Yes, money market accounts (MMAs) offered by banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, for most account types. This means that if the bank fails, the FDIC will reimburse you for up to $250,000 of your insured deposits.
Here are some things to keep in mind about FDIC insurance for MMAs:
- The $250,000 limit applies to each depositor, not each account. So, if you have two MMAs at the same bank, the total amount of FDIC insurance for both accounts is still $250,000.
- The FDIC only insures certain types of deposits, such as checking accounts, savings accounts, and money market accounts. Other types of accounts, such as certificates of deposit (CDs) and investment accounts, are not insured by the FDIC.
- You can check if your MMA is FDIC-insured by looking for the FDIC logo on the bank’s website or on your account statement. You can also ask the bank directly.
If you are concerned about the safety of your money, it is a good idea to make sure that your MMA is FDIC-insured. You can also spread your deposits out among different banks to further protect your money.
