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The Federal Deposit Insurance Corporation (FDIC)
is a U.S. Government agency that was created by an
act of Congress known as the Glass-Steagall Act of
1933.
Created in 1933 as a way to convince people that
it was safe to keep their money in banks after the
failure of so many during th early years of the
Great Depression, the FDIC insures each depositor's account up to
the maximum permitted by law which is currently
$100,000 for checking accounts, NOW accounts,
regular savings accounts, money market accounts,
and certificates of deposits. A special provision
of the law allows retirement accounts to be
insured for up to $250,000.
The FDIC does not insure stocks and bond accounts,
mutual funds, money market funds (different than
money market accounts), annuity accounts or the
contents of safe deposit boxes.
The FDIC administers their program through two
funds. The Bank Insurance Fund (BIF) covers
deposits made at regular banks, and the Savings
Association Insurance Fund (SAIF) covers deposits
made at Savings and Loan institutions.
The FDIC is managed by an appointed Board of
Directors and Senior Executives. The Chairman of
The FDIC Board is appointed for a 5 year period. |
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