Items Not Insured
Only the above types of accounts are insured. Some types of uninsured products, even if purchased through a covered financial institution, are:
- Stocks, bonds, mutual funds, and money funds
- The Securities Investor Protection Corporation, a separate institution chartered by Congress, provides protection against the loss of many types of such securities in the event of a brokerage failure, but not against losses on the investments.
- Further, as of September 19, 2008, the US Treasury is offering an optional insurance program for money market funds, which guarantees the value of the assets.
- Exceptions have occurred, such as the FDIC bailout of bondholders of Continental Illinois.
- Investments backed by the U.S. government, such as US Treasury securities
- The contents of safe deposit boxes.
- Even though the word deposit appears in the name, under federal law a safe deposit box is not a deposit account – it is merely a secured storage space rented by an institution to a customer.
- Losses due to theft or fraud at the institution.
- These situations are often covered by special insurance policies that banking institutions buy from private insurance companies.
- Accounting errors.
- In these situations, there may be remedies for consumers under state contract law, the Uniform Commercial Code, and some federal regulations, depending on the type of transaction.
- Insurance and annuity products, such as life, auto and homeowner's insurance.
Read more about this topic: Federal Deposit Insurance Corporation
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