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9 myths about FDIC insurance debunked

Mediafeed Logo By Stephanie Colestock of Mediafeed | Slide 1 of 15: When I was growing up, my grandmother kept her cash in a coffee can above the fridge. I never knew how much money was in that old blue Maxwell House tin, but I was always worried that one day it would somehow disappear and her hard-earned savings would be lost.It wasn’t until I got older that I realized why my grandmother kept her money in that can. Eight years before she was born, her parents lost all their savings when their bank failed in the wake of the Great Depression.Whether my grandmother realized it, her parents’ financial loss shaped her own trust in financial institutions and their ability to keep her money safe and secure. But although depositors in the ’20s and ’30s had reason to fear (whether they realized it then), Americans today can rest easy and continue to make smart money moves in a volatile market thanks to the Federal Deposit Insurance Corporation.But many of us don’t fully understand what this insurance does and doesn't do for us. So here’s everything you need to know about FDIC insurance. Related: Recession checklist: 7 things you need to survive an economic downturn

What do you know about FDIC insurance?

When I was growing up, my grandmother kept her cash in a coffee can above the fridge. I never knew how much money was in that old blue Maxwell House tin, but I was always worried that one day it would somehow disappear and her hard-earned savings would be lost.

It wasn’t until I got older that I realized why my grandmother kept her money in that can. Eight years before she was born, her parents lost all their savings when their bank failed in the wake of the Great Depression.

Whether my grandmother realized it, her parents’ financial loss shaped her own trust in financial institutions and their ability to keep her money safe and secure. But although depositors in the ’20s and ’30s had reason to fear (whether they realized it then), Americans today can rest easy and continue to make smart money moves in a volatile market thanks to the Federal Deposit Insurance Corporation.

But many of us don’t fully understand what this insurance does and doesn't do for us. So here’s everything you need to know about FDIC insurance.

Related: Recession checklist: 7 things you need to survive an economic downturn

© nicoletaionescu / iStock

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