Consumer Guides

Government  Guides

Consumer News

Consumer Guides
Index

Consumer Guides
Home



Submit Government Guide

Submit Article

Copywriting Services 
 
Adoption
Adoption Record Access
Single Parent Adoption
Alternative Energy
Autos - Cars
Automobiles - Buying
Auto Finance
Auto Insurance
Auto Leasing
Auto Auctions
Auto Hybrids (HEV)
Rental Cars
Biology - Human Genome Project
 
Business- Franchises
Business Investment Capital
 
 
Consumer News Articles
Cosmetic Surgery and Financing
CD Manufacturing Services
Clean Energy Systems
Costopedia
Forklift Batteries
LASIK Procedures and Costs
Organic Baby Furniture
 
Disaster Help
Guide to help Rebuild Your Home
Earthquakes -Preparation, Survival
 
Drugs
Drug and Alcohol Rehabs
 
Employment and Interviewing
 
Education
 
Fishing Guide
Financial
Currency & Coins
Currency: Buying, Selling and Redeeming
FDIC Insurance
Forex Brokerages Directory
Merchant Accounts
Merchant Account Comparisons
Credit Card Guide
Payment Processing Options
Stock Market Basics
Auctions
 
 
Government Grant Info
Government Links - Federal, State, Local
Global Warming Facts
 
Homeland Security
Preparing America
U.S. Immigration and Visas   
 
Health
Hospital Comparison
Health Insurance
What is Influenza? (Flu)
Life Insurance
Long Term Care
Healthcare Debate
 
Jewelry
 
Marriage
Marriage and Health
Marriage and Teen Attitudes
Happy vs. Unhappy
Marriage and Health
Recipe for Happy Marriage
Sleep and Marriage Study
 
Patents, Trademarks, Copyrights
 
News
Legal News
World News
 
Private Jets
Business Aircraft
Cessna
Eclipse 500
Lear
 
Real Estate
Mortgage Modification
100 Q & A's of Home Buying
Fair Housing Quiz (HUD)
Financing Energy Efficient Homes
Home Buying
Home Buying FAQ
Home Buying Glossary
Home Buying Loans
Home Mortgage Insurance
Manufactured Homes
Mortgage Refinance
Selling Your Home
Ten Tips For Home Buyers
Energy Efficient Homes
 
Tax Tips
Tax Hike - Expiring Bush Tax Cuts
 
Technology
Data Centers
Correct Time
Digital Photography
 
Travel
Traveling by Train Tips
Tips For Women Traveling Alone
State Department Travel Tips
 
Other Online Guides
e-Commerce
Shopping


________
Disclaimer

Contact

 

 
How to Tell the Difference

First, remember that FDIC insurance protects only deposits. Products such as mutual funds, annuities, stocks, bonds and U.S. Treasury securities are not deposits and therefore are not protected by the FDIC. Mutual funds, stocks and bonds are subject to investment risks, including the possible loss of principal, even if you bought them from your FDIC-insured institution. Treasury securities and Savings Bonds, while not insured by the FDIC, are backed by the full faith and credit of the U.S. government.

Two products that are easy to confuse because they have similar names are Money Market Deposit Accounts and money market mutual funds (often called money market funds). MMDAs, as we described previously and as the name indicates, are deposits and, as a result, are covered by FDIC insurance. Money market mutual funds, on the other hand, are funds that invest primarily in short-term corporate bonds or government securities and are not deposit accounts insured by the FDIC.

To minimize potential confusion about which products are FDIC-insured, banks and savings institutions are required by
$100,000 FDIC Insurance—What's Included
federal banking regulators to clearly differentiate insured deposits from investments, both in their sales practices and their advertisements. For example, to the extent possible, investment sales should not take place in a bank's teller area. Institutions also must ensure that sales personnel are properly qualified and trained, and that they recommend investments that are suitable for each customer. In addition, when offering or advertising an investment product to a customer, FDIC-insured institutions must indicate that the investment:

     

  • Is not FDIC-insured;

     

     

  • Is not guaranteed by the bank or savings institution; and

     

     

  • Is subject to investment risk, including the possible loss of principal.

     

Before an investment sale is completed, a customer also must sign a statement saying that he or she understands that a particular investment carries risks and is not backed by the FDIC. "Investments often are an important part of a person's overall financial plan," says Amy Aulthouse Mitchell, a securities specialist with the FDIC in Washington. "We simply want customers to understand, before committing to an investment, that they would be moving beyond the protection of a deposit and into a product that may lose value."

Mitchell also notes that the bank regulatory agencies recently adopted similar consumer protections governing insurance sales. The new rules, which will become effective on October 1, 2001, require banking institutions to notify customers that insurance products and annuities are not FDIC-insured and, where appropriate, are subject to investment risk.

The rules also prohibit institutions from "tying" loan decisions to insurance sales. For example, a bank can't condition its approval of your auto loan on whether you buy car insurance from that bank or one of its affiliates. "In essence, the consumer is free to purchase the insurance from any source, and the bank must explain that to the consumer," says Keith Ligon, a supervision policy chief for the FDIC in Washington.

 

____________________________________________

Table of Contents
 

Increased Need For Knowledgeable Consumers

What is Insured?

 

 

Questions to Ask Before Buying an Investment

What's Not Insured?

How to Tell the Difference

$100,000 FDIC Insurance: What's Included

Final Thoughts - Conclusion

For More Help or Information

Banks: One-Stop Shopping for Financial Services -

Source: Federal Deposit and Insurance Corporation (FDIC)

 

 

Hot Link:
Crossbridge
a unique find...
www.mycrossbridge.org  

 

 

 

© 2001-2012 Consumer-Guides.Info ~ Contact