Federal Deposit Insurance Corporation

What Does Federal Deposit Insurance Corporation Mean?

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government corporation established in 1933. Its main mission is to maintain public confidence in the nation’s financial system, primarily by insuring deposits and protecting depositors against bank failures.

Insuranceopedia Explains Federal Deposit Insurance Corporation

The FDIC, an independent government agency, insures deposits at its member banks and thrift institutions for up to $250,000 per depositor, per member bank. Notably, only member banks and thrift institutions are eligible for FDIC benefits.

The FDIC was established in response to the widespread bank failures of the 1920s and 1930s. As of 2015, it directly supervises over 4,500 member banks to promote sound banking practices.