A Federal corporation that supply deposit insurance to depositors in commercial and savings banks. This was established by the Banking Act of 1933. FDIC does not apply to credit unions which is covered by National Credit Union Administration.
FDIC covers:
- Checking accounts
- Negotiable Order of Withdrawal (NOW) accounts
- Savings accounts
- Money Market Deposit Accounts (MMDAs)
- Time deposits such as certificates of deposit (CDs)
- Cashier's checks, money orders, and other official items issued by a bank
The present limit is $250,000 per depositor, per institution for each account.
FDIC is not funded using public money. It gets the majority of its funding through member banks' insurance dues.