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What is
FDIC Deposit Insurance?
What is
FDIC Deposit Insurance?
The FDIC was created by Congress in
1933 to make the savings of millions of Americans secure. The FDIC
protects depositors' funds in the event of the financial failure of
their bank or savings institution. The FDIC does not protect against
losses due to fire, theft, or fraud, which are subject to other
protections such as hazard and casualty insurance. FDIC also does
not insure Non-Deposit Investment products (such as Stocks, Mutual
Funds, and Annuities) that may be sold at a bank or savings
institution.
When an institution is closed by its
chartering authority, the FDIC makes payment of insured deposits to
all of the failed institution's depositors as soon as possible,
usually on the next business day after the closing. Those depositors
who have funds in excess of the insurance limits receive the insured
portion of their funds as described above. They also may receive a
portion of their uninsured funds either at that time or as the
assets of the failed institution are liquidated.
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