Federal Deposit Insurance Corporation (FDIC)
A US government agency that protects depositors by providing deposit insurance to banks and other financial institutions.
More Details
The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency that provides insurance for deposits in banks and savings institutions. The FDIC is backed by the full faith and credit of the U.S. government, which means that it has the resources of the federal government behind it to pay insured depositors in the event that an insured bank fails.
Example
Your previous bank failed and closed its doors—but you received $250,000 back, because your money was insured by the FDIC.
Related Terms
Cashier's Check
A type of check issued by a bank and guaranteed by the bank's funds. It is a safe and reliable form of payment for large transactions.
Collateral
Property or assets offered as security for a loan. If the borrower defaults, the lender can seize the collateral to recover the value of the loan.
Flexible Spending Account (FSA)
A tax-advantaged savings account that allows individuals to set aside money for qualified expenses.

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