Deposit and investor insurance
Plain definition. FDIC deposit insurance covers traditional checking and savings accounts, not investment products like stocks, mutual funds or crypto assets, even when bought from an insured bank.
Technical definition. The Federal Deposit Insurance Corporation, an independent agency created by Congress, says non-deposit investment products are not insured by the FDIC, even if they were purchased from an FDIC-insured bank. Those products include stocks, bonds, mutual funds, crypto assets and annuities. Investor protection works differently: the Securities Investor Protection Corporation (SIPC), a non-government entity, replaces missing stocks and other securities in customer accounts held by its members up to $500,000, including up to $250,000 in cash, if a member brokerage or bank brokerage subsidiary fails, but it does not protect against the loss in value of an investment.
On this site
On this site, Deposit and investor insurance comes up in What happens to my XRP if the exchange goes bankrupt?, Is my crypto insured like a bank account? and What rules must a Canadian crypto platform follow to hold my XRP?.
Source
Financial Products That Are Not Insured by the FDIC | FDIC.gov (fdic.gov), read October 1, 2026.