How many fdic banks are there in the us

Why do banks need insurance? The number of banks is shrinking, but the value of deposits in these banks is growing, amounting to trillions of U. In good times, this is no issue. Account holders were then eligible for compensation for the portion of their accounts that the FDIC insured. It amounted to over billion U.

The value of funds borrowed by the U. FDIC-insured banks reached billion U. Loading statistic Show source. Download for free You need to log in to download this statistic Register for free Already a member? Log in. Show detailed source information? Register for free Already a member? More information. Supplementary notes. Other statistics on the topic. Financial Institutions Leading commercial banks in the U. Financial Services Value of credit of all commercial banks in the U. Profit from additional features with an Employee Account.

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Develop and improve products. List of Partners vendors. When you open a bank account, you expect the money you deposit to be safe. However, these accounts don't work as a personal vault, which means your money doesn't just sit around waiting for you to make a withdrawal when you need access to it. Banks usually keep a certain amount of cash on hand but the majority is loaned out to others.

When banks can't keep up with the demand for withdrawals, they may have to turn people away. When more want their money and can't get it, they end up losing confidence, resulting in panic.

This, in turn, can trigger a domino effect, leading to a failure in the banking system, which the United States experienced during the Great Depression. So, if you have money in an FDIC-insured bank account and the bank fails, the agency reimburses you for any losses you incur. Many banks use the fact that they're insured as a selling feature even though it isn't a mandate. In other words, an uninsured bank cannot compete effectively in an industry where consumers expect their money to be protected.

The FDIC does not insure all accounts. For a list of the types of accounts and how they are covered, see the chart below. The FDIC doesn't cover all types of accounts. Financial instruments , such as stocks, bonds, money market funds, U.

Treasury securities T-bills , safe deposit boxes, annuities, and insurance products are not insured by the FDIC. Treasury securities, safe deposit boxes, annuities, and insurance products. The FDIC does not insure regular shares and share draft accounts of credit unions. In general, nearly all banks carry FDIC insurance for their depositors. However, there are two limitations to that coverage.

The first is that only depository accounts, such as checking, savings, bank money market accounts, and CDs are covered. The way to get around this limitation is to spread your money across more than one bank.

But coverage is not segregated by branches within the same banking institution, so just remember that both banks need to be completely unrelated. Federal Deposit Insurance Corporation. National Credit Union Association. Savings Accounts. Checking Accounts. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

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