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What is the FDIC? Safeguarding Your Money in the Banking System

The article from MSN discusses the role of the Federal Deposit Insurance Corporation (FDIC) in safeguarding depositors' money within the U.S. banking system. Established in 1933 following the Great Depression, the FDIC insures deposits in banks and thrift institutions for up to $250,000 per depositor, per insured bank, for each account ownership category. This insurance covers various types of deposit accounts like checking, savings, money market deposit accounts, and certificates of deposit (CDs). The FDIC's primary goal is to maintain stability and public confidence in the nation's financial system by preventing bank runs and ensuring that depositors do not lose their money if a bank fails. The article also explains how the FDIC is funded through premiums paid by banks and from earnings on investments in U.S. Treasury securities, not from taxpayer dollars. It further outlines what happens when a bank fails, detailing the FDIC's process of either selling the failed bank to a healthy one or paying depositors directly up to the insured limit.

Read the Full Insider Article at:
[ https://www.msn.com/en-us/money/personalfinance/what-is-the-fdic-safeguarding-your-money-in-the-banking-system/ar-BB1qvxuD ]