What are federal deposit insurance programs? The presence of federal deposit insurance on your accounts is often not readily apparent; sometimes it's only observable by the seal posted on a bank's door or by an image of the seal on the bank's website. However, the presence or absence of deposit insurance on your bank account can have a critical impact on the safety of your money. Suppose that walking into your financial institution, you see the following sign on the door: You are walking into What institutions are protected by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF)? The FDIC oversees and manages two separate insurance funds that apply to banks and savings associations. These two funds include the Savings Association Insurance Fund (SAIF), which provides coverage for . and the Bank Insurance Fund (BIF), which insures deposits in In an arrangement that seems inconsistent, mutual savings banks are insured by the In contrast, funds held in federally chartered credit unions are insured by the The following scenarios focus on how the presence or absence of deposit insurance deposits affects the depositors' wealth. Suppose that Maria's brother said that FDIC or NCUSIF deposit insurance on Maria's account covers the funds on deposit, but not her accrued interest. Maria's brother's information is Suppose that Rajiv and Simone called you to help them settle a disagreement that they had last night. Rajiv argued that FDIC and NCUSIF deposit insurance will cover mutual fund investments as well as insurance policies in the event the firms fail. Simone argued that the programs would not protect these assets. Who is right: Rajiv or Simone