Insurance of Deposits

Congress in 1933 established the Federal Deposit Insurance Corporation, which is funded by premiums paid by member institutions. If a customer holds an account at a bank that is a member institution of the FDIC, the customer’s accounts are insured for an aggregate total of $100,000. Banks that are member institutions are required to display prominently signs indicating that the bank is a member of the FDIC or a sign that states “Deposits Federally Insured to $100,000—Backed by the Full Faith and Credit of the United States Government.” This applies to many banks that are chartered either federally or by way of state statute.


Inside Insurance of Deposits