In an effort to raise awareness about deposit insurance and
its ability to protect consumers’ financial interests in the event of a bank
failure, the Federal Deposit Insurance Corp. (FDIC) recently launched a
national campaign dubbed, “Know Your Risk. Protect Your Money.”
The campaign is designed to engage individuals who are
unbanked or whose confidence in the U.S. banking system may be particularly
low. It also aims to reach consumers who use mobile payment systems,
alternative banking services and financial products appearing to be
FDIC-insured but are not.
“Consumers today have a variety of options for where they
can put their money. Evidence suggests many people may be confused whether
their funds are protected by deposit insurance,” FDIC Chairman Martin Gruenberg
said in a press release. “In light of concerns raised by the bank failures
earlier this year, this is an important moment for the FDIC to reach out to the
public and ensure that more consumers understand deposit insurance and how it
protects their money.”
After the failures of three regional banks in March,
a Gallup poll revealed almost half of Americans surveyed are concerned
about the safety of their funds deposited in banks and other financial
institutions. The FDIC views this uncertainty as suggesting a significant
percentage of consumers surveyed do not know money deposited into an
FDIC-insured bank is protected up to at least $250,000.
Currently, more than 99 percent of deposit accounts in the
U.S. are protected under the FDIC’s deposit insurance coverage. The agency also
noted since its creation 90 years ago, no depositor has lost any of their
insured deposits.
The FDIC has recorded an increasing number of instances in
which firms or individuals have misused the FDIC’s name or logo online. Some
have made false or misleading representations about deposit insurance, which
raises confusion among consumers about the insurability of nonbanks and
crypto-assets. To determine if an institution is FDIC-insured, you can ask a
representative of the institution, look for the FDIC sign at the institution or
use the FDIC’s BankFind tool.
To advertise its public awareness campaign, the FDIC is
using an illustration featuring a common symbol of money and personal savings –
a piggy bank. The campaign consists of digital display ads, including web
banners, as well as search engine marketing and sponsored social media that
connect consumers to deposit insurance information and resources on the FDIC’s
website in English and Spanish. The digital campaign will run through November
and resume in January 2024 with the start of traditional tax filing season and
when many consumers receive refund payments.