February 24, 2020

FEDERAL DEPOSIT INSURANCE CORPORATION consumer news

FDIC deposit insurance covers:

Checking accounts

Negotiable Order of Withdrawal (NOW) accounts Savings accounts

Money Market Deposit Accounts (MMDAs) Certificates of Deposit (CDs)

PHOTO: GETTY IMAGES Cashier’s checks, money orders, and other official items issued by a bank

How Does the FDIC FDIC deposit insurance does not cover: Protect Consumers? Stock investments

The Federal Deposit Insurance Corporation Bond investments (FDIC) is known for protecting depositors, Mutual funds Insure deposits, but we do more to connect with and protect the public. The FDIC was created in 1933 in Life insurance policies supervise institutions, response to the thousands of bank failures during the Great Depression of the late 1920s Annuities and early 1930s. Since the start of FDIC Municipal securities address concerns, insurance in 1934, no depositor has lost a provide resources single cent of insured funds. Safe deposit boxes or their contents What bank products does FDIC Deposit U.S. Treasury bills, bonds or notes Insurance cover?

FDIC deposit insurance enables Depositors do not need to apply for FDIC consumers to confidently place their insurance. Coverage is automatic whenever money at FDIC-insured institutions a deposit account is opened at an FDIC- across the country. The FDIC is funded insured institution. Ask your bank if your by FDIC-insured institutions, not account type is insured. Also, check out taxpayers, and FDIC deposit insurance FDIC’s BankFind at https://research2.fdic. is backed by the full faith and credit gov/bankfind/ for a list of FDIC-insured of the United States Government. institutions to ensure you are selecting an FDIC-insured institution. Keep in mind that FDIC deposit insurance coverage an FDIC-insured institution must display depends on the type of banking an official FDIC sign at each teller window. products you have. Visit https://www.fdic.gov/deposit/ to learn more about FDIC deposit insurance. For help in calculating the insurance be confusing. There are five financial What FDIC resources are available in coverage on your deposits at a particular regulatory agencies and each serves a my community? institution, the FDIC offers the Electronic different purpose. Deposit Insurance Estimator The FDIC provides resources to educate http://edie.fdic.gov/. Along with the FDIC, they are: and protect consumers, while working to • The Federal Reserve System revitalize communities. These resources How does the FDIC protect insured (https://www.federalreserve.gov/) provide practical guidance on how to become a better user of financial services, deposits? • The Office of the Comptroller of make informed financial decisions, and the Currency (https://occ.gov/) Unfortunately, banks sometimes fail, protect against financial scams and fraud. but bank failures occasionally occur in a • The Consumer Financial functioning marketplace. When they do, Protection Bureau • FDIC Consumer Resources the FDIC is working for you. Banks fail for (https://www.consumerfinance.gov/) (https://www.fdic.gov/consumers/ assistance/resources.html) has a a variety of reasons. When this happens, the • The National Credit Union collection of FDIC links to assist bank’s chartering authority steps in to close Administration the public. the bank and bring in FDIC as the deposit (https://www.ncua.gov) insurer. FDIC staff is on location the day • FDIC Consumer News it fails, working to identify those who have These agencies work together to ensure (https://www.fdic.gov/consumers/ insured money in the bank. If possible, the safety and soundness of America’s consumer/news/index.html) is a another bank agrees to buy the failing bank banks and to protect the public. monthly newsletter that focuses on and the transition is generally fairly smooth issues of importance to consumers. How can FDIC protect me if I have a for depositors and borrowers. If there is no • The FDIC’s Money Smart financial banking related problem to resolve? immediate buyer, the FDIC maintains access education program to depositors’ insured funds. For more If you have a question or need banking (https://www.fdic.gov/consumers/ information, go to https://www.fdic.gov/ related assistance, you can contact the consumer/moneysmart/) can help consumers/banking/facts/. FDIC at 1-877-ASKFDIC (1-877-275- people of all ages enhance their 3342) or visit FDIC.gov. The FDIC’s financial skills and create positive What does FDIC do to ensure banks Consumer Response Center is responsible banking relationships. protect my deposits? for investigating all types of consumer • The Community Affairs Program The FDIC directly examines and complaints about FDIC-supervised (https://www.fdic.gov/consumers/ supervises nearly 3,500 financial institutions and responding to consumer community/program.html) works in institutions. Our examiners check inquiries about consumer laws and local communities throughout the for operational safety and soundness regulations. If you have a dispute related United States to encourage financial of more than half of the institutions to your bank, attempt to resolve your institutions to invest and meet the in the U.S. banking system. The FDIC concern with the bank first. If you need credit needs of the communities, while also examines some institutions for assistance in facilitating a resolution with promoting programs that protect and compliance with consumer protection your bank, an FDIC Consumer Affairs inform consumers. laws and regulations. The other Specialist is available to help with your banking regulators supervise the banking related concerns. institutions to the extent that the FDIC does not. You may hear about other federal banking regulatory agencies. Banks For more help or information, go to www.fdic.gov or have options on which agency will call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). monitor their performance. This can Please send your story ideas or comments to Consumer Affairs at [email protected]