits if an FDIC-insured
institution fails.
FDIC insurance covers funds in deposit accounts
-- checking, savings, money market accounts and CDs. It does
not cover stocks, bonds, mutual funds, life insurance, annuities or municipal
securities.
FDIC coverage is automatic; you do not need to apply.
The FDIC provides separate coverage for deposits held in different account ownership categories.
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| Basic FDIC deposit insurance coverage limits* |
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| Single accounts (owned by one person) |
$250,000 per owner |
| Joint accounts (two or more persons) |
$250,000 per co-owner |
| IRAs and certain other retirement accounts** |
$250,000 per owner |
| Trust accounts |
$250,000
per owner, per beneficiary, subject to specific limitations and requirements |
| Corporation, partnership and unincorporated association accounts |
$250,000 per corporation, partnership or unincorporated association |
| Employee benefit plan accounts |
$250,000 for non-contingent, ascertainable interest of each participant |
| Government accounts |
$250,000 per official custodian |
| Noninterest bearing
transaction accounts |
Unlimited coverage -- only at participating FDIC-insured banks and savings associations*** |
*On Jan.1, 2013, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner.
**Certain Retirement Accounts are deposits owned
by one person and titled in the name of that person's retirement account.
Accounts that qualify are traditional IRAs; Roth IRAs; Simplified Employee
Pension, or SEP, IRAs; Savings Incentive Match Plan for Employees, or
SIMPLE, IRAs; Section 457 deferred compensation plan accounts; self-directed
defined contribution plan accounts; and self-directed Keogh plan accounts.
***Unlimited deposit insurance coverage is available through Dec. 31, 2009, for non-interest bearing transaction accounts at institutions participating in the FDIC's Temporary Liquidity Guarantee Program.
For more information, visit www.FDIC.gov.
Source: Federal Deposit Insurance Corp. |
