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    An account on federal deposit insurance

    By cooldude | December 8, 2012

    federal deposit insuranceFederal Deposit Insurance Corporation (FDIC) is an independent organization created by the government to maintain public confidence in the country’s financial system. This organization was created in 1933 after going thru bank failures during 1920s and 1930s. They take care by insuring the deposits in all member banks and supervising financial institutions for safety, consumer protection.

    Latest fund limit of FDIC, the institution will insure the deposits up to $250,000 of its member banks. Federal Deposit Insurance will not cover shares and mutual funds. The FDIC is a national organization, while there are other Federal Deposit Insurance organization in state level. One of which is called UW credit Union which comes under the NCUA. This is a state funded, and federally insured institution. Like FDIC the UW credit union funds are also equally supported by the funds from government. NCUA has its own set of member banks and insurance funds.

    This Federal Deposit Insurance will safeguard the deposits of common people who have deposited in a bank. If a bank fails then these funds will safeguard it.

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