What is the FDIC
FDIC stands for the Federal Deposit Insurance Corporation. It is a entity of the Federal government that insures deposits made at banking institutions across the United States. They currently insure deposits up to $250,000 (through December 31st 2013). They work to identify potential risks to the nation’s financial institutions and work to minimize the effects of a failing banking institution on a community. They manage receiverships when an institution fails and work to ensure public confidence in the nation’s banking and financial systems.
Why the FDIC is Important
The FDIC exists to help you, the investor, feel confident in investing in the economy and contributing to the fiscal health of your community and nation. Essentially, the FDIC exists to cover your back in the event that an institution holding your accounts goes bankrupt. The FDIC will currently cover your losses up to $250,000 and acts as the receiver for your funds until you can transfer your funds to another institution.
Some people are afraid to invest their hard earned money for fear that the institution holding their cash will experience an upset or be affected by the economy. As we have recently seen in the economic recession that began in 2008, having the assurance and guarantee that potential losses will be covered can create greater peace of mind for you, the investor.
What FDIC means for You
All of the banks featured on BankTruth.org are FDIC insured, so you can search for the best rates in money market accounts, CDs, and savings and know that your funds will be protected to the fullest amount they can be. BankTruth exists to help you be able to research and invest your money with confidence and the assurance that you are receiving the best rates available for whatever your investing needs may be.