What does FDIC mean?

March 22, 2023

We’ve all heard the term FDIC, but what does it mean and how does it keep your money safe? We’ve got the definition and answers to questions you might have. 

FDIC stands for the Federal Deposit Insurance Corporation and its goal is to help “maintain stability and confidence in the nation’s financial system.” Since it was created in 1933, “no depositor has lost a penny of insured funds as a result of a failure.”1

The federal government created the agency following the 1929 stock market crash and subsequent bank failures. Even though it was created by the government, it is an independent agency that is funded by banks and savings and loan associations through their insurance premiums. It is backed by the full faith and credit of the United States government. With FDIC in place, banks are mostly very safe places to keep your money. 

Almost every bank in the nation is FDIC insured. U.S Bank is a member of the FDIC.

To find out if your bank is FDIC insured, you can ask a bank representative, look for the FDIC sign at your branch, call the FDIC at 877-275-3342, or you can use the FDIC's BankFind search.

What does FDIC do?

The primary role of the FDIC is to insure deposits up to $250,000 per depositor, per insured bank for each ownership category. 

What types of accounts are insured? 

  • Checking accounts 
  • Savings accounts  
  • Money Market Deposit Accounts (MMDAs)  
  • Time deposits such as certificates of deposit (CDs)  
  • Cashier’s checks, money orders, and other official items issued by a bank 
  • Negotiable Order of Withdrawal (NOW) accounts 

What types of accounts aren't insured? 

  • Stock investments  
  • Bond investments  
  • Mutual funds  
  • Life insurance policies  
  • Annuities  
  • Municipal securities  
  • Safe deposit boxes or their contents  
  • U.S. Treasury bills, bonds or note 

Do I need to apply for FDIC?

No. Coverage is automatic when you open a deposit account at an FDIC member institution. 

What happens if my bank fails?

If your bank is a member of FDIC, your money will be refunded dollar for dollar plus any interest earned up to the date of the default, up to the limit. 

The FDIC also takes control of the failed bank’s assets and settles its debts, including claims for deposits in excess of the insured limit.  

I have deposits at U.S. Bank and Union Bank, is only one of those accounts insured? 

There are special rules for when banks merge. In the case of U.S. Bank and Union Bank, the deposits will continue to be insured separately for at least six months after the merger. CDs from the assumed bank continue to be insured separately until the earliest maturity date that falls six months after the merger. Find out more about how your deposits are insured following the merger of U.S. Bank and Union Bank.  For information in other languages visit fdic.gov.

Looking to explore your deposit options? Consider opening an account with U.S. Bank.  

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Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.