The Federal Deposit Insurance Corporation (FDIC) is the U.S. government agency responsible for insuring deposits at most banks and savings institutions. It was created in 1933 during the Great Depression to restore trust in the American banking system after thousands of bank failures caused widespread panic. The FDIC guarantees the safety of checking, savings, and certain retirement accounts up to $250,000 per depositor, per insured bank. This protection means that if an FDIC-insured bank fails, customers are reimbursed for their insured deposits without losing a cent, within the coverage limit. The FDIC is funded by premiums paid by member banks — not by taxpayer dollars — and plays a critical role in monitoring the health of the banking system. It also supervises and regulates financial institutions to ensure safe practices and limit risk. Understanding what the FDIC does is essential for every American banking customer who wants peace of mind that their deposits are protected.