The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the federal government. It provides insure on the deposits of all national and state banks that are members of the Federal Reserve System. The FDIC preserves and promotes public confidence in the U.S. financial system by:
- insuring deposits in banks (keeping the money you have in the banks safe);
- managing the deposit insurance funds;
- and limiting the effect on the economy and the financial system when a bank fails.