Definition

1. Proper noun:
   • A U.S. government agency that insures bank deposits: The Federal Deposit Insurance Corporation (FDIC) is a federal corporation created to maintain stability and public confidence in the nation's financial system. Its primary function is to insure deposits at member banks and thrift institutions, protecting depositors against the loss of their insured funds if an FDIC-insured institution fails.

Usage Examples

• Proper noun:
  • The Federal Deposit Insurance Corporation was established in 1933 in response to widespread bank failures.
  • Before opening an account, verify that the bank is a member of the Federal Deposit Insurance Corporation.
  • Deposits are protected up to the legal limit by the Federal Deposit Insurance Corporation.

Advanced Usage

• "FDIC-insured": Describes a financial institution or account whose deposits are protected by the FDIC.
  • All savings accounts at this bank are FDIC-insured.
• "FDIC coverage": Refers to the protection and limits provided by the FDIC.
  • You should understand the limits of your FDIC coverage.

Variants and Related Words

• FDIC: The standard and most common acronym for the Federal Deposit Insurance Corporation.
  • You can check the FDIC's website for more information.
• Deposit insurance: The general concept or system of protecting bank deposits, which the FDIC administers in the United States.
  • Deposit insurance is a key component of modern banking.

Synonyms

• Deposit insurer: An entity that provides deposit insurance.
• Federal insurer (of deposits): A descriptive term highlighting its governmental role.

Related Terms and Concepts

• Bank failure: The event against which the FDIC provides protection.
  • The FDIC manages the process when a bank failure occurs.
• Standard insurance amount: The maximum deposit amount insured per depositor, per insured bank, for each account ownership category.
  • The standard insurance amount is $250,000.

Noun

1. a federally sponsored corporation that insures accounts in national banks and other qualified institutions