Even though Treasury securities are not covered by federal deposit insurance, payments of interest and principal (including redemption proceeds) on those securities that are deposited account at an insured depository institution ARE covered by FDIC insurance up to the $100,000 limit. And even though there is no federal insurance on Treasury securities, they are backed by the full faith and credit of the United States Government - the strongest guarantee you can get.

Safe Deposit Boxes

The contents of a safe deposit box are NOT insured by the FDIC, nor, generally, by the bank where the box is located. (Make sure you read the contract you signed with the bank when you rented the safe deposit box in the event that some type of insurance is provided; some banks may make a very limited payment if the box or contents are damaged or destroyed, depending on the circumstances.) If you are concerned about the safety, or replacement, of items you have put in a safe deposit box you may wish to consider fire and theft insurance. Separate insurance for these perils may be available; consult your insurance agent. Usually such insurance is part of a homeowner's or tenant's insurance policy for a residence and its contents. Again consult your insurance agent for more information. If floods and earthquakes have been known to occur in your location, you may want to look into insurance against these natural disasters.

In the event of a bank failure, in most cases an acquiring institution would take over the failed bank's offices, including locations with safe deposit boxes. If the FDIC conducts a payoff because no acquirer can be found, box holders would be sent instructions about removing the contents of their boxes.

Robberies and Other Thefts

Stolen funds may be covered by what is called a banker's blanket bond, which is a multi-purpose insurance policy a bank purchases to protect itself from fire, flood, earthquake, robbery, defalcation, embezzlement and other causes of disappearing funds. The blanket's blanket bond insurance may cover the loss and the funds could be returned to the customer. However, if a third party somehow gains access to your account and transacts business that you would not approve of, you must contact the bank and your local law enforcement authorities, who have jurisdiction over this type of wrongdoing.

Contact FDIC for more information about deposit insurance >