Your Money is Safe. Understanding FDIC Insurance with United Fidelity Bank.
Have you ever wondered what keeps your money safe when you put it in a bank? The answer is called FDIC insurance. At United Fidelity Bank, we want to help you understand what FDIC insurance is, what it does, and how it keeps your money safe. This information is important for everyone.
What is FDIC Insurance?
FDIC stands for the Federal Deposit Insurance Corporation. Think of it as a superhero for your money! It’s a special team from the United States government that works to keep your money safe in banks. The FDIC’s main job is to protect your bank deposits. This is in case a bank fails and must close.
The FDIC was created a long time ago, in 1933. Back then, many banks closed, and people lost all their money. The government wanted to stop that from ever happening again. So, they made the FDIC to help people trust the U.S. banking system again. It’s a cool fact that since FDIC insurance started in 1934, no one has lost a single penny of insured money.
When you open a deposit account at a bank that has FDIC insurance like United Fidelity Bank, your money is automatically protected up to $250,000 per account type. Banks pay money into a special fund themselves, which means the protection is provided by the banks. It’s a simple, worry-free part of secure banking.
What Does FDIC Insurance Cover?
FDIC insurance covers the most common kinds of deposit products people use. These are:
- Checking accounts
- Savings accounts
- Money Market Deposit Accounts (MMDAs)
- Certificates of Deposit (CDs)
- Cashier’s checks and money orders
If you have one of these accounts at an FDIC-insured bank, your money is safe!
The FDIC does not cover some other things. These are usually investments that work differently than regular bank deposits. Here are some examples of what FDIC insurance does not protect:
- Stocks
- Bonds
- Mutual funds
- Life insurance policies
- Items stored in safe deposit boxes
- U.S. Treasury bills, bonds, or notes
- Crypto assets
Knowing what is and isn’t covered helps you make good choices about your money.
How Much of Your Money is Protected? (It Might Be More Than You Think!)
The standard FDIC insurance limit is $250,000. This means the FDIC protects up to $250,000 for each person, at each FDIC-insured bank, for each “ownership category.” So, for many people, that means $250,000 is safe in their checking or savings account at United Fidelity Bank.
But you can have more than $250,000 protected at the same bank! This is because the FDIC looks at different “ownership categories.” Each different way you own money gets its own protection. Let’s look at some examples:
- Example 1: Your Money in Different Banks. If you have an account at United Fidelity Bank and at another FDIC-insured bank, your money is safe up to $250,000 at each bank!
- Example 2: Your Own Money and Shared Money. Your own account has its own protection. But if you have a joint account with someone else, that account is protected separately. This is a great way to keep more money safe!
- Example 3: Your Money in Different Kinds of Accounts. You can have more money safe at one bank if you use different types of accounts. For example, your checking account and your savings account are added together for the $250,000 limit. But your special retirement account, like an IRA, gets its own separate $250,000 protection!
This means you can plan how to keep more of your money safe! The FDIC even has a special online tool called the EDIE (Electronic Deposit Insurance Estimator) calculator to help you figure out your exact protection. It’s a great way to check and feel even safer about your money.
Remember, this protection is automatic! You don’t have to pay extra money or fill out forms. It’s just a good thing about banking with an FDIC-insured bank like United Fidelity Bank.
What Happens if a Bank Fails? (Your Money Stays Safe!)
It’s important to know that bank failures are very rare. But even if they do, the system is made to protect your money. If a bank does fail the FDIC works very, very fast. They protect your insured money in two main ways:
- Move Your Money to a Healthy Bank: Most of the time, the FDIC finds another strong bank to take over the accounts. Your money is simply moved to the new bank, and you can usually get to it again very quickly, sometimes the very next day. This process is usually very smooth for you.
- Direct Payment: If another bank can’t take over right away, the FDIC will quickly send you a check for your insured money. This also happens fast, usually within a few days.
Beyond just insuring your money, the FDIC also helps prevent problems. They regularly check on banks like United Fidelity Bank to make sure they are running safely and well. This proactive care adds another layer of safety, showing that the FDIC not only helps when there are issues but also works hard to stop them from happening.
Why Choose United Fidelity Bank?
At United Fidelity Bank, your financial safety and peace of mind are our most important jobs. Being an FDIC-insured bank is a big part of this promise. We follow all the rules and work hard to keep your money safe and sound.
Beyond the strong protection from the FDIC, United Fidelity Bank wants to give you a great banking experience. This includes friendly service, helpful tools, and a team ready to assist you on your financial journey. We are your trusted partner for secure banking.
Ready to feel confident with your money? We invite you to open an account with United Fidelity Bank today! You can learn more about our secure banking solutions by visiting a local banking center or checking out our website for online banking options.
Have More Questions?
If you have more questions about FDIC insurance, you can visit the official FDIC.gov website. The FDIC also has a free phone number you can call: 1-877-ASK-FDIC (1-877-275-3342).
