What is FDIC Insurance?
The FDIC is an independent agency of the United States government that was created in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Its primary purpose is to help maintain consumer confidence in the U.S. banking system by insuring deposits in banks and thrift institutions. FDIC insurance covers all types of deposits received at an insured bank, including savings accounts, money market deposit accounts, and certificates of deposit (CDs). The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
Why Check FDIC Insurance for Banks with the Best CD Rates?
Checking the FDIC insurance coverage of banks offering the best CD rates is crucial to ensure the safety of your funds. In the event of a bank failure, FDIC insurance protects depositors by guaranteeing the return of their deposits, up to the insured limits. By verifying the FDIC insurance status of a bank, you can have peace of mind knowing that your money is secure and protected.
How to Check FDIC Insurance Coverage for Banks with the Best CD Rates
There are several ways to verify the FDIC insurance coverage of a bank before investing in their CDs. Visit the official FDIC website and use the BankFind tool to look up a specific bank and confirm its insurance status. You can also contact the bank directly and inquire about their FDIC insurance coverage and the insured limits for deposits.