Skip Header
U.S. flag

An official website of the United States government

Learning Bank - Deposit Insurance

The FDIC's biggest job is insuring the savings of millions of Americans in all the FDIC insured banks across the country, even the savings of kids and teens.

When a bank has a sign on it that says "Insured by FDIC," it means that if the bank doesn't have enough money to pay back the people it owes money to, including the bank's depositors, and is closed, the FDIC will make sure all of the depositors get their money, up to the insurance limit of $250,000.

FDIC teller sign

America's Great Depression of the late 1920s and early 1930s caused many financial problems. Thousands of banks failed between the stock market crash of October 1929 and March of 1933. Many people who had money in banks lost some or all of it when their banks failed.

President Franklin Roosevelt signing a bill

In response to the crisis, President Franklin D. Roosevelt and Congress made several changes. In June of 1933, the FDIC was created to provide a federal government guarantee of deposits. The guarantee says a person's money, within certain limits, would be safe. Since the start of FDIC insurance, no one has lost a penny of insured money because of a bank failure.

Having the FDIC insure the money you deposit in the bank gives you confidence that your money is safe.

You can read more about the FDIC and how the federal government protects depositors by visiting the FDIC website at