One of the key steps of financial freedom is financial literacy, or understanding key elements of what it means to invest and how you can help ensure the safety of your hard-earned money. So, it is very important to know that your savings accounts at Pibank are FDIC-insured, because Pibank is a brand of Intercredit Bank, N.A., a full-service financial institution, operating as a National Association under the supervision of the Office of the Comptroller of the Currency (OCC) and insured by the Federal Deposit Insurance Corporation (FDIC).
What is FDIC Insurance?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that was created in 1933 in response to the Great Depression to restore and maintain public confidence in the banking system. FDIC insurance covers all types of deposits received at insured banks, including savings accounts, checking accounts, money market deposit accounts, and certificates of deposit (CDs), up to the specified limit.
Protection for Savers
Knowing that your savings are insured through the FDIC provides a crucial layer of protection against potential loss. In the unlikely event of a bank failure, FDIC insurance ensures that your deposits, up to the insured limit, are fully reimbursed, safeguarding your investment and providing peace of mind..
There are several key aspects to FDIC Insurance:
Coverage Limits
FDIC insurance typically covers up to $250,000 per depositor, per insured bank, for each account ownership category. This means that even if your bank were to fail, your deposits within the insured limit would be fully protected.
Bank Stability
FDIC insurance has benchmarks for a bank’s stability and reliability. Insured banks undergo rigorous regulatory scrutiny to ensure they meet stringent financial standards, providing added assurance to depositors.
Peace of Mind
Understanding the protection you are afforded by FDIC insurance allows you to confidently deposit funds, knowing that your savings are safe and secure at an ensured financial institution.
Conclusion
FDIC insurance is a major cornerstone of financial security for savers across the United States. By insuring deposits in banks and savings associations, the FDIC provides an essential safety net, increasing confidence in the banking system and creating a culture of responsible saving and investment. For individuals embarking on their financial journey, understanding the importance of FDIC insurance is crucial.