Misconception Number 6: Any Financial Product Sold by a Bank is FDIC Insured

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FDIC Consumer News – Spring 2006 – FDIC Insurance Misconceptions


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FDIC Insurance: Do You Know As Much As You Think You Know?

Misconceptions: A Top 10 List


Misconception Number 6: Any product sold by a bank is insured by the FDIC.

You know the FDIC insures deposits, such as checking accounts and certificates of deposit (CDs). But in recent years banks also have been offering an array of financial products — including stocks, bonds, mutual funds, annuities and other insurance products — either directly or through other companies. These other products are not FDIC-insured — even if they were sold by a bank — and in some cases they could lose value.


To help minimize confusion, federal regulators require FDIC-insured institutions offering or advertising an investment to a customer to disclose that the product is not FDIC-insured, is not guaranteed by the bank or savings institution, and is subject to investment risk, including the possible loss of principal (the money invested).


Spring 2006 | Misconception Number 1 | Misconception Number 2 | Misconception Number 3 |
Misconception Number 4 | Misconception Number 5 | Misconception Number 6 | Misconception Number 7 | Misconception Number 8 | Misconception Number 9 | Misconception Number 10


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 5/09/2006

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