You work hard for your money, so entrusting it to another institution can seem frightening. What happens if there is another depression, will you lose all your money? What about fraud, potential identity theft? These are valid concerns, but thankfully there are laws and policies in place today that protect you and your hard-earned money.
Requirements by Law
After the Great Depression, the United States made drastic changes to the way that the banking system functions. In order for an institution to be considered a reputable, government-approved banking facility, it must follow specific laws according to the Federal Deposit Insurance Corporation (FDIC):
Institutions must have some kind of bankers environmental risk insurance. This kind of insurance covers banks in case of errors or mistakes on their end.
The FDIC requires that all bank accounts have a maximum insurance coverage policy of $250,000.
You are protected from identity theft liability in most states. Check with your state’s attorney general’s office to see how fraudulent activity is handled.
Do research on your local financial institution and put your mind at ease. In uncertain times, it can be scary to know who to trust and where to store your money. Knowing the regulations that banks must comply with can help you to feel less anxious.