Verbull Word of the day
Finance glossary

FDIC Insurance

Banking · beginner
Definition

U.S. government insurance protecting bank deposits.

The Federal Deposit Insurance Corporation insures deposits at member banks up to 250,000 dollars per depositor, per bank, protecting savers if a bank fails. Created after the Great Depression, it underpins confidence in the banking system and helps prevent bank runs.

In a sentence

Even when the bank failed, his deposits were safe thanks to FDIC insurance up to $250,000.

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