We’ve all seen the little signs at the bank proclaiming that they are FDIC Insured but do you really know what that means?
Jonathon over at My Money Blog has an excellent post on the subject.
What Does the FDIC Insure?
The Federal Deposit Insurance Corporation (FDIC) is a government corporation that insures all deposits at insured banks, including checking and savings accounts, money market deposit accounts, and certificates of deposit (CDs), up to the insurance limit. Use this form to find out if your bank is insured.
The main points he makes are very sound. It is still possible for a bank to fail. If this happens, you will lose any money not FDIC insured (this mostly applies to anything in excess of $100,000- the insurance limit). The good news is that your access to your funds should not be limited for more than a few days. But go and read the whole piece here.