Deposit Insurance
Yield Horizont's commitment to security:
Yield horizon collaborates with federally insured banks and credit unions, ensuring your savings are protected up to the applicable limits.
All deposit balances on the Yuidhorizon platform are held at federally insured financial institutions. Yuidhorizon has established a unique network of banks and credit unions offering some of the most competitive savings products and rates available. A key requirement for any institution to join the Yuidhorizon network is federal deposit insurance backing. Each participating bank is a member of the FDIC, and each credit union is insured by the NCUA. This ensures that all savers using Yuidhorizon have the security and peace of mind that their savings are protected.
What is Deposit Insurance?
Federal deposit insurance provides coverage for cash savings held by banks and credit unions on behalf of their customers and members. This protection is offered by two main agencies: the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA).
If a financial institution supported by these agencies becomes insolvent and cannot honor the deposits it holds, the FDIC and NCUA step in to reimburse those individuals for their losses, dollar-for-dollar. The coverage limit is generally $250,000 per depositor, per institution, per account ownership category.
FDIC and NCUA insurance are backed by the full faith and credit of the U.S. government. According to the FDIC, no depositor has lost any FDIC-insured funds since 1933. Similarly, the NCUA reports that no credit union member has lost any insured savings at a federally insured credit union.
This makes holding cash in a bank or credit union with federal deposit insurance much safer compared to investing in stocks, bonds, or other assets without institutional protection against the loss of principal.
How Does Deposit Insurance Work?
FDIC Insurance
For Yield Horizon customers with savings products from partner banks, funds are insured through the FDIC's Deposit Insurance Fund (DIF) up to the legal maximum permitted at each bank where the funds are held.
The standard FDIC insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. The FDIC defines ownership categories to include single accounts (owned by one person) and certain types of trust and retirement accounts (e.g., IRAs).
All deposits at a bank—whether made through Yield Horizon or not—count towards the deposit insurance limit. If the total funds held at a bank in a specific ownership category exceed the coverage limit, the amount above the limit will not be insured. Thus, if your individual savings account(s) at a bank exceed $250,000, you would be at risk for the amount over $250,000 in the rare event of the bank's failure.
For more details about FDIC insurance, visit fdic.gov.
NCUA Insurance
For Yield Horizon customers with savings products from partner credit unions, funds are insured by the NCUA through its Share Insurance Fund (NCUSIF). Each credit union member is insured up to $250,000.
For more information about NCUA insurance, visit ncua.gov.
How Are FDIC and NCUA Insurance Funded?
What are the sources of funding for these agencies in case they need to cover an insured institution?
The FDIC’s Deposit Insurance Fund is financed through premiums paid by insured banks and earnings from its investments in U.S. Treasury securities. Federal or state tax revenues do not contribute to the Deposit Insurance Fund. Similarly, the NCUSIF’s funding comes from capitalization deposits from insured credit unions, guarantee fees, premium payments, and investments in U.S. Treasury securities.
All Deposit Balances on the Yield Horizon Platform Are Held at Federally Insured Financial Institutions
Yield Horizon has established a network of banks and credit unions that offer highly competitive savings products and rates. A crucial criterion for joining the Yield Horizon network is that the institution must be backed by federal deposit insurance. Each bank in the Yield Horizon network is an FDIC member, and each credit union is covered by NCUA insurance, ensuring that all savers using Yield Horizon can have confidence in the security of their savings.
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