You Can Bank On It.
Saturday, July 18th, 2009
Most U.S. citizens walk into, get online to, or drive up to their bank several times every week and hand over their hard earned dollars. Why do they do it? How many other strangers would they trust to hold their savings, and return the money and additional funds back to them at any point in time? What makes banks safe, and how do we know they’re?
Well, the first indication that you’re money’s in a safe place is the placard that greets you at the door – Federal Deposit Insurance Corporation. This federal U.S. agency, the Federal Deposit Insurance Corporation, typically protects up to $hundred thousand of your deposited funds from loss. Established in the 1930’s, the Federal Deposit Insurance Corporation became a way to curtail the runs on banks that occurred directly after the Great Depression. By 1934, with the initiation and support of the FDIC legislation bank runs had been reduced by nearly 4000.
In addition to Federal Deposit Insurance Corporation protection, banks also invite supplemental banking insurance from private carriers. This insurance is set up to protect investors’ funds from vandalism and bank robberies. (more…)
