The Federal Deposit Insurance Corporation (FDIC) is a federal agency that protects customers against the loss of deposits in FDIC-insured banks. FDIC insurance has coverage limits of $250,000 and does not cover money invested in stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, or money market funds, even if these investments were purchased from an FDIC-insured bank.
The National Credit Union Administration is also a federal agency, but it protects against the loss of credit union deposits. NCUA insurance works in the same way as FDIC coverage.
The Securities Investor Protection Corporation (SIPC), is a nonprofit membership corporation created by federal statute that protects customers of SIPC-member broker-dealers if the firm fails financially. SPIC has coverage limits of $500,000 and does not protect investors if the value of their investments fails.