The FDIC, or the Federal Deposit Insurance Corporation, is a government agency that protects the money at most banks. Get informed about how the FDIC keeps money insured.
FDIC four little letters stand for Federal Deposit Insurance Corporation and it’s the federal government acting like an insurance company for your bank.
Before we say more here’s a little background in the early 20th century America experienced something called the Great Depression during this time many American banks failed and millions of people lost not only their jobs but a lot of their money as well.
At the time the banks were insured for the money that people deposit it so when the banks went under people’s money went with them to make sure something like this didn’t happen again the government created the FDIC which insures Bank deposits even if the bank itself fails.
Now for almost a hundred years the FDIC has been working hand-in-hand with banks big and small to watch out for people’s money.
Pretty cool right?
Now there are limits to how much money the FDIC insures but as long as you don’t have more than $250,000 deposited per person help keep your money safe.
Got more money than that there are ways to get additional coverage like opening multiple accounts where is joint account.
So now you know how your bank and the government work together to protect your money.