What types of investments does the FDIC not cover?

The Federal Deposit Insurance Corporation (FDIC) primarily protects depositors by insuring deposits made at member banks and savings associations, covering certain types of accounts within those institutions. However, the FDIC does not provide coverage for investments that are not classified as deposits.

Mutual funds and annuities are investment products sold by banks or financial institutions, but they do not fall under FDIC insurance since they are not bank deposits. Similarly, stocks and bonds are market securities and also do not qualify for FDIC coverage. Real estate investments, while they may offer certain protections through different avenues, are not covered by the FDIC.

By stating "both mutual funds and securities that are not deposits," the answer correctly identifies that the FDIC's coverage does not extend to these investment types. This reflects an understanding of the specific role that the FDIC plays in the financial system, which is to insure bank deposits and not to safeguard general investment products.