Federal Deposit Insurance Corporation (FDIC)

Federal Deposit Insurance Corporation (FDIC),

Definition of Federal Deposit Insurance Corporation (FDIC):

  1. The primary purpose of the FDIC is to prevent "run on the bank" scenarios, which devastated many banks during the Great Depression. For example, with the threat of the closure of a bank, small groups of worried customers rushed to withdraw their money.

  2. The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices. As of 2020, the FDIC insures deposits up to $250,000 per depositor as long as the institution is a member firm. It is critical for consumers to confirm if their institution is FDIC insured.

  3. A federal agency that provides insurance on funds deposited with banks and thrift institutions. Established in 1933 for the purpose of instilling confidence in the nations banking system, the FDIC insures deposits for up to $100,000 per account-holder per financial institution. It was created by the Banking Act of 1933.

How to use Federal Deposit Insurance Corporation (FDIC) in a sentence?

  1. The FDIC covers checking and savings accounts, CDs, money market accounts, IRAs, revocable and irrevocable trust accounts, and employee benefit plans.
  2. As of 2020, the FDIC insures deposits up to $250,000 per depositor as long as the institution is a member firm.
  3. The Federal Deposit Insurance Corporation is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. .
  4. Mutual funds, annuities, life insurance policies, stocks, and bonds are not covered by the FDIC.

Meaning of Federal Deposit Insurance Corporation (FDIC) & Federal Deposit Insurance Corporation (FDIC) Definition