Who is the FDIC?

Have you heard of the term… FDIC insured? I bet you have, online, or when visiting your bank. But how much do you really know about the FDIC? Well here are the most important things you need to know…

FDIC stands for Federal Deposit Insurance Corporation. It was started in 1933 as an independent agency of the federal government, in response to the thousands of bank failures in the 1920’s and 1930’s.

The main goal of the FDIC is to promote public confidence in the US financial system, by insuring deposits in banks and thrift institutions up to $250,000.

Since it’s inception on January 1, 1934… no depositor has lost a single cent of insured funds as a result of a bank failure.

Now the FDIC only insures deposits, not securities, mutual funds or similar types of investments.

The FDIC is funded by premium payments sent to them from banks and thrift institutions for deposit insurance.

The bottom line is…it’s good to have your money at a FDIC insured bank, for deposits below $250,000.

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