Your Account Balance Is Protected
At Exchange Bank, your peace of mind is our priority, and we understand that safeguarding your hard-earned money is a top concern. That's why we want to ensure you have a clear understanding of the Federal Deposit Insurance Corporation (FDIC) insurance and how it protects your deposits with us.
What Is the FDIC?
The FDIC, or Federal Deposit Insurance Corporation, is an independent agency of the United States government established in 1933 in response to the Great Depression. Its primary mission is to protect depositors' funds and maintain stability in the banking system. The FDIC does this by providing deposit insurance, which guarantees the safety of your deposits, up to certain limits.
How Does FDIC Insurance Work?
When you open an account at Exchange Bank, whether it's a savings account, checking account, certificate of deposit (CD), or a money market account, your deposits are automatically insured by the FDIC, up to the current coverage limit per depositor, per ownership category.
The standard FDIC insurance coverage limit is $250,000 per depositor, per ownership category. This means that each depositor's funds are separately insured in different ownership categories, including single accounts, joint accounts, revocable trust accounts, and more.
What Is Covered by FDIC Insurance?
FDIC insurance covers a wide range of deposit products at our bank, including:
- Savings Accounts: Your savings account balance is insured up to the coverage limit.
- Checking Accounts: Money in your checking account is also insured.
- CDs (Certificates of Deposit): The principal and interest accrued on your CDs are insured.
- Money Market Accounts: Funds in your money market account are protected up to the applicable coverage limit.
- IRAs: Individual Retirement Accounts (IRAs) are covered separately, ensuring your retirement savings are protected.
What Is NOT Covered by FDIC Insurance?
It's essential to be aware that not all financial products or investments are covered by FDIC insurance. Some examples of assets that are not insured by the FDIC include:
- Stocks, Bonds, and Mutual Funds: Investments in the stock market or mutual funds are not covered.
- Safe Deposit Boxes: The contents of your safe deposit box are not insured.
- Annuities: Annuity contracts are typically not covered.
Contents of Small Business Accounts: While certain business accounts may be covered, large deposits held by a business may exceed FDIC insurance limits.
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