What is FDIC Insurance?
The FDIC is an independent agency of the United States government that protects depositors' funds in the event of a bank failure. FDIC insurance covers deposit accounts such as checking accounts, savings accounts, and certificates of deposit (CDs). The standard FDIC insurance coverage is $250,000 per depositor, per insured bank, for each account ownership category.
Are High Yield Savings Accounts Covered by FDIC Insurance?
Yes, high yield savings accounts are covered by FDIC insurance. As long as the high yield savings account is held at an FDIC-insured bank, the funds deposited in the account are insured up to the standard coverage limit of $250,000 per depositor, per insured bank, for each ownership category. It's important to note that FDIC insurance coverage is per depositor, not per account. If you have multiple high yield savings accounts at the same bank, the total amount of insurance would still be limited to $250,000.
What Does FDIC Insurance Cover?
FDIC insurance covers the principal and any accrued interest in eligible deposit accounts at FDIC-insured banks. It protects against the loss of funds in case of bank failure, including instances where the bank becomes insolvent or is closed by regulators. FDIC insurance does not cover losses from investments in stocks, bonds, mutual funds, life insurance policies, annuities, or other financial products.
Is FDIC Insurance Reliable?
FDIC insurance is a reliable and well-established program that has been protecting depositors since 1933. The FDIC has a strong track record of successfully preserving and returning insured deposits in the event of a bank failure. It provides peace of mind to individuals and ensures the stability and confidence in the banking system.