When we put money in the bank and they said it's insured by FDIC, do we actually get all our money back?
Answers:
WARNING! VERY BAD, VERY WRONG ANSWERS ABOVE!
The 100k is NOT per account, it's per DEPOSITOR at the same bank. (There's some exceptions; joint accounts and individual accounts are treated separately, for example.)
From the FDIC's website, linked below:
"The basic insurance amount is $100,000 per depositor per insured bank."
What this means is:
If I have $100K in a savings account, $100K in a CD, and $100K in a money market (I wish), but they're all at First Bank and Grill, I'm only insured to $100K; if the First goes under, I lose $200K.
But if I have $100K at First Bank and Grill, $100K at Infidelity Mistrust, and $100K at ChickenPluckers Federal, I'm covered for the full $300K.
Credit unions have their own organization, with basically the same insurance coverage and the same rules.
generally insurance only kicks in if the bank closes or becomes bankrupt...insurance issued would be per bank account not per customer i would think.
The FDIC will insure up to $100,000 on every account. Be it bank fraud, bank robbery, embezzlement, etc.
Yes, it's insured against theft, for up to $100,000. They won't pay more than that, otherwise, they wouldn't say "up to $100,000".
That is correct. So if you have three or more accounts with the bank, be sure they all total 100k or less. Anytime the amount goes over 100k either spend it or put it into another bank. I've read a book recently, by Ric Edelman, that the FDIC is smoke and mirrors, to certain degree. Check his web site out, see below.
This question should probably be in the finance section.
If we hop the way-back machine to the 1980's and the S&L bailout (thanks Congress for spending taxpayer money), then all depositers in FDIC accounts were made whole reguardless of the size of deposits. I'd think the OCC (the federal governing body of banks) would rather put their finger in a pencil sharpener than let someone's deposits go unpaid due to a bank failure. Doing a google search, I couldn't find a bank that has gone into receivership since 1993. Most of the time when a bank start to go south, the OCC steps in and requests (think of the OCC as the kid who owns the baseball)the bank to find a buyer. If no such buyer is found then FDIC insured accounts will be transfered to a more stable bank.
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