The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government corporation. FDIC was established after the collapse of many American banks during the early years of the Great Depression. It was created to insure bank deposits in eligible banks against loss in the case of a bank failure and to regulate certain banking practices.
The FDIC’s income comes from assessments on insured banks and from investments. The FDIC allowed insured bank deposits in qualified banks up to a specified maximum amount. The deposit insurance in 1934 was $5,000 per account. In 1980 the FDIC raised that amount to $100,000. The limit was later raised to $250,000.
Almost all incorporated commercial banks in the United States participate in the plan.
Source: Federal Deposit Insurance Corporation (FDIC)
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