FDIC

FDIC

Federal organization that insures deposits in accounts at banks and savings and loan associations. Member institutions fund the FDIC. In order for an institution to afford coverage in the event that it closes, it must be an FDIC member.

What is covered:

The first $100,000 of deposits that are payable in the U.S. The insurance limit is $100,000 per depositor per insured institution.

Checking, savings, money market and retirement accounts and certificates of deposit.

Principal and accrued interest up to coverage limit.

Ways to have more than $100,000 on deposit at one bank and still be protected:

The most common types of accounts for individuals and families are single accounts, self-directed retirement accounts, joint accounts and revocable trust accounts. Self-directed retirement accounts, which include traditional IRAs, Roth IRAs and self-directed Keoghs are insured separately. The deposit amounts are added together and insured up to $250,000.

What is not covered:

Stocks, bonds, mutual funds, life insurance policies, annuities or municipal bonds, even if purchased at an FDIC-insured institution.

U.S. Treasury bills, bonds or notes.

Valuables in safe deposit boxes. These items may be covered by an institution’s private insurance or by the owner’s homeowners insurance.

For more information about the FDIC, visit www.fdic.gov or call (877) ASK-FDIC.

NCUSIF

A branch of the National Credit Union Administration that insures member share accounts at federally insured credit unions. Member credit unions fund the NCUA, which manages the NCUSIF.

As of April 2006, most share accounts are insured up to the Standard Maximum Share Insurance Amount, which is $100,000. This coverage amount may be increased in the future.

The coverage limit on certain retirement accounts, including IRAs and Keoghs, is $250,000.

For more information about the NCUA and to access the Share Insurance Estimator, visit www.ncua.gov.

Sources: FDIC and NCUSIF