Banking for beginners basic terms is the focus for this blog. The objective is to give you more information about banks, specifically on how you go about choosing a bank.
The primary purpose of all banks is to make sure the bank you choose is a safe place for you to keep your money. However, not all banks are protected in the same way. So the first thing you should do is to make sure that your bank has an official Federal Deposit Insurance Corp. (FDIC) logo. If it is a credit union, it should have a National Credit Union Administration (NCUA) logo.
The FDIC and NCUA insure each account that you have with the bank for up to $250,000 should the bank fail. The majority of banks in the United States are FDIC and NCUA, and they cover most types of accounts a bank has to offer. However, if the bank offers investments in mutual funds, stock, bonds, Treasury Bills, money market mutual funds, it’s important to understand that these funds are not usually insured by FDIC or NCUA.
Play the money-o game on banking for addition information on this subject.