Quick Definition

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that insures deposits at banks and savings institutions, protecting depositors against the loss of their insured deposits if an FDIC-insured bank or savings institution fails.

Examples

• 1A customer deposits $250,000 in a savings account at an FDIC-insured bank. If the bank fails, the FDIC ensures the customer's money is safe and reimbursed.
• 2A small business owner keeps their operating funds in a checking account at an FDIC-insured bank, providing them security against bank failures.
• 3An investor with multiple bank accounts totaling $300,000 at the same bank is insured up to $250,000, with the remaining $50,000 exceeding the FDIC coverage limit.

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