The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks and thrift institutions. Currently the FDIC insures all deposits in banks, including retirement savings accounts such as Individual Retirement Accounts (IRA). The FDIC covers for losses caused by the failure of the financial institution which holds the accounts assets up to $100,000. The Deficit Reduction Act recently signed into law by the President increased FDIC coverage from $100,000 to $250,000.
Read Section 2103(c) of the Deficit Reduction Act of 2005 Public Law 109-171 [PDF]< Back