What Does the FDIC Do?


Quick Answer

The Federal Deposit Insurance Corporation insures deposits that are made to bank accounts and thrift institutions. The FDIC insures up to $250,000 per depositor, per bank account. The FDIC was created as an independent agency of the federal government in 1933.

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Full Answer

The FDIC is focused on ensuring that the public has confidence in the banking and financial systems of the United States. By insuring the deposits of a consumer, the FDIC minimizes the risk to a depositor should the bank or thrift institution fail. The FDIC also warns consumers of possible bank scams, with the goal of ensuring that a depositor's financial information is not used fraudulently.

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