FDIC (Federal Deposit Insurance Corporation)

The Federal Deposit Insurance Corporation is an independent federal agency created in 1933 in response to the bank failures of the Great Depression. It provides insurance coverage for deposits at member banks and savings institutions, guaranteeing up to $250,000 per depositor, per insured bank, for each account ownership category.

FDIC insurance covers checking accounts, savings accounts, money market deposit accounts, and certificates of deposit. It does not cover investments such as stocks, bonds, mutual funds, or annuities, even if purchased at an insured bank.

By providing this safety net, the FDIC promotes public confidence in the U.S. financial system and prevents bank runs. When a bank fails, the FDIC steps in to either facilitate its sale to a healthy bank or directly reimburse depositors. Since its founding, no depositor has lost a single penny of FDIC-insured funds.