ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The standard insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories.

Detailed explanation-2: -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.

Detailed explanation-3: -Where Does The Safety Net End? Since all scheduled banks are covered under DICGC, whether it’s a private, public sector or a co-operative bank, all banks are equally safe for amounts of up to Rs. 5 lakh. This includes both the principal as well the interest held with the bank.

Detailed explanation-4: -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.