The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that provides deposit insurance to depositors in U.S. banks and thrifts. The FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and 1930s. The FDIC insures deposits up to $250,000 per depositor, per institution, for each account ownership category. It also examines and supervises financial institutions for safety and soundness, consumer protection, and compliance with applicable laws and regulations. The FDIC is based in Washington, D.C. and has regional offices throughout the country.

Bank deposit insurance is a form of protection that insures the money deposited in banks and credit unions against loss in the event of a bank failure. It is a guarantee by a government or governmentbacked agency that your funds will be returned to you even if the bank goes out of business. The purpose of deposit insurance is to protect customers from financial losses if the bank goes out of business, and to promote stability in the banking system.

Deposit insurance under the FDIC applies to all (licensed, supervised and insured) commercial banks, savings banks, and savings and loan associations within the United States and its territories. Investment firms, FinTech companies and other financial institutions are typically not insured by the FDIC. Furthermore, insured deposit do not include virtual currency and cryptos even where these are held with an insured depository institution.

Excluded creditors for bank deposit insurance typically include banks, credit unions, investment funds, insurance companies, and any other financial institutions. Additionally, governments, foreign entities, and certain trust accounts are often excluded. More information on the working of most international deposit protection schemes is available on our applicable website here