FDIC INSURANCE

What is FDIC?

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.

What is Deposit Insurance?

FDIC deposit insurance covers you dollar-for-dollar, principal plus any interest accrued or due, through the date of default, up to at least $250,000. For example, if a person had a CD account in her name alone with a principal balance of $125,000 and $2,000 in accrued interest, the full $127,000 would be insured, as long as the principal plus interest did not exceed the $250,000 insurance limit for single ownership accounts. For deposits over $250,000, we use the Intrafi Cash Service® (also known as Insured Cash Sweep or ICS) network for account owners that need multi-million-dollar FDIC protection.

What does the FDIC Deposit Insurance cover?

Traditional types of accounts:

• Checking & Savings Accounts
• Certificate of Deposits (CDs)
• Money Market Deposit Accounts (MMDAs)

Investment products (that are not deposits) – NOT covered by FDIC:

• mutual funds
• annuities
• life insurance policies
• stocks & Bonds