Choose a bank that is FDIC insured. The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency created in 1933 to promote public confidence and stability in the nation’s banking system. The FDIC protects depositors' funds in the unlikely event of the financial failure of their bank or savings institution. FDIC deposit insurance covers the balance of each depositor's account, dollar for dollar, up to the insurance limit, including principal and any accrued interest through the date of the insured bank's closing. The basic insurance amount is $100,000 per depositor ($250,000 through 12/31/09) per insured bank.
If you have more than the basic insurance amount in any bank account, you would do well to establish more than one account. Besides making sure that a bank is FDIC insured, you should investigate the fees charged for services you intend to use and compare them to fees and services offered by other financial institutions. A location near home or work may be another reason for selecting one financial institution over another as long as the bank that you choose is FDIC insured.
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