Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of checking and savings deposits in member banks, currently up to $250,000 per depositor per bank. Insured deposits are backed by the full faith and credit of the United States.[2] On January 1, 2010[9], the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner. The vast number of bank failures caused by runs on the bank in the Great Depression spurred the United States Congress to create an institution to guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund (DIF).[3] The FDIC insures accounts at different banks separately.
