Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency created by the Glass-Steagall Act of 1933. The vast number of bank failures in the Great Depression spurred the United States Congress into creating an institution which would guarantee banks, inspired by the success the Commonwealth of Massachusetts experienced with Deposit Insurance Fund (DIF). The FDIC currently guarantees checking and savings deposits in member banks up to $100,000 per depositor.

What is insured by the FDIC

Here is what is covered by FDIC insurance:

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• Checking accounts, Negotiable Order of Withdrawal, also called NOW accounts (checking accounts that earn interest), and Money Market Deposit Accounts, also called MMDAs (savings accounts that allow a limited number of checks to be written each month.)
• Savings accounts that you can add to or withdraw from at any time.
• Certificates of deposit (CDs), which generally require you to keep funds in the account for a set period - the maturity.