Federal Deposit Insurance Corporation (FDIC)

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that protects bank depositors by insuring their deposits. If a bank fails, the FDIC ensures that depositors are compensated up to $250,000 per account holder, per bank. This insurance helps maintain public confidence in the banking system, encouraging people to keep their money in banks rather than withdrawing it in times of uncertainty. Established in 1933 during the Great Depression, the FDIC also examines and supervises financial institutions to promote sound banking practices.