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.

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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    Though all mutual funds are considered liquid assets, only certain funds are considered cash equivalents. What Is a Cash ... Read Full Answer >>
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    Mutual funds are not Federal Deposit Insurance Corporation (FDIC)-insured because money invested in funds are not considered ... Read Full Answer >>
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    401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit ... Read Full Answer >>
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