What types of accounts are covered by FDIC insurance?

The correct answer is that checking accounts, savings accounts, and certificates of deposit (CDs) are covered by FDIC insurance. FDIC insurance protects depositors by covering the balances of these accounts in the event that the bank fails, up to the insurance limit, which is currently $250,000 per depositor per insured bank. This insurance creates a safety net for consumers, encouraging them to save and manage their money through these traditional banking services without the fear of losing their deposits.

Checking accounts and savings accounts are standard deposit accounts that are commonly held by consumers. Certificates of deposit, or CDs, are time deposits that typically offer a higher interest rate in exchange for the funds being held for a fixed period. All of these account types function as deposit accounts rather than investment accounts, which is why they fall under FDIC protection.

Other account types mentioned, such as investments and real estate accounts, do not qualify for FDIC coverage, as they are considered investment products rather than traditional bank deposits. Money market accounts, although often thought to be covered, are actually a type of savings account and may not necessarily be covered if they do not meet the deposit account criteria defined by the FDIC. Thus, the comprehensive nature of the coverage for checking accounts,