.With two recent bank failures in less than 72 hours, understanding the protections offered by FDIC coverage is important. We often think of our cash as "safe" money, right? It can be very safe, if you follow the guidelines set forth by the FDIC, which, by the way, is backed by the full faith and credit of the U.S. Government.
The first step is to determine whether your banking institution is covered by the FDIC. Believe it or not, some banks are not. Credit unions are not covered by FDIC insurance. They have their own insurance fund called the NCUA, National Credit Union Administration.
The second step is to review the titling of your deposit accounts. This brochure published by the FDIC is a good guide on how to title assets for maximum insurance coverage. In addition, your banker should be able to help you with this.
Should you exceed the coverage amount at an FDIC institution, accounts can be opened at another FDIC covered bank. Note: it does not mean going to the next town to open accounts at another branch of the same institution. It means selecting another bank entirely.
Please note the types of assets that are not covered by FDIC insurance including
If you have questions, please contact Jenifer at Jenifer@mosaicfi.com