How the US banking system works and how reliable it is

When US residents invest in a bank, they know that it is secure.

Фото: Depositphotos

Not a single American has lost a penny of insured bank deposits since 1933. It was then that the government introduced guarantees after the Great Depression, the newspaper writes Share America.

Three factors that contribute to protecting the financial contributions of Americans:

Anyone who opens a US bank account can do so in an institution that demonstrates the “FDIC” logo for the Federal Deposit Insurance Corporation (FDIC). If an organization is affiliated with FDIC, this means that the money that is invested in settlement, savings and other accounts is insured by the “full faith and credit” of the United States.

In the unlikely event of a bank failure, the FDIC bank guarantees that depositors can get their savings back to a certain limit. For one account, this limit today is 250 thousand dollars.

Banks also use high-tech fraud detection systems to prevent hackers from emptying accounts.

“Such a simple thing as an insured deposit account gives families the opportunity to safely deposit income. I think we take this for granted, but the safety of savings is very important, ”explained Martin Grünberg, chairman of the FDIC.

Abuse Prevention

US institutions also protect the rights of citizens applying to banks and financial service providers who do not follow the rules.

Captain Will Jamison, a lawyer helping members of the United States Air Force, said one of his clients faced a financial crisis when he was transferred to another base. His bank did not allow him to sell his house for nine months. But the soldier was not able to pay two mortgages. It was then that they contacted the Consumer Financial Protection Bureau (CFPB), another US agency, whose representatives solved the problem within two weeks.

The US government also promotes the equalization of rules for all, ensuring that banks and financial companies do not deny anyone loans or other products based on the client’s race, religion or national origin.

In the United States there are several institutions that protect the rights and savings of citizens.

Read also on ForumDaily:

The US Federal Reserve has announced an economic outlook for the country.

10 habits of Americans who are doing well with money

Three ways to protect your money before a divorce

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.