Does the FDIC treat Business accounts the same way as individual accounts?

Question

Does the FDIC treat Business accounts the same way as individual accounts? (in that they are insured for 100,000)

Answer 1

FDIC insured items

FDIC insurance covers "deposit accounts":

Demand deposit accounts (aka "checking accounts"), Negotiable Order of Withdrawal accounts, i.e., NOW accounts (checking accounts that earn interest), and money market deposit accounts, also called MMDAs (savings accounts that allow a limited number of checks to be written each month.)

Savings accounts that can be added to or withdrawn from at any time.

"Money market" accounts, essentially high-interest savings accounts (the name is similar to "money market funds" which are not insured).

Certificates of deposit (CDs), which generally require funds be kept in the account for a set period.

Outstanding Cashier's Checks, Interest Checks, and other negotiable instruments drawn on the accounts of the bank.

Accounts at different banks are insured separately. All branches of a bank are considered to form a single bank. Also, an Internet bank that is part of a brick and mortar bank is not considered to be a separate bank, even if the name differs. FDIC publishes a guide entitled Your Insured Deposits setting forth the general contours of FDIC deposit insurance, and addressing common questions asked by bank customers about deposit insurance.

[edit] Non-FDIC insured items

Only the above types of accounts are insured. Some types of uninsured products, even if purchased through a covered financial institution, are:

Stocks, bonds, mutual funds, and money market funds. The Securities Investor Protection Corporation, a separate institution chartered by Congress, provides protection against the loss of many types of such securities in the event of a brokerage failure.

Investments backed by the U.S. government, such as US Treasury securities

The contents of safe deposit boxes. Even though the word deposit appears in the name, under federal law a safe deposit box is not a deposit account - it's a well-secured storage space rented by an institution to a customer.

Losses due to theft or fraud at the institution. These situations are often covered by special insurance policies that banking institutions buy from private insurance companies.

Accounting errors. In these situations, there may be remedies for consumers under state contract law, the Uniform Commercial Code, and some federal regulations, depending on the type of transaction.

Insurance and annuity products, such as life, auto and homeowner's insurance.