Federal Deposit Insurance Corporation (FDIC)

Definition

The FDIC is a U.S. government agency that protects depositors by insuring deposits at banks and savings associations up to $250,000 per depositor, per insured bank, for each account ownership category. It also supervises financial institutions for safety and consumer protection.

Related terms

Bank Failure: This occurs when a bank is unable to meet its obligations to depositors or creditors and thus has to cease operations.

Deposit Insurance: A guarantee that depositors will recover their money up to a certain limit if their bank fails.

Risk Management: The process of identifying, assessing, and controlling threats to an organization's capital and earnings, which includes ensuring financial institution safety overseen by agencies like the FDIC