Definition of the Day October 16.

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.

Investopedia explains '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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