The U.S. Federal Deposit Insurance Corporation (FDIC) does not insure money market funds. They are mutual fund investment products, rather than bank deposits, and they are not insured even when they are offered through an FDIC-insured bank and include check-writing privileges. Money market mutual funds generally invest in short-term certificates of deposit (CDs) or securities such as U.S. Treasury bills or government or corporate bonds. Although money market funds aim to retain a value of $1 per share, their value may increase or decrease, and it is possible for you to lose your money.

In September of 2008, in an attempt to stem a run on money market funds, the U.S. Department of Treasury established the Temporary Guarantee Program for Money Market Funds. Participating funds paid for the program, which guaranteed investors a share price of $1. The program applied only to shares held on September 19, 2008. The insurance was to last for up to one year.

Money market funds are different from money market deposit accounts. Money market deposit accounts are bank accounts that earn interest at a rate set and paid by the bank. They usually require a minimum balance and limit the number of customer transactions within a given time period. Like traditional bank accounts, the FDIC usually insures money market deposit accounts up to the legal limit of $250,000.

The FDIC, an independent agency of the U.S. government, insures against the loss of deposits if an FDIC-insured bank or savings association fails. Types of FDIC-insured accounts include:

• Checking accounts, including money market deposit accounts
• Savings accounts
• NOW accounts
• CDs
• Retirement accounts on deposit at insured institutions

More information about insured accounts is available at the FDIC Web site.