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Facts About Bank Investments

Bank customers have a choice of savings and investment options. However, investments purchased at a bank are not deposits and are not insured by the Federal Deposit Insurance Corporation (FDIC).

In addition to traditional deposit accounts, such as checking, savings, and certificates of deposit, banks offer an array of nondeposit investment choices.

Non-Deposit Investment Products

Examples of nondeposit investment products that are not insured include:

  • Annuities
  • Mutual Funds
  • Stocks
  • Bonds
  • Government Securities
  • Municipal Securities
  • U.S. Treasury Securities

When you meet or talk with a sales representative about nondeposit investment products, you should be informed that:

  • The product is not insured by the Federal Deposit Insurance Corporation.
  • The product is not a deposit, or other obligation of, or guaranteed by, the bank.
  • The product is subject to investment risks, including possible loss of principal amount invested.

Look for the logo disclosure (see below) in visual media, such as television broadcasts, ATM screens, billboards, signs, posters, and in written advertisements and promotional materials, such as brochures.

Logo Disclosure

How to Protect Yourself

  • Never invest in a product you don’t understand.
  • Be sure you have enough information before making an investment. Ask questions until you are satisfied.
  • Investments ALWAYS entail some degree of risk: understand the risks.
  • Be sure your sales representative knows your financial objectives and risk tolerance.

Find out more about your registered sales representative or broker/dealer by calling the Financial Industry Regulatory Authority,  formerly the National Association of Securities Dealers), phone: (800) 289-9999.

Source: Federal Deposit Insurance Corporation (FDIC)