What is considered an "insured bank" according to the FDIC?

An "insured bank" according to the FDIC is one that is a member of the FDIC. Membership in the FDIC ensures that the bank is part of the federal insurance system that protects depositors against the loss of their insured deposits in the event of a bank failure. This protection typically applies to checking accounts, savings accounts, and certificates of deposit within certain limits, currently up to $250,000 per depositor, per insured bank, for each ownership category.

Being a member of the FDIC means the bank has met specific regulatory requirements and complies with the standards set by the FDIC, demonstrating its soundness and stability. This membership is crucial for depositors when assessing the safety of their funds held in a bank.

In contrast, factors such as whether a bank has a federal charter or offers specific types of accounts, like stock options or investment accounts, do not determine its status as an insured bank. These aspects are generally unrelated to the bank's membership in the FDIC or its eligibility for providing insurance to depositors.