How safe is the E*Trade FDIC insured money markey saving account?

Question

E*Trade is offering a 3.30% APY on their FDIC insured money market account. How safe are such accounts? What happens to the money if E*Trade as a bank fails? How much protection FDIC insurance really provides? Thanks

Answer 1

Insured by the Fed Gov't up to $100,000

Answer 2

It is covered up to $100,000 by the Federal Deposit Insurance Corporation.  Don't get it confused with a money market mutual fund which tries to maintain a stable value but cannot guarantee it.