You may have seen or heard the term “FDIC insured” when doing your banking or perhaps in an advertisement. If you’ve ever wondered what it means and why you should care, read on.
The FDIC was formed during The Great Depression in 1933 after several bank failures caused people to lose all the money in their savings accounts.
That’s why one of the most important things to know is that the FDIC provides deposit insurance. If your bank fails or goes out of business, your deposits are insured, and the FDIC will refund your money.
According to the organization, “FDIC insurance is backed by the full faith and credit of the U.S. government.” Since the FDIC began insuring bank deposits, no one has lost any insured money because of a bank failure.