Investments: Characteristics Of

The FDIC (Federal Deposit Insurance Corporation) is an arm of the federal government. It insures money in bank accounts up to a limit. The FDIC does not insure investments in stocks, bonds, life insurance policies or other investments, even if you purchased them from an insured bank.

Basic FDIC insurance is $250,000 per depositor per insured bank.  If you have funds in more than one insured bank, you can have up to $250,000 insured in each. (So, if you have $250,000 in Bank A, $250,000 in Bank B and $10,000 in Bank C, your full $510,000 is insured by the FDIC).

You can increase the amount insured at each bank by adding multiple names. For example, one account in your name, one account in your and a spouse's name, and one account solely in the spouse's name.

If you have more money to put into a CD and want it insured, a bank which participates in the Certificate of Deposit Account Registry Service (CDARS) spreads your money into different banks. You deal with one bank, but your money is in multiple banks. To see if your bank is part of the service, see www.cdars.com Tel.: 866.776.6426

If you want to check to be sure that a bank does have FDIC insurance, go to www.fdic.gov   or call 877.275.3342, press "0" for "information specialist"

To see if your accounts are under the coverage limits, check the Federal Deposit Insurance Corporation's interactive tool at www.MyFDICInsurance.gov . For assistance, call 877.275.3342.

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