FDIC Insured Account

Posted in Finance, Accounting and Economics Terms, Total Reads: 325

Definition: FDIC Insured Account

FDIC is the Federal Deposit Insurance Corporation which insures deposits in The United States against bank failure. In 1933 this corporation was made to encourage stability in the financial system and maintain public confidence through the support of sound banking practices.


A FDIC insured account is the one that meets the criteria to be insured or covered by FDIC. This account has to be within a bank that is a participant of the FDIC program. FDIC insurance can cover all deposit accounts, as follows:

• Checking accounts

• Saving accounts

• Certificate of deposits

• Money market deposit accounts


Some of the accounts do not qualify as FDIC insured accounts. These accounts that do not follow FDIC criteria for insured accounts are:

• Safe deposit boxes

• Mutual funds

• Life insurance policies

• Investment accounts(stock, bonds)


As of August 2014, it was decided by FDIC that it will insure a deposit of a member bank up to a limit of $250,000 per institution.



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