FDIC Insurance
Federal deposit insurance protecting bank account holders up to $250,000 per depositor per institution.
What is FDIC Insurance?
FDIC (Federal Deposit Insurance Corporation) insurance protects depositors at member banks against bank failure, covering up to $250,000 per depositor, per insured bank, per ownership category. It covers checking accounts, savings accounts, money market accounts, and CDs — but not investment products like stocks, bonds, or mutual funds. Created in 1933 during the Great Depression, FDIC insurance has prevented bank runs by assuring depositors their funds are safe. As of 2024, no depositor has lost insured funds due to a bank failure since the FDIC was established.
Example
When Silicon Valley Bank failed in March 2023, the FDIC stepped in to make depositors whole. While the standard limit is $250,000, the US government invoked a systemic risk exception to guarantee all deposits — including those above $250,000.
Source: FDIC — About