FDIC
A federal guarantee of savings bank deposits
The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency that provides deposit insurance to protect depositors in case of bank failures. The FDIC was established in 1933 in response to the banking crisis that occurred during the Great Depression. The FDIC is funded by premiums paid by depositary institutions and managed by a board of directors appointed by the U.S. President.
The FDIC provides deposit insurance of up to $250,000 per depositor, per insured bank. This means that if a bank fails, depositors with accounts totaling $250,000 or less will receive the full value of their deposits. The FDIC insures deposits held in checking accounts, savings accounts, certificates of deposit (CDs), money market accounts, and certain retirement accounts.
In addition to providing deposit insurance, the FDIC also examines and supervises insured banks to ensure that they are operating safely and soundly, and to prevent bank failures. The FDIC also provides guidance to banks on how to manage risks and comply with banking regulations.
Overall, the FDIC plays an important role in maintaining the stability of the U.S. banking system and protecting consumer deposits.
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