February 24, 2020

consumer news

FEDERAL DEPOSIT INSURANCE CORPORATION

How Does the FDIC

Protect Consumers? 

The Federal Deposit Insurance Corporation 

(FDIC) is known for protecting depositors, 

but we do more to connect with and protect 

the public. The FDIC was created in 1933 in 

response to the thousands of bank failures 

during the Great Depression of the late 1920s 

and early 1930s. Since the start of FDIC 

insurance in 1934, no depositor has lost a 

single cent of insured funds. 

What bank products does FDIC Deposit 

Insurance cover?

FDIC deposit insurance enables 

consumers to confidently place their 

money at FDIC-insured institutions 

across the country. The FDIC is funded 

by FDIC-insured institutions, not 

taxpayers, and FDIC deposit insurance 

is backed by the full faith and credit 

of the United States Government. 

FDIC deposit insurance coverage 

depends on the type of banking 

products you have.

PHOTO: GETTY IMAGES

Depositors do not need to apply for FDIC 

insurance. Coverage is automatic whenever 

a deposit account is opened at an FDICinsured institution. Ask your bank if your 

account type is insured. Also, check out 

FDIC’s BankFind at https://research2.fdic.

gov/bankfind/ for a list of FDIC-insured 

institutions to ensure you are selecting an 

FDIC-insured institution. Keep in mind that 

an FDIC-insured institution must display 

an official FDIC sign at each teller window. 

Visit https://www.fdic.gov/deposit/ to learn 

more about FDIC deposit insurance. 

Insure deposits, 

supervise institutions, 

address concerns, 

provide resources

FDIC deposit insurance covers:

Checking accounts

Negotiable Order of Withdrawal 

(NOW) accounts

Savings accounts

Money Market Deposit Accounts 

(MMDAs)

Certificates of Deposit (CDs)

Cashier’s checks, money orders, and 

other official items issued by a bank

FDIC deposit insurance 

does not cover:

Stock investments

Bond investments

Mutual funds

Life insurance policies

Annuities

Municipal securities

Safe deposit boxes or their contents

U.S. Treasury bills, bonds or notes
For help in calculating the insurance 

coverage on your deposits at a particular 

institution, the FDIC offers the Electronic 

Deposit Insurance Estimator 

http://edie.fdic.gov/.

How does the FDIC protect insured 

deposits?

Unfortunately, banks sometimes fail, 

but bank failures occasionally occur in a 

functioning marketplace. When they do, 

the FDIC is working for you. Banks fail for 

a variety of reasons. When this happens, the 

bank’s chartering authority steps in to close 

the bank and bring in FDIC as the deposit 

insurer. FDIC staff is on location the day 

it fails, working to identify those who have 

insured money in the bank. If possible, 

another bank agrees to buy the failing bank 

and the transition is generally fairly smooth 

for depositors and borrowers. If there is no 

immediate buyer, the FDIC maintains access 

to depositors’ insured funds. For more 

information, go to https://www.fdic.gov/

consumers/banking/facts/.

What does FDIC do to ensure banks 

protect my deposits?

The FDIC directly examines and 

supervises nearly 3,500 financial 

institutions. Our examiners check 

for operational safety and soundness 

of more than half of the institutions 

in the U.S. banking system. The FDIC 

also examines some institutions for 

compliance with consumer protection 

laws and regulations. The other 

banking regulators supervise the 

institutions to the extent that the 

FDIC does not. 

You may hear about other federal 

banking regulatory agencies. Banks 

have options on which agency will 

monitor their performance. This can 

For more help or information, go to www.fdic.gov or 

call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). 

Please send your story ideas or comments to Consumer Affairs 

at consumeraffairsmailbox@fdic.gov

be confusing. There are five financial 

regulatory agencies and each serves a 

different purpose. 

Along with the FDIC, they are:

• The Federal Reserve System

(https://www.federalreserve.gov/)

• The Office of the Comptroller of 

the Currency (https://occ.gov/) 

• The Consumer Financial 

Protection Bureau 

(https://www.consumerfinance.gov/)

• The National Credit Union 

Administration 

(https://www.ncua.gov)

These agencies work together to ensure 

the safety and soundness of America’s 

banks and to protect the public. 

How can FDIC protect me if I have a 

banking related problem to resolve? 

If you have a question or need banking 

related assistance, you can contact the 

FDIC at 1-877-ASKFDIC (1-877-275-

3342) or visit FDIC.gov. The FDIC’s 

Consumer Response Center is responsible 

for investigating all types of consumer 

complaints about FDIC-supervised 

institutions and responding to consumer 

inquiries about consumer laws and 

regulations. If you have a dispute related 

to your bank, attempt to resolve your 

concern with the bank first. If you need 

assistance in facilitating a resolution with 

your bank, an FDIC Consumer Affairs 

Specialist is available to help with your 

banking related concerns.

What FDIC resources are available in 

my community?

The FDIC provides resources to educate 

and protect consumers, while working to 

revitalize communities. These resources 

provide practical guidance on how to 

become a better user of financial services, 

make informed financial decisions, and 

protect against financial scams and fraud.

• FDIC Consumer Resources 

(https://www.fdic.gov/consumers/

assistance/resources.html) has a 

collection of FDIC links to assist 

the public.

• FDIC Consumer News 

(https://www.fdic.gov/consumers/

consumer/news/index.html) is a 

monthly newsletter that focuses on 

issues of importance to consumers. 

• The FDIC’s Money Smart financial 

education program 

(https://www.fdic.gov/consumers/

consumer/moneysmart/) can help 

people of all ages enhance their 

financial skills and create positive 

banking relationships.

• The Community Affairs Program 

(https://www.fdic.gov/consumers/

community/program.html) works in 

local communities throughout the 

United States to encourage financial 

institutions to invest and meet the 

credit needs of the communities, while 

promoting programs that protect and 

inform consumers.