FDIC Insurance on Certain Retirement Accounts

Consumers often think of money as a median of exchange and insurance as a protection for something deemed to be of value, in two different perspectives.

As consumers, we have insurance coverage for our money when we deposit it in a financial institution that has the letters FDIC displayed. The letters FDIC stand for Federal Deposit Insurance Corporation. FDIC is an affiliate of the United States government.

During the Great Depression, thousands of banks failed, and businesses and families across America lost money they had deposited in those banks. The Great Depression gave rise to the FDIC. Congress created the FDIC to make sure when a bank fails that all of its customers get their deposits back, including earned interest up to the insurance limits under the federal law. FDIC boasts that no depositors have lost a single cent of insured money falling within compliance of the federal law.