When it comes to where you put your money, the number one thing you care about is its safety. You want to keep your money secure and insured. That’s why the words “Member FDIC” are so important. This indicates that your bank is covered by the federal government. If anything happens, up to $250,00 per depositor, per account ownership category, will be reimbursed if you bank with an FDIC member.
At Valley, we’re proud to be members of the FDIC and want to share some information about what that means for you.
What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) was established in 1933 during the height of the Great Depression. It was designed to protect customers’ bank investments. Since its creation, not one customer has lost insured funds at a qualified institution, and neither will you. If anything should happen to your bank, the FDIC will cover any losses. This includes bank robbery, financial insolvency, and even natural disaster.
What is covered?
The FDIC is specifically designed to cover deposit accounts so that customers can be assured their hard-earned money is safe. This includes money held in traditional checking or savings accounts, Certificates of Deposit (CDs) and Money Market Accounts (MMAs). The coverage applies to both deposits and interest. It does not, however, cover investments, so be aware that savings bonds, stock, annuities, mutual funds, municipal securities and safety deposit box contents are not covered.
The general coverage amount for an individual is $250,000 for each account ownership category per institution. This is enough to cover most people’s daily account balances with room to spare. But what happens if you need to cover a large bulk deposit? In this case you may want to apply specific strategies to increase your coverage amount. Your bank representative can help you come up with a plan to make sure your money is allocated securely.
Is my bank covered?
Over 5,000 financial institutions are covered by the FDIC and it’s a good bet that yours is too. It’s always a good idea to review your bank accounts and this should be one item on your list to check. FDIC Members will indicate their affiliation on the bank window and on the bottom of their website. If you want to look it up yourself, the FDIC has a database you can search on their website. Check out the FDIC Bankfind Page and plug in your bank’s name to the search bar to find out if they are a member.