How does the FDIC define a deposit account?

Prepare for the FDIC Technical Evaluation Test with engaging questions and comprehensive explanations. Enhance your knowledge and boost your confidence for the exam!

The FDIC defines a deposit account as a bank account held at an insured bank. This definition emphasizes the critical aspect of FDIC insurance, which protects depositors by insuring their deposits up to a certain limit, currently $250,000 per depositor per insured bank. The insurance is a key feature that distinguishes deposit accounts at insured banks from those at non-insured entities.

In this context, options that suggest non-insured banks or specific account types such as interest-bearing accounts or restrictions to certain types of entities (like corporations) do not align with the FDIC's broad definition of what constitutes a deposit account. Therefore, the focus on being held at an insured institution is essential, as it ensures that depositors have federal protection on their funds.

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