What is FDIC insurance?

FDIC insurance is a type of insurance offered by the Federal Deposit Insurance Corporation (FDIC) to protect deposits in certain banks in the state of Texas. This insurance covers up to $250,000 per depositor per bank, if the bank fails. This means if the bank fails, customers of that bank would be able to get up to $250,000 back as compensation. FDIC insurance is available to customers of both state and federally chartered banks in Texas, although the coverage is slightly different for each. An important element of FDIC insurance is that it is not just limited to bank accounts; it also applies to other deposit products, such as savings accounts, certificates of deposit (CDs), money market accounts, and certain checking accounts. In addition, some types of joint accounts, trust accounts, and beneficiary accounts are also eligible for FDIC insurance. Furthermore, customers of any Texas bank that is FDIC-insured can receive deposit insurance on funds held outside of Texas. FDIC insurance is important because it helps protect consumers from losing money in the event of a bank failure. This protection helps maintain consumer confidence in the banking system, and it allows individuals to have peace of mind when making deposits in FDIC-insured banks.

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