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Financial Institution Letters

Sales of Nondeposit Investments

May 27, 1998

SUBJECT: FDIC's Brochure Insured or Not Insured-A Guide to What Is and Is Not Protected by FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) would like to remind financial institutions of the availability of its brochure Insured or Not Insured-A Guide to What Is and Is Not Protected by FDIC Insurance. The brochure clearly describes which bank and thrift products are-and are NOT-insured. A sample copy is attached.

The brochure explains the term "mutual fund" and advises purchasers to obtain definitive information before investing. It also clearly states that mutual funds are not deposits and, therefore, are not insured by the FDIC or any federal agency. The brochure explains the difference between FDIC deposit insurance and insurance from other sources that may be available on certain other bank products. The brochure includes a discussion of the insurance aspects of Treasury securities, safe deposit boxes and robberies.

Institutions that sell nondeposit products either directly or through a third party are strongly urged to provide this brochure to anyone who inquires about or purchases such products. The brochure will help to eliminate customer confusion about whether or not a product is insured.

Institutions may order copies of the brochure (free of charge) until the present supply is depleted. To order, write to:


Warehouse and Distribution Center
3501 N. Fairfax Drive
Arlington, VA 22226

Include the name and address to whom copies are to be sent and the name and telephone number of a contact person.

For further information about ordering the brochure, please call Manual Alston at the FDIC's Warehouse on (703) 516-5660.

Carmen J. Sullivan

Attachment: The brochure is available on the FDIC's Web site at:


Distribution: All Insured Banks and Savings Associations

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 (800-276-6003 or (703) 562-2200).


Last Updated 07/17/1999 communications@fdic.gov