Business Math, Ch. 13
Learn about the FDIC and the NCUA!
Class, interestingly, I have been a customer at a bank that failed. Yes, I drove to my bank one day to cash a check and there was a sign that said, “CLOSED – THIS BANK HAS BEEN SEIZED BY THE FEDERAL GOVERNMENT. REGULAR OPERATIONS WILL RESUME TOMORROW.” I remember having a mental picture of people who hide money in their mattresses and thinking, “Why oh why is this happening to me?”
Luckily, the bank was insured by the FDIC and operations did resume the following day, but it taught me a very big lesson! Always find out if your deposits are insured. Now, you might not know the “ins” and “outs” of the FDIC and you might not yet be aware that credit unions have a similar type of insuring body called the NCUA.
Here are some helpful links from our government that explain the details of the type of insurance and its limits. Also, be aware that there are limits to the amount that is insured.