How FDIC Deposit Insurance Works

The FDIC helps maintain stability and public confidence in the U.S. financial system. The FDIC does this is by insuring deposits to at least $250,000 per depositor, per ownership category at First Bank and each FDIC-insured bank. The FDIC maintains the Deposit Insurance Fund (DIF), which:

• Insures deposits and protects depositors of FDIC-insured banks and
• Helps fund our resolution activities when banks fail.

The DIF is backed by the full faith and credit of the United States government, and it has two sources of funds:

• Assessments (insurance premiums) that FDIC-insured institutions pay and
• Interest earned on funds invested in U.S. government obligations. The FDIC buys Treasury notes, and the interest on those notes helps the DIF grow.

FDIC deposit insurance only covers deposits, and only if your bank is FDIC-insured.

What Does Deposit Insurance Cover?

FDIC deposit insurance protects money you hold at First Bank and all other FDIC-insured banks in traditional deposit accounts. Coverage is automatic when you open one of these types of accounts at an FDIC-insured bank:

• Checking accounts,
• Savings accounts,
• Money market deposit accounts (MMDAs), and
• Certificates of deposit (CDs).

What Financial Products are Not Covered?

The FDIC only insures your money if it is in a deposit account at an FDIC-insured bank such as First Bank. Banks offer some financial products and services that are not deposits, and the FDIC does not insure them. These include:

• Mutual funds
• Annuities
• Life insurance policies
• Stocks and bonds
• Crypto assets
• Municipal securities
• Safe deposit contents

To learn more about FDIC deposit insurance and other financial resources, visit the FDIC’s Consumer Resource Center.