BANKING AFFAIRS

Detailed explanation-1: -The standard deposit insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank.

Detailed explanation-2: -Each depositor in a bank is insured upto a maximum of ₹ 5, 00, 000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

Detailed explanation-3: -The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.

Detailed explanation-4: -Anything over that amount would exceed the FDIC coverage limits. So if you keep more than $250, 000 in cash at a single bank, then you run the risk of losing some of those funds if your bank fails. The good news is that bank failures are generally rare; there were only four bank failures in 2020.