Are multi-currency accounts insured by the FDIC or similar entities in other countries?

When considering opening a multi-currency account, one common question that arises is whether these accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or similar entities in other countries. In this article, we will explore this topic in more detail.

The FDIC is an independent US government agency that provides deposit insurance to protect depositors in the event that a bank or savings institution fails. The FDIC insures deposits up to a certain amount per depositor per institution, currently set at $250,000 per depositor per insured bank.

However, multi-currency accounts may not be eligible for FDIC insurance as they are not considered traditional deposit accounts. Instead, multi-currency accounts are typically considered investment accounts or foreign currency deposits, which may not be eligible for FDIC insurance.

That being said, some banks may offer deposit insurance for multi-currency accounts through other government agencies or private insurers. For example, some banks may offer coverage through the Securities Investor Protection Corporation (SIPC), which provides insurance for securities and cash held in brokerage accounts.