How Safe is FDIC Insurance?

Thanks to one of my partners, Global Financial Private Capital (GPFC) for this piece. Here’s an excerpt:

…but the Federal Deposit Insurance Corp. (FDIC) pays Depositors when a Bank Fails, RIGHT?

The definitive answer to this question is both Yes and No:
 Yes, the FDIC insures all deposits held within member banks and thrifts, currently up to
$250,000. As this insurance is backed by the “full faith and credit of the United States
Government”, the FDIC should be able to cover all future failures.
 No, the FDIC is required by law to maintain a Deposit Insurance Fund (DIF) of at least 1.15% of total insured deposits. Currently, DIF is approximately $20 billion in the red, a negative ratio of 0.39% of insured deposits.

To read the entire article click: http://tinyurl.com/2vzamcb

Happy selling, stay focused.

Matt
http://twitter.com/advadvisor
866.363.9595 ::: matt.neuman@advisorsexcel.com

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