Personal Financial Literacy, Module 2, FDIC info
What is the insurance coverage limit?
$ 250,000 per depositor, per ownership category, per FDIC ensured bank
Advantages of keeping your money in financial institution
- It allows quick access to your money. - You are insured against losses up to the federal maximum amount. - It is cheaper than other possible alternatives. - It helps with establishing credit and getting loans. It is a popular thing to do. - It provides a safe place for your money.
Which kinds of accounts are insured by FDIC at participating financial institutions?
- Money Market Deposit Accounts - passbook savings accounts - checking accounts -statement savings accounts - certificate of deposits (CDs)
Exception: Owners of accounts in different ownership categories...
... may qualify for more than $250,000 protection.
October 1, 2017, the Share Insurance Fund includes...
...all assets and liabilities related to the Corporate System Resolution Program, which were previously accounted for in the Temporary Corporate Credit Union Stabilization Fund.2
National Credit Union Share Insurance Fund was created by Congress in 1970 to insure member's deposits in federally insured credit unions.
Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member's interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States. Credit union members have never lost even a penny of insured savings at a federally insured credit union.1
EDIE the Estimator
Electronic deposit insurance estimator
FDIC
Federal Deposit Insurance Corporation
Savings and loans associations are similar to credit unions.
They are financial institutions that are overseen by the Office of the Comptroller of the Currency. They concentrate on savings accounts and loans, especially for construction.
Business, employee benefit plan and government accounts
also qualify for FDIC insurance
Single account
an account owned by one person with no beneficiaries. All single accounts at same bank are added together and are insured up to $250,000
Revocable trust accounts and irrevocable trust accounts
are 2 distinct ownership categories, that involve deposits that name beneficiaries, these accounts must meet specific requirements for owner to qualify for per-beneficiary deposit insurance coverage. Specific coverage amounts depend on the type of trust and number of beneficiaries named by owner
President Franklin Delano Roosevelt signed the Federal Credit Union Act into law on June 26, 1934
authorized the formation of federally chartered credit unions in all states, helping to make more credit available, and promote the principle thrift through a national system of nonprofit, cooperative credit unions.
what source of funding is used by fdic to pay insured depositors of a failed banks?
consists of premiums already paid by insured banks and interest earnings on its investment portfolio of U.S. Treasury securities. No federal or state tax revenues are involved.
Joint account
deposit account owned by two or more people with no beneficiaries. Each co-owner share of all joint accounts at the same insured bank added together and insured up to $250,000
Self-directed retirement accounts
insured under the certain retirement accounts ownership category. If individual has more than one eligible self-directed retirement account at the same bank, the FDIC adds up the deposit held in each account and insures the total amount up to $250,000
