QuestionAugust 17, 2025

What is the benefit of making sure your account is FDIC/NCUA insured? square

What is the benefit of making sure your account is FDIC/NCUA insured? square
What is the benefit of making sure your account is FDIC/NCUA insured?
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Solution
3.8(154 votes)

Answer

The benefit is protection of deposits up to 250,000 per depositor, ensuring security against institutional failure. Explanation 1. Understand FDIC/NCUA Insurance FDIC (Federal Deposit Insurance Corporation) and NCUA (National Credit Union Administration) provide insurance to protect depositors' funds in banks and credit unions, respectively. 2. Identify Coverage Benefits They insure deposits up to 250,000 per depositor, per insured bank or credit union, for each account ownership category. 3. Assess Security Assurance This insurance ensures that even if the financial institution fails, depositors will not lose their insured funds.

Explanation

1. Understand FDIC/NCUA Insurance<br /> FDIC (Federal Deposit Insurance Corporation) and NCUA (National Credit Union Administration) provide insurance to protect depositors' funds in banks and credit unions, respectively.<br /><br />2. Identify Coverage Benefits<br /> They insure deposits up to $250,000 per depositor, per insured bank or credit union, for each account ownership category.<br /><br />3. Assess Security Assurance<br /> This insurance ensures that even if the financial institution fails, depositors will not lose their insured funds.
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