Fraud Alert: The FDIC Still Protects Depositors

Fraud Alert: The FDIC Still Protects Depositors

By: Stacey Nickens

Recently, rumors have been spreading that savings accounts and CDs are “subject to seizure” should a bank fail. These rumors claim that depositors are now treated as unsecured creditors of the bank due to a new law. However, the Federal Deposit Insurance Corporation (FDIC) has already come forward to say that these claims are false. They attribute the rumors to a precious metal trading company called Monetary Gold, who has been spreading these false claims as part of their marketing materials.

Your savings accounts and CDs are still protected as long as they are held in a federally insured U.S. bank. Up to $250,000 is protected for each depositor, and you can always move money in excess to another bank for it to be protected. Most U.S. banks are federally insured, and you can confirm this is the case at your bank by talking to a bank representative. You can also look for the FDIC sign at the bank, call the FDIC at 877-275-3342, or use the FDIC’s website.

By Categories: BlogPublished On: August 19th, 2020