Insured Deposits

What this video covers

• The defining traits of demand deposits: available on demand, minimal or no interest, and full Federal Deposit Insurance Corporation backing
• What a certificate of deposit (CD) is: a time deposit with a fixed maturity, fixed interest rate, and early withdrawal penalty (not a loss of insurance)
• The negotiable versus non-negotiable CD distinction: minimum $100,000 face value for negotiable jumbo CDs, secondary market availability, and identical Federal Deposit Insurance Corporation coverage for both types
• Why transferability differs between negotiable and non-negotiable CDs, but safety does not
• The Federal Deposit Insurance Corporation coverage formula: $250,000 per depositor, per insured bank, per ownership category (not per account)
• How individual, joint, retirement, and trust accounts create separate buckets of Federal Deposit Insurance Corporation coverage at the same bank
• What the Federal Deposit Insurance Corporation explicitly does NOT cover: stocks, bonds, mutual funds, annuities, life insurance, and money market funds, even when purchased through a bank branch