Question: |
Are Treasury securities insured? |
Category: |
Business & Finance > Investing |
Keywords: |
FDIC, insure, Treasury, bill, notes, bonds, T-bills, security |
Type: |
other |
Rating: (0 ratings) Views: 604 Discussions: 0 In Watch Lists: 1 |
|
|
Answer:
|
Treasury securities include Treasury bills (T-bills), notes and bonds. T-bills are commonly purchased through a financial institution.
Customers who purchase T-bills at banks that later fail become concerned because they think their actual Treasury securities were kept at the failed bank. In fact, in most cases banks purchase T-bills via book entry, meaning that there is an accounting entry maintained electronically on the records of the Treasury Department; no engraved certificates are issued. Treasury securities belong to the customer; the bank is merely acting as custodian.
Customers who hold Treasury securities purchased through a bank that later fails can request a document from the acquiring bank (or from the FDIC if there is no acquirer) showing proof of ownership and redeem the security at the nearest Federal Reserve Bank. Or, customers can wait for the security to reach its maturity date and receive a check from the acquiring institution, which may automatically become the new custodian of the failed bank's T-bill customer list (or from the FDIC acting as receiver for the failed bank when there is no acquirer).
Even though Treasury securities are not covered by federal deposit insurance, payments of interest and principal (including redemption proceeds) on those securities that are deposited to an investor's deposit account at an insured depository institution ARE covered by FDIC insurance up to the $250,000 limit. And even though there is no federal insurance on Treasury securities, they are backed by the full faith and credit of the United States Government - the strongest guarantee you can get.
|
Read more questions from WISTEME through
|
|
Add to Groups Add to Watch Lists Share Question
|
|
Are Treasury securities insured?
|
|
|
|
More Readings :
|
[QID:6952] |
Are mutual funds insured?
|
[QID:4198] |
Did the Treasury Department remove the $2 bill from circulation?
|
[QID:1475] |
What should I know before I plan to have a spring break in mexico?
|
[QID:6951] |
What is and what is not insured by FDIC?
|
[QID:1481] |
What is the FDIC?
|
[QID:3375] |
How to use the Internet securely?
|
[QID:4287] |
What are fixed-income securities?
|
[QID:3099] |
What are the security vulnerabilities of cordless phones?
|
[QID:3095] |
How computer hackers work?
|
[QID:3094] |
What are computer viruses and other "infections"?
|
|
|
Question ID: ${question.id} Current Version: ${question.version} |
{for qh in questionHistory} {if qh.status == 'r'} {else} {/if} {/for}
ID |
Topics |
Replies |
Latest Post (ET) |
{if dlist!=null} {for d in dlist} {/for}
${parseInt(d_index)+1} |
${d.sentence} |
${d.replyNum} |
${d.lastestDate} |
|
{for k in d.discussionPost} {var x=0;} {eval} while(k.id>0){ {x=x+30;} k.id--; } {/eval} {/for}
|
${k.content}
by ${k.createdByNickname} ${k.createdDate} [reply]
|
|
|
|
{else}
{/if}
|