Federal Deposit Insurance Corporation - Items Not Insured

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.