Glossary
FDIC insurance
FDIC insurance protects deposits at insured banks up to $250,000 per depositor, per bank, for each ownership category, if the bank fails; credit unions have the same cover from the NCUA.
It covers checking, savings, money market deposit accounts and CDs, not stocks, bonds, mutual funds, annuities or crypto. Using several ownership categories (single, joint, retirement, trust accounts) raises the total insured at one bank.
Work it out
Related terms
- CD (certificate of deposit)A bank deposit that earns a fixed APY for a set term, from a few months to five years or more, in exchange for a penalty if you withdraw early.
- Money market accountAn insured bank or credit union savings account that often pays a higher rate than basic savings and may come with checks or a debit card.
- High-yield savings accountAn insured savings account that pays well above the national average APY, usually at online banks, while keeping your money available to withdraw.
Sources: FDIC: Deposit insurance