ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The FDIC insures deposits (cash and CDs) up to $250, 000 (principal and interest) for each account holder in a federally insured institution. SIPC members include all brokers and dealers registered under the Securities Exchange Act of 1934, and protects members in the event the firm fails.

Detailed explanation-2: -The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails. Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.

Detailed explanation-3: -Bottom line. For the most part, if you keep your money at an institution that’s FDIC-insured, your money is safe-at least up to $250, 000 in accounts at the failing institution. You’re guaranteed that $250, 000, and if the bank is acquired, even amounts over the limit may be smoothly transferred to the new bank.

Detailed explanation-4: -Deposit Insurance If a commercial bank fails, the FDIC guarantees to reimburse depositors up to $250, 000 (raised from $100, 000 during the financial crisis of 2008) per insured bank, for each account ownership category.

Detailed explanation-5: -FDIC deposit insurance does not protect against losses due to theft or fraud, which are addressed by other laws. FDIC insurance does not protect against the default, insolvency, or bankruptcy of any non-bank entity, including crypto custodians, exchanges, brokers, wallet providers, and neobanks.