FDIC Insured Account

An account that meets the requirements to be covered or insured by the Federal Deposit Insurance Corporation (FDIC). An FDIC Insured Account has to be in a bank that is a participant of the FDIC program. The different accounts that can be FDIC insured are NOW, checking, savings, Certificate of Deposits (CD) and money market deposit accounts. Accounts that do not qualify as FDIC insured accounts are safe deposit boxes, investment accounts (stocks, bonds, etc.) mutual funds, life insurance policies, etc.






If a depositor wants an FDIC insured account, it is important to make sure that the desired bank is a participant of the FDIC program. Banks that are participants of the FDIC, are required to display an official sign at each teller window or station where deposits are regularly received. The maximum dollar amount that is insured in a qualified account is $250,000 per bank. In other words, it is possible for a depositor to deposit $1 million in four different banks and each account will be fully insured.






Investment dictionary. . 2012.

Look at other dictionaries:

  • insured account — A bank or financial account that is insured for the benefit of the depositor, protecting against loss in the event that the savings institution becomes insolvent. Bloomberg Financial Dictionary See: FDIC. Bloomberg Financial Dictionary …   Financial and business terms

  • Certificate of Deposit Account Registry Service — The Certificate of Deposit Account Registry Service (CDARS), is a private, patented, for profit service that breaks up large deposits (from individuals, companies, nonprofits, public funds, etc.) and places them across a network of more than 3000 …   Wikipedia

  • Federal Deposit Insurance Corporation - FDIC — The U.S. corporation insuring deposits in the U.S. against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices. The FDIC will… …   Investment dictionary

  • Merchant account — A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit… …   Wikipedia

  • Money Market Account Extra - MMAX — An account structure that provides depositors with the ability to secure FDIC insurance on large deposits that would otherwise exceed the normal insurance limit of $250,000. The MMAX structure allows banks to attract large depositors, including… …   Investment dictionary

  • Public Unit Account — An account that holds funds provided by the United States government and its agencies. Public unit accounts include deposit accounts of the United States, including federal agencies; any state, county, municipality or a political subdivision… …   Investment dictionary

  • Money market deposit account — A money market account is a deposit account with a relatively high rate of interest, and short notice (or no notice) required for withdrawals. In the United States, it is a style of instant access deposit subject to federal savings account… …   Wikipedia

  • Federal Deposit Insurance Corporation — FDIC …   Wikipedia

  • Certificate of deposit — This article is specific to the United States. For a more general article, see Time deposit. Banking in the United States Monetary policy The Federal Reserve System Regulation Lending Credit card Deposit accounts Savings account Checking account …   Wikipedia

  • Banking in the United States — has occurred under a series of laws passed by the federal and state governments.HistoryEarly history 1700s and 1800sIn 1781, an act of United States Congress established the Bank of North America in Philadelphia. During the American Revolutionary …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.