An account that is protected by the Federal Deposit Insurance Corporation (FDIC), an independent federal organisation tasked with protecting client deposits in the case of bank collapse, is referred to as an FDIC insured account. The FDIC was created in 1933 in response to the thousands of bank failures that occurred during the Great Depression.The FDIC insures deposits up to $250,000 per depositor, per insured institution. This means that if your bank fails, you will be able to recoup your deposited funds up to $250,000. The FDIC does not insure investments such as stocks, bonds or mutual funds.The current maximum amount of coverage provided by the FDIC is $1.4 trillion and covers more than 95% of all depositors nationwide. In order to be eligible for coverage under the FDIC's insurance program, accounts must be held at a financial institution that is regulated by either state or federal authorities and is members of either the Federal Reserve System or Federal Home Loan Bank System.So if you're looking for peace-of-mind when it comes to your hard-earned savings, make sure your accounts are FDIC insured.
