Are all investments obtained through a bank insured?

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Today’s banks typically offer a diverse group of products, not all of which are insured by the Federal Deposit Insurance Corporation (FDIC). Bank customers should resist the tendency to assume that all investments obtained through a bank are insured.

FDIC insurance covers the most familiar types of bank accounts–checking, savings, trust (except for trust accounts with assets consisting of securities rather than deposits), retirement, and certificates of deposit. Money market deposit accounts are also protected.

Of the investment products that are not insured by the FDIC, the most popular is mutual funds. A mutual fund is not a “deposit,” even if purchased from a bank, and therefore is not insured by the federal government. In the same category of investments not insured by the FDIC are stocks, bonds, annuities, and treasury securities. The contents of a safe deposit box also are not insured.

In short, property and investments are not necessarily insured by the FDIC just because a customer got them from a bank or keeps them at a bank.