What does FDIC stand for?

FDIC is an acronym for Federal Deposit Insurance Corporation. The FDIC is a government agency, with a sole purpose to protect banking consumers by keeping the banking industry safe.

Bank customers deposit money into a bank account that is protected by the FDIC, and the money is safe even if the bank goes out of business. The FDIC can intervene to ensure the consumers money is protected, by transferring it to a different bank.

To have the ability to offer FDIC insured bank accounts, the bank must pay insurance premiums to cover the customers' account balances. To ensure that the money is secure, customers must verify that the accounts are FDIC insured and know the applicable limits of the coverage.