Someone came in to save them? I don't care I still do not feel safe keeping my money in there or invest in the bank itself.
The FDIC insures banks up to $250k per bank. per covered account type.
This saves all common folks (who’d typically have less than $250k, or can easily spread money around in multiple banks), which was the intent of the FDIC guarantees (basic guarantee of the financial system, basic guarantee for the population) but doesn’t fully help a Ford or a GM or a Kelloggs, who might need 10000x that amount in funds in order to ensure daily, normal operations.
For most people, there’s just no reason to worry about where their money is deposited. However, investment money (ie a non-FDIC-backed instrument) still has risk, as if a bank or investment firm fails, those items wouldn’t necessarily be protected.
The funds to do all of this protection comes from FDIC insurance fees that the US Government charges banks. It can withstand multiple bank failures without requiring funds from US taxpayers. With a large enough failure, of course, then the taxpayers would need to pony up.
In order to support the American financial system, and to ensure trust in the banks, obviously this is very worthwhile.
Again let it be said: there’s no cause for alarm, even if your bank “fails”, because for FDIC insured deposits, your money is absolutely safe. The run on the banks that other countries see shouldn’t be a problem here, unless you have >$250k in one account. Then there’s risk.
The grandstanding I see on TV leads me to believe no one is even aware of what the FDIC does.
Here you go! I was partially correct initially. It's per-account-type. If you have 5 savings accounts at one bank, they're all covered to a total max of $250k, but if you have a savings and a checking account those are two covered account types, so you're covered to 2x250k, or $500k.
FDIC insurance is an independent agency of the U.S. government that offers deposit insurance for account holders at its member banks in the event of a bank failure. Read more here.
www.chase.com
FDIC insurance automatically covers deposits up to $250,000 per depositor, per institution, for each account ownership category. These categories include checking accounts, savings accounts,
money market accounts and certificates of deposit (CDs). These account categories can be held by themselves or within other account types.
Only these account categories, which hold specific types of assets, are insured. For example, should a 401(k)’s allocation be 50% in stocks and 50% in a money market account, only the portion in the money market account would be insured. Additionally, individuals with more than one account at one member institution are insured for each of the individual eligible account categories they hold. So, if a customer has a savings account, a checking account and a money market account at one bank, they are each individually insured up to $250,000.