𝗔𝗿𝗲 𝗬𝗼𝘂𝗿 𝗖𝗵𝗲𝗰𝗸𝗶𝗻𝗴 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗕𝗮𝗹𝗮𝗻𝗰𝗲𝘀 𝗥𝗲𝗮𝗹𝗹𝘆 𝗜𝗻𝘀𝘂𝗿𝗲𝗱?

Most people assume their money is “safe” in the bank. But safe from what? And who is actually protecting it?

If you’re in your teens or early twenties, here's the key: Your accounts are insured — but only against specific kinds of loss. And your own mistakes are not on that list.

𝗙𝗗𝗜𝗖 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲: 𝗪𝗵𝗮𝘁 𝗜𝘁 𝗖𝗼𝘃𝗲𝗿𝘀

Money in a checking or savings account is protected by the FDIC — the Federal Deposit Insurance Corporation, only if your bank fails. If the bank collapses, the FDIC replaces your money up to $250,000 per depositor, per bank.

𝗕𝘂𝘁 𝗙𝗗𝗜𝗖 𝗱𝗼𝗲𝘀 𝗡𝗢𝗧 𝗽𝗿𝗼𝘁𝗲𝗰𝘁 𝘆𝗼𝘂 𝗳𝗿𝗼𝗺:

• Scams or fraud you fall for

• Sending money to the wrong person

• Overdrafts or fees

• Identity theft

• Any mistake you make with your own account

𝙁𝘿𝙄𝘾 𝙥𝙧𝙤𝙩𝙚𝙘𝙩𝙨 𝙮𝙤𝙪 𝙛𝙧𝙤𝙢 𝙗𝙖𝙣𝙠 𝙛𝙖𝙞𝙡𝙪𝙧𝙚, 𝙣𝙤𝙩 𝙗𝙖𝙙 𝙙𝙚𝙘𝙞𝙨𝙞𝙤𝙣𝙨.

𝗡𝗼𝘁 𝗘𝘃𝗲𝗿𝘆 𝗕𝗮𝗻𝗸 𝗼𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝗨𝗻𝗶𝗼𝗻 𝗜𝘀 𝗜𝗻𝘀𝘂𝗿𝗲𝗱

Always look for the FDIC (Banks) or NCUA (Credit Unions) logo.

If you don’t see one your deposits may not be insured at all.

𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗪𝗼𝗿𝗸 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗹𝘆 (𝗦𝗜𝗣𝗖)

Brokerages like Robinhood, Fidelity, Schwab, Vanguard are covered by the 𝗦𝗜𝗣𝗖, not FDIC. SIPC stands for “Securities Investor Protection Corporation.” SIPC covers up to $500,000, including $250,000 in cash if the brokerage fails.

𝗕𝘂𝘁 𝗦𝗜𝗣𝗖 𝗱𝗼𝗲𝘀 𝗡𝗢𝗧 𝗽𝗿𝗼𝘁𝗲𝗰𝘁 𝘆𝗼𝘂 𝗳𝗿𝗼𝗺:

• Market losses

• Buying the wrong stock

• Some Specific holdings (Crypto or Futures) are NOT covered

• Bad investment choices

• Normal ups and downs of the market

𝙎𝙄𝙋𝘾 𝙥𝙧𝙤𝙩𝙚𝙘𝙩𝙨 𝙮𝙤𝙪 𝙛𝙧𝙤𝙢 𝙗𝙧𝙤𝙠𝙚𝙧𝙖𝙜𝙚 𝙗𝙖𝙣𝙠 𝙛𝙖𝙞𝙡𝙪𝙧𝙚, 𝙣𝙤𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩 𝙧𝙞𝙨𝙠.

And again — not every brokerage is SIPC insured. Always look for the SIPC logo before you open an account.

𝗧𝗵𝗲 𝗕𝗶𝗴 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆

Your money is protected — but only from the things you can’t control, and protection has a dollar limit. Be sure to read the fine print in your bank, credit union, brokerage, or credit card agreements.

𝗬𝗼𝘂 𝗮𝗿𝗲 𝗮𝗹𝘄𝗮𝘆𝘀 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝗲 𝗳𝗼𝗿:

• Avoiding scams

• Protecting your passwords

• Watching your accounts

• Spending wisely

• Understanding the rules

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Financial safety isn’t automatic. It’s a skill — and the earlier you learn how these protections work, the safer your money will be.

𝗔𝗜 𝗽𝗿𝗼𝗺𝗽𝘁𝘀 𝘁𝗼 𝗲𝘅𝗽𝗹𝗼𝗿𝗲 𝘁𝗵𝗶𝘀 𝘀𝘂𝗯𝗷𝗲𝗰𝘁 𝗳𝘂𝗿𝘁𝗵𝗲𝗿:

1: How did the FDIC and SIPC come about?

2: How many US bank failures have there been since the Great Depression?

3: What are the FDIC and SIPC dollar limits and terms on protection?