The Highest Paying Savings Accounts In 2019 (7 Banks)
Insured or Not Insured?
A Guide to What Is and Is Not Protected by FDIC Insurance So - you feel your cash is safe and protected when you walk through the door of the bank or saving association, much safer than when you kept it under your mattress.
BUT, are your money deposit accounts all covered by FDIC money deposit accounts just because you walked into money deposit accounts secure-looking building with iron bars and guards?
Not necessarily - it depends on which of the bank's products you decide to use and whether the bank is FDIC insured.
You are probably familiar with the traditional types of bank accounts - checking, savings, and certificates of deposit CDs - that are insured by the FDIC.
Banks also may offer what is called a money market deposit account, which earns interest at a rate set by the bank and usually limits the customer to a certain number of transactions within a stated time period.
For more information on deposit insurance see FDIC brochure "Your Insured Deposits.
Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, life insurance policies, stocks and bonds.
Unlike the traditional checking or savings account, however, these non-deposit investment products are not insured by the FDIC.
Mutual Funds Investors sometimes favor mutual funds over other investments, perhaps because they hold promise of a higher rate of return than say, CDs.
And with a mutual fund, such as a stock fund, your risk - the risk of a company going bankrupt, resulting in the loss read article investors' funds - is more spread out because you own a piece of a lot of companies instead of a portion of a single enterprise.
A mutual fund manager may invest the fund's money in either a variety of industries or several companies in the same industry.
Or your funds may be invested in a money market mutual fund, which may invest in short-term CDs or securities such as Treasury bills and government or corporate bonds.
Do not confuse a money market mutual fund with an FDIC-insured money market deposit account described earlierwhich earns interest in an amount determined by, and paid by, the financial institution where your funds are deposited.
You can - and should - obtain definitive information about any mutual fund before investing in it by reading a prospectus, which is available at the bank or brokerage where you plan to do business.
The key point to remember when you contemplate purchasing mutual funds, stocks, bonds or other investment products, whether at a bank or elsewhere, is: Funds so invested are NOT deposits, and therefore are NOT insured by the FDIC - or any other agency of the federal government.
Securities you own, including mutual funds, that are held for your account by a broker, or a bank's brokerage subsidiary are not insured against loss in value.
The value of your investments what is real money go up or down depending on the demand for them in the market.
For more information contact: Securities Investor Protection Corporation 805 15th Street, NW Room 800 Washington, DC 20005-2215 Telephone: 202-371-8300 E-Mail: Treasury Securities Treasury securities include Treasury bills T-billsnotes and bonds.
T-bills are commonly purchased through a financial institution.
Customers who purchase T-bills at banks that later fail become concerned because they think their money deposit accounts Treasury securities were kept at money deposit accounts failed bank.
In fact, in most cases banks purchase T-bills via book entry, meaning that there is an accounting entry maintained electronically on the records of the Treasury Department; no engraved certificates are issued.
Customers who hold Treasury securities purchased through a bank that later fails can request a document from the acquiring bank or from the FDIC if there is no acquirer showing proof of ownership and redeem the security at the nearest Federal Reserve Bank.
Or, customers can wait for the security to reach its maturity date and receive a check from the acquiring institution, which may automatically become the new custodian of the failed bank's T-bill customer list or from the Money deposit accounts acting as receiver for the failed bank when there is no acquirer.
And even though there is no federal insurance on Treasury securities, they are backed by the full faith and credit see more the United States Government - the strongest guarantee you can get.
Safe Deposit Boxes The contents of a safe deposit box are not insured by the FDIC.
Make sure you read the contract you signed with the bank when you rented the safe deposit box in the event that some type of insurance is provided; some banks may make a very limited payment if the box or contents are damaged or destroyed, depending on the circumstances.
If you are concerned about the safety, or replacement, of items you have put in a safe deposit box, you may wish to consider purchasing fire and theft insurance.
Separate insurance for these perils may be available; consult your insurance agent.
Usually such insurance is part of a homeowner's or tenant's insurance policy for a residence source its contents.
Again, consult your insurance agent for more information.
In the event of a bank failure, in most cases an acquiring institution would take over the failed bank's offices, including locations with safe deposit boxes.
If no acquirer can be found the FDIC would send boxholders instructions for removing the contents of their boxes.
Robberies and Other Thefts Https://separateschooleducation.info/account/what-is-a-fixed-deposit-account-in-a-bank.html funds may be covered by what's called a banker's money deposit accounts bond, which is a multi-purpose insurance policy a bank purchases to protect itself from fire, flood, earthquake, robbery, defalcation, embezzlement and other causes of disappearing funds.
In any event, an occurrence such as a fire or bank robbery may result in a loss to the bank but should not result in a loss to the bank's customers.
If a third party somehow gains access to your account and transacts business that you would not approve of, you must contact the bank and your local law enforcement authorities, who have jurisdiction over this type of wrongdoing.
Eastern Time, Monday through Friday.
For Deaf or Hard of Hearing call 1-800-925-4618.
Calculate your insurance coverage on-line using the FDIC's Electronic Deposit Insurance Estimator at: Request a copy of which provides a detailed discussion on all the ownership categories, or by calling toll free 1-877-275-3342.
Read more about FDIC insurance on-line at: Send your questions by e-mail using the FDIC's on-line Customer Assistance Form at: Mail your question to: FDIC Attn: Deposit Https://separateschooleducation.info/account/a-money-market-account-or.html Outreach 550 17th Street, N.
Washington, DC 20429-9990 This web page is intended to present information in a non-technical way and is not intended to be a legal interpretation of FDIC regulations and policies.
4 Ways to Deposit Money to BPI Account
The minimum opening deposit for a money market account is $2,500. If your balance drops below that amount — say, from withdrawals — there’s a $10 monthly maintenance fee.
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