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FDIC Insurance Basics
FDIC's Deposit Insurance Program
The FDIC insures deposits in most banks and savings associations in the United States. For simplicity, the terms "bank" and "insured bank" are used throughout the Employee's Guide to mean any bank or savings association that is insured by the FDIC.
The FDIC protects the depositors of insured banks against the loss of their deposits due to a bank failure (up to the insurance limit). The FDIC does not cover bank losses due to fire, theft, or fraud. However, such losses may be covered by a bank's hazard and casualty insurance and fidelity bonds.
FDIC-insured banks must display an official sign at each teller window or teller station. There are separate official signs for banks and for savings associations. The bank sign and savings association sign are shown below:
 
Basic
Insurance Amount
The basic amount of insurance coverage provided to depositors of an insured bank is $100,000. FDIC insurance covers the balance of each depositor's account, dollar-for-dollar, including principal and any accrued interest through the date of the bank's closing, up to the insurance limit. The $100,000 limit applies to all depositors of an insured bank except for owners of "self-directed" retirement accounts, which are insured up to $250,000 per owner, per insured bank.
Types of Deposit Accounts that FDIC Insures
FDIC insurance covers all types of deposits received by a bank in its usual course of business, including:
- Checking accounts
- Demand deposit accounts (DDAs)
- Negotiable order of withdrawal (NOW) accounts
- Money market deposit accounts (MMDAs)
- Passbook and statement savings accounts
- Time deposits, including certificates of deposit (CDs)
- Official items such as:
- Money orders
- Interest checks
- Travelers checks |
- Expense checks
- Official checks/cashier's checks
- Loan disbursement checks |
Types of Bank Products that FDIC Does not Insure
Many banks offer their customers a range of products that are not deposits and therefore are not covered by FDIC insurance. Examples of nondeposit products that are not insured by the FDIC include:
- Investments in mutual funds, including money market mutual funds and mutual funds that invest in stocks, bonds, and other securities
- United States Treasury securities (Note: United States Treasury securities are backed by the full faith and credit of the United States government.)
- Annuities, which are contracts underwritten by insurance companies guaranteeing income in exchange for a lump sum or periodic payment
- Stocks, bonds or other securities
- Insurance products, such as automobile and life insurance
- Safe deposit boxes (Note : The contents of safe deposit boxes may be covered by the bank's hazard insurance and/or the boxholder's homeowners or renters insurance.)
Interagency Policy Statement on Retail Sales of Nondeposit Investment Products
The four federal banking regulatory agencies — FDIC, Office of the Comptroller of the Currency, Office of Thrift Supervision, and the Board of Governors of the Federal Reserve System — have issued an Interagency Statement on Retail Sales of Nondeposit Investment Products. This policy statement requires all insured banks to:
- Fully inform their customers about investment risks
- Differentiate investment products from insured deposits
- Distinguish the investment product sales area from the retail deposit-taking area
- Employ properly licensed and trained sales representatives
- Develop effective program management, particularly when investments are sold through third parties
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