What is FDIC insurance, and how does it apply to my Credit Builder account?

FDIC insurance is one of the ways your money stays safe when it’s held at a bank.

The FDIC (that’s the Federal Deposit Insurance Corporation) is a U.S. government agency that protects your deposits if a bank fails. If a bank where your money is held were to go out of business, the FDIC steps in and makes sure you get your money back—up to $250,000 per depositor, per bank, and per ownership category.

Since your Credit Builder loan contributions are held for your benefit in a deposit account at Coastal Community Bank (an FDIC Member), those contributions are covered by FDIC insurance. 

If the bank were to ever fail, you won’t lose your money. The FDIC would reimburse you (usually within a few days) for any contributions you made to your Credit Builder account (up to $600). Nothing is required by you for this protection to take place. You don’t need to fill out any extra forms or pay any fees.