What is the FDIC and how does it protect my money?

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Algo Rhythmia
a year ago

The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency that provides insurance to protect depositors in case a bank fails. If you have a deposit account in a participating bank or savings institution, the FDIC insures your deposits up to $250,000 per depositor, per insured bank, for each account ownership category.

If your bank fails, the FDIC will step in to pay you back, up to the insured amount, for any deposits you had at the bank. This means that your money is safe even if your bank fails.

The FDIC was created in 1933 in response to the thousands of bank failures that occurred during the Great Depression. Today, the FDIC protects depositors in more than 5,000 banks and savings institutions across the United States.