FDIC covers deposit accounts, dollar for dollar, including principal and any accrued interest, up to the insurance limit. FDIC is funded by premiums paid by financial institutions and in 2007 had $51 billion covering $3 trillion of insured deposits. Historically, insured funds are available to depositors within days after the closing of an insured bank. Since the start of the FDIC in 1934, no depositor has ever lost a penny of insured deposits.
The FDIC web site is www.fdic.gov
How Safe Is Your Money?
There are thousands of FDIC insured financial institutions out there. In 70 years no depositor has ever lost a penny of insured deposits. In our opinion the credit risk of an FDIC insured account is for all practical purposes the same as that of a direct U.S. government obligation.
Although some banks fail 99% of them do not.
If one is over the insurance limit, there are ways to change ownership to increase FDIC account coverage. An FDIC insured bank account is a safe money place. If you have uninsured deposits the risk of losing them due to a bank failure are very slim. A few banks fail every year, but 99% of them do not. However, if you have uninsured deposits it would probably be a good idea to find out what the private rating agencies are saying about your bank.