Are Funds In A Bank Account Insured?

At one point in the past, I received a question asking "are funds in a bank account insured" for an individual account.

First, let's remember that there are several different types of accounts that an individual can have and different protection applies based on several things such as: the types of accounts, what country you are in and what country the accounts are in.

I'm not sure if this question was directed towards a brokerage account or savings, checking, CD's, mutual funds or any other types of accounts out there, but I'll target bank accounts in this article specifically (in the United States).

Most bank accounts such as savings, checking, IRA's and CD's are insured by the Federal Deposit Insurance Corporation (FDIC). I say "most" because I do not want to mislead you because as I mentioned above, it can depend on things such as country or even if the bank is a member of the FDIC or not.

You can check the FDIC's website to find out information on your bank and/or contact them and can send them a friendly email, letter, call or even visit them and ask them in person.

FDIC Insurance Coverage Basics

The FDIC - short for the Federal Deposit Insurance Corporation - is an independent agency of the United States government. The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails.

Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.

FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC began operation in 1934, no depositor has ever lost a penny of FDIC-insured deposits.

Are Funds In Bank Accounts Insured?

Mutual Funds are NOT FDIC insured (I believe in all cases they are not but check to be sure). Brokerage accounts holding stocks, bonds, treasuries, mutual funds are NOT FDIC insured neither, nor are life insurance policies or annuities.

Accounts that are insured by the FDIC are generally insured up to $250,000. The limit can vary based on specific kinds of accounts and the ownership of those accounts.

Here are a few links to the FDIC's website to find out complete and current details:

And here is a video from the FDIC to help understand more about what the FDIC is and how it works:

Unlike funds in a bank account insured, brokerage accounts are protected by a different program altogether. The next article goes into this here: funds in a brokerage account insured




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