What does FDIC Insurance Cover?
FDIC insurance covers all types of deposits received at an insured bank, including deposits in checking, NOW, and savings accounts, money market deposit accounts, and time deposits such as certificates of deposit (CD)s.
FDIC deposit insurance covers the balance of each depositor’s account, dollar-for-dollar, up to the insurance limit of $250,000; including principal and any accrued interest through the date of the insured bank’s closing.
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investments were bought from an insured bank.
The FDIC does not insure U.S. Treasury bills, bonds, or notes. These are backed by the full faith and credit of the United States government.