What is FDIC Insured?
FDIC insured refers to the state or condition that you are already entitled to the different rights and privileges of the insurance provider. FDIC refers to the Federal Deposit Insurance Corporation. This organization is responsible for preserving and promoting the public confidence especially in the financial system of the United States government. This is through insuring the deposits of people in banks as well as thrift institutions. The deposit should at least be $250,000.
The organization works through identifying, tracking and addressing some of the risks to important entities such as the deposit insurance funds. Through this, it also helps in limiting the effect of instability in the economy and financial system in general. FDIC is actually an independent federal government agency created in 1933. This organization came into the scene in response to the innumerable cases and instances of bank failures which occurred in 1920s to 1930s.
To be FDIC insured means you do not risk in losing a single cent of your money deposited in the banks. That’s because the funds you have are insured and no matter how unstable the financial system may be, your money stays safe and in good hands. It also means that you are a protected depositor no matter if the bank or thrift institution you entrust your funds with declares failure or bankruptcy. How?
There are several ways known to resolve the problem and in order to protect the FDIC insured depositor. The most common resolution is through selling the loans and deposits of the failed or bankrupt institution to other organizations with much more stable status. In cases when this happens, the depositors automatically become the customer of the institution that would assume responsibility. The insured is always in the winning end of getting a FDIC because of the six core values of the organization integrity being on top of it.