Definition of FDIC insurance:
Insurance policy provided by financial institutions affiliated with the FDIC. Under this policy, consumers deposits are covered up to $250,000 if the bank becomes insolvent. This insurance is backed by the tax authority of the United States. The amount was extended from $150,000 to $250,000 during the financial crisis of 2008 as consumers raised concerns over unstable banks.
Meaning of FDIC insurance & FDIC insurance Definition