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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Is a bank’s insolvency all that the Federal Deposit Insurance Corporation insures for and only up to $100,000?

Is a bank’s insolvency all that the Federal Deposit Insurance Corporation insures for and only up to $100,000?

Do banks cover situations like fraud or identity theft?

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5 Responses to "Is a bank’s insolvency all that the Federal Deposit Insurance Corporation insures for and only up to $100,000?"

  1. SoccerRefToo says:
    Van

    It is deposit insurance only up to $250,000.

    All other issues are either outside insured, or internally covered.

    Soccerref

  2. Mutt says:
    The FDIC does not cover fraud or identify theft. If these crimes are committed against the bank itself, then the bank usually has other insurance through private companies to cover that. If it is against a account owner, the account owner is responsible for any insurance coverage (if any).
  3. WRG says:
    The FDIC doesn’t protect against fraud (unless it was by the bank itself) or ID theft.
  4. ustoev says:
    FDIC-insured products
    FDIC deposit insurance covers deposit accounts, which, by the FDIC definition, include:

    demand deposit accounts (checking accounts), and negotiable order of withdrawal accounts (NOW accounts, i.e., savings accounts that have check-writing privileges)
    savings deposit accounts (savings accounts), and money market deposit accounts (MMDAs, i.e., higher-interest savings accounts subject to check-writing restrictions)
    time deposit accounts including certificates of deposit (CDs)
    outstanding cashier’s checks, interest checks, and other negotiable instruments drawn on the accounts of the bank.
    accounts denominated in foreign currencies [36]
    Accounts at different banks are insured separately. All branches of a bank are considered to form a single bank. Also, an Internet bank that is part of a brick and mortar bank is not considered to be a separate bank, even if the name differs. Non-US citizens are also covered by FDIC insurance.[36]

    The FDIC publishes a guide entitled Your Insured Deposits, which sets forth the general characteristics of FDIC deposit insurance, and addresses common questions asked by bank customers about deposit insurance.[37]

    [edit] Items not insured by FDIC
    Only the above types of accounts are insured. Some types of uninsured products, even if purchased through a covered financial institution, are:[37]

    Stocks, bonds, mutual funds, and money funds
    The Securities Investor Protection Corporation, a separate institution chartered by Congress, provides protection against the loss of many types of such securities in the event of a brokerage failure, but not against losses on the investments.
    Further, as of September 19, 2008, the US Treasury is offering an optional insurance program for money market funds, which guarantees the value of the assets.[38]
    Investments backed by the U.S. government, such as US Treasury securities
    The contents of safe deposit boxes.
    Even though the word deposit appears in the name, under federal law a safe deposit box is not a deposit account – it is merely a secured storage space rented by an institution to a customer.
    Losses due to theft or fraud at the institution.
    These situations are often covered by special insurance policies that banking institutions buy from private insurance companies.
    Accounting errors.
    In these situations, there may be remedies for consumers under state contract law, the Uniform Commercial Code, and some federal regulations, depending on the type of transaction.
    Insurance and annuity products, such as life, auto and homeowner’s insurance.

    The only thing that is covered is failure of the bank. If that is caused by fraud in total, then it would be covered but not if the loss is individual and caused by fraud, ind entity theft or even bad investments

  5. sirbobby98121 says:
    FDIC: Federal Deposit Insurance Corporation. They insure each depositor’s account up to $250,000.

    The bank as an institution has other protective measures in place for fraud.

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