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 disasters.
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.
How much is 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?
More than 5,000 financial institutions are covered by the FDIC and it’s a good bet that yours is too. But don’t leave it to chance! Take a moment to review your bank accounts and confirm that your bank is FDIC-insured.
FDIC Members will indicate their affiliation on the bank window and on the bottom of their website. Want to be absolutely sure? Visit the FDIC BankFind page, enter your bank’s name, and quickly verify their membership. Take control of your financial security and see if your financial institution is FDIC-insured today!
