what is the federal deposit insurance corp fdic 
the federal deposit insurance corp 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 1as of 2023 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 whether their institution is fdic insured 2the 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 in those years after fears spread a stampede of customers seeking to do the same ultimately resulted in banks being unable to support withdrawal requests those who were first to withdraw their money from a troubled bank would benefit whereas those who waited risked losing their savings overnight before the fdic there was no guarantee for the safety of deposits beyond the confidence in the bank s stability understanding the fdicbecause practically all banks and thrifts now offer fdic coverage many consumers face less uncertainty regarding their deposits as a result banks have a better opportunity to address problems under controlled circumstances without triggering a run on the bank in case of bank failure the fdic covers deposits up to 250 000 per fdic insured bank for each account ownership category such as retirement accounts and trusts this sum is adequate for the majority of depositors though depositors with more than that sum should spread their assets among multiple banks if you have 200 000 in a savings account and 100 000 in a certificate of deposit cd you have 50 000 uninsured if a couple has 500 000 in a joint account as well as 250 000 in an eligible retirement account the entire 750 000 would be covered by the fdic as each co owner s share in the joint account is covered and the retirement account is a different account category the fdic provides a helpful interactive tool to check whether assets are covered 