Finance glossary
FDIC Insurance
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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