The Federal Deposit Insurance Corporation (FDIC) recently launched a national campaign to increase the public’s awareness of deposit insurance.
The campaign, called “Know Your Risk. Protect Your Money,” is designed to inform the public about how the FDIC can protect people’s money in the event of a bank’s failure. It is targeted at those individuals who may have lower confidence in the U.S. banking system or who are unbanked. Also, it is designed to reach those who use mobile payment systems, alternative banking services and financial products that may appear to be FDIC-insured but are not.
“Consumers today have a variety of options for where they can put their money. Evidence suggests many people may be confused whether their funds are protected by deposit insurance,” FDIC Chairman Martin Gruenberg said. “In light of concerns raised by the bank failures earlier this year, this is an important moment for the FDIC to reach out to the public and ensure that more consumers understand deposit insurance and how it protects their money.”
After three regional bank failures earlier this year, a Gallup poll found nearly half of Americans surveyed are worried about the safety of their money deposited into banks and other financial institutions. This poll suggests that a significant percentage of those surveyed are unaware that money deposited into an FDIC-insured bank is protected up to at least $250,000.
Overall, more than 99 percent of deposit accounts in the U.S. today are under this deposit insurance coverage limit and are fully protected by the FDIC. Since the FDIC’s creation 90 years ago, no depositor has lost a penny of their insured deposits.
The FDIC has also seen a rising number of cases online where firms or individuals have misused the FDIC’s name or logo or have made false or misleading representations about deposit insurance. This has raised confusion among consumers about the insurability of nonbanks and crypto assets.
To determine if an institution is FDIC-insured, you can ask a representative of the institution, look for the FDIC sign at the institution, or use the FDIC’s BankFind tool.
This new public awareness campaign features a piggy bank, which is commonly associated with money and personal savings, placed in potentially risky situations. Recognizing that many Americans may be putting their money at risk, the advertisements emphasize, “Know Your Risk. Protect Your Money.”
The campaign consists of digital display ads, including web banners, as well as search engine marketing and sponsored social media that connect consumers to deposit insurance information and resources on the FDIC’s website. The digital campaign will run now through November and then will continue in January 2024 with the start of traditional tax filing season.
More information can be found on the FDIC website and individuals can follow the social media conversation at #IsYourMoneyInsured.