Federal Deposit Insurance Corporation - FDIC


DEFINITION of 'Federal Deposit Insurance Corporation - FDIC'

The U.S. corporation insuring deposits in the U.S. against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.


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BREAKING DOWN 'Federal Deposit Insurance Corporation - FDIC'

The FDIC will insure deposits of up to US$250,000 per institution as long as the bank is a member firm.

Before opening an account with a financial institution, be sure to check that it is FDIC insured.

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  1. Does the FDIC cover credit unions?

    The Federal Deposit Insurance Corporation (FDIC) does not cover credit unions. The FDIC only insures deposits in banks and ... Read Full Answer >>
  2. Are mutual funds considered cash equivalents?

    Though all mutual funds are considered liquid assets, only certain funds are considered cash equivalents. What Is a Cash ... Read Full Answer >>
  3. Why are mutual funds not FDIC-insured?

    Mutual funds are not Federal Deposit Insurance Corporation (FDIC)-insured because money invested in funds are not considered ... Read Full Answer >>
  4. Why is my 401(k) not FDIC-Insured?

    401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit ... Read Full Answer >>
  5. Is my IRA/Roth IRA FDIC-Insured?

    The Federal Deposit Insurance Corporation, or FDIC, is a government-run agency that provides protection against losses if ... Read Full Answer >>
  6. What are some of the major regulatory agencies responsible for overseeing financial ...

    There are a number of agencies assigned to regulate and oversee financial institutions and financial markets, including the ... Read Full Answer >>
  7. What role does credit play in the economic boom and bust cycle?

    A great deal of economic literature has been written about the nature of economic cycles, and it has usually led to even ... Read Full Answer >>
  8. What's the difference between investment banks and commercial banks?

    Investment banking and commercial banking are two divisions of the banking industry that provide substantially different ... Read Full Answer >>
  9. What factors are the primary drivers of banks' share prices?

    In a broad sense, bank share prices are driven by the same forces as any other shares. Major, abstract factors include overall ... Read Full Answer >>
  10. What agencies were created by the Glass-Steagall Act?

    The Glass-Steagall Act, also known as the Banking Act of 1933, was proposed and passed by Congress in response to the failure ... Read Full Answer >>
  11. What kind of securities should a risk-averse investor buy?

    While most investors are focused on investment options with high rates of return, some individuals are more concerned with ... Read Full Answer >>
  12. To what extent do banks have exposure to different business lines?

    A bank's primary exposure to any outside business or institution is constituted by the amount of capital it has invested ... Read Full Answer >>
  13. What is the banking sector?

    The banking sector is the section of the economy devoted to the holding of financial assets for others, investing those financial ... Read Full Answer >>
  14. What US banks offer the best savings accounts?

    Individuals interested in saving money in a savings account must consider two major factors: yield and security. As of 2 ... Read Full Answer >>
  15. I know there is a form of deposit insurance where a portion of my bank account deposits ...

    First things first, it's only partially correct to think that a portion of your bank deposits is protected. The Federal Deposit ... Read Full Answer >>
  16. Are all bank accounts insured by the FDIC?

    The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects you against ... Read Full Answer >>

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