In our day to day life money is the primary need for all of us; we need money to fulfill the need of food, clothing & shelter. Basically in common “money” means cash- or better to say liquid cash. We naturally keep our money in the safe custody of some financial institutions as a deposite.Those institution or better are called “banks” not only keeps our money safe , but also gives us interest against our deposits. But it’s quite shocking that this scenario has been changed from past few months.
According to the report of “Federal Deposit Insurance Corporation (USA)”, 72 banks have failed over past few months. Consumers are getting worried about those incidents & began to reduce their amount of deposit in their account.
“Federal Deposit Insurance Corporation”- in short FDIC had an announcement that if a consumer is holding an account with a bank, having being insured by FDIC, he will be totally in safe hands. FDIC is insuring the customers for up to $250,000 individually & it’s totally in the control of US government.
The officials of FDIC has also stated that if a consumer is having his account balance more than $250,000, he can distribute his total funds getting additional new accounts within the same bank under different titles. It will also be possible for them to create additional account(s) in the same name with the other banks for the purpose of spreading funds. It is also advised by the officials that consumers should consult with their respective banks about getting insured by FDIC & providing the service of a sweep account which automatically transfers their funds to their another account with different bank.
The discussed main function of FDIC is to protect the funds of common people in case of a bank fails. Whenever it will happen, FDIC will take all charges of the troubled bank & will make an arrangement for the sale of the respective bank to another financial institution. In case of delay of sale, FDIC will remain in charge until takeover by other bank. The main positive thing which consumers are getting is that they can use their funds within a couple of days.
