Helpful Home Improvement Tips: FDIC Insurance
Federal Deposit Insurance Corporation Explained
Hey everyone. Tyler here for another Safepact.com video question of the day where I take some of the most commonly asked questions about home improvement and contractors and I answer them for you right here on youtube, and today I’m going to talk about something you’ve probably heard about in commercials, and probably seen in some fine print, but never knew what it was or how it worked and that’s FDIC insurance.
FDIC stands for Federal Deposit Insurance Corporation and they insure deposit bank accounts for up to 0,000. Even though they are sponsored by the government the FDIC is actually an independent corporation that works with the government to make sure that the money that people have in their bank accounts will be safe in case something happens to the bank.
Pretty much every type of bank account is FDIC insured. Checking, Savings, high interest savings, and even your CDs. Plus the FDIC insures each bank account individually so if you have both a checking and a savings they are both insured for the 250,000.
The things that aren’t insured by the FDIC can be described as putting your money somewhere other than a physical account. This would be things like stocks, bonds, and mutual funds because you’re putting your money in the market, and safety deposit boxes because you’re just putting your money in a box and not an account.
Your money is insured against a massive computer failure at the bank or if there is an economic tanking and there is a sudden run on money. It is not insured from a robbery or any other type of theft.
If you have any further questions about the FDIC and what they do, be sure to ask me here on youtube or on facebook. Like us while you’re at it too. For Safepact.com this has been Tyler….build safe out there.