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You Are Here: What is FDIC insurance and what does it mean for my accounts?
What is FDIC insurance and what does it mean for my accounts?
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000* per depositor per bank. The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages failed banks. Insured institutions (like Range Bank) are required to place signs at their place of business stating that "deposits are backed by the full faith and credit of the United States Government" and since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure.
*As an interesting side note, with Range Bank's CDARS program, customers can obtain multi-million dollar FDIC insurance protection, making it possible to insure funds beyond the typical FDIC limits.