Is Phoenix Capital Group Fdic Insured?
Is Phoenix Capital Group FDIC Insured?
What is FDIC Insurance?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency that provides deposit insurance for depositors in banks and other financial institutions in the United States. It was created in 1934 in response to the Great Depression when many banks failed and people lost their savings. Through FDIC insurance, depositors are assured that their deposits are backed by the full faith and credit of the United States government. In other words, if a bank fails, the FDIC will reimburse depositors up to a certain amount.
Does Phoenix Capital Group Have FDIC Insurance?
Phoenix Capital Group is not FDIC insured. Phoenix Capital Group is a registered investment adviser and is not a bank or financial institution. Therefore, the FDIC does not insure deposits held at Phoenix Capital Group. However, Phoenix Capital Group does provide its clients with a number of other services such as financial planning, portfolio management, and retirement planning.
What Are the Alternatives to FDIC Insurance?
The Securities Investor Protection Corporation (SIPC) is a private, non-profit organization that protects investors when their broker-dealers become insolvent and unable to return assets to their clients. SIPC insures up to $500,000 per customer, including up to $250,000 for cash claims. In addition, Phoenix Capital Group maintains a fidelity bond that provides additional coverage for its clients. The fidelity bond provides up to $10 million in coverage for claims related to theft or fraud.
Conclusion
Phoenix Capital Group is not FDIC insured. However, the firm does provide its clients with the security of SIPC insurance and a fidelity bond. Therefore, investors can feel confident that their investments are protected.