Fdic Money Banks U.S Members Deposits Pay Full

The "Federal Deposit Insurance Corporation" ("FDIC") is a U.S. government "corporation" (business) that "insures" (provides financial protection for) individuals' "deposits" (the amount of money that one has put into an account) in bank accounts. Banks that are members of the FDIC can say that their customers' accounts are insured for up to $250,000. "In other words" (to explain things in another way), an individual can "rest assured" (not worry), knowing that he or she will always have access to his or her deposits of up to $250,000-even if the bank "goes under" (goes out of business and closes)-because the FDIC will "repay" (pay back) any lost money.

Banks that are members of the FDIC have signs with the following words:

Deposits are "backed" (insured) by the full "faith and credit" (a phrase describing a government's full commitment to doing something) of the United States Government.

In addition to insuring deposits, the FDIC also works closely with its member banks. The FDIC "examines" (inspects) banks to make sure they are following all the rules and managing money in "prudent" (responsible, conservative, and safe) ways while considering "consumer protection" (efforts to give customers reassurance, power, and safety when interacting with large businesses).

The FDIC was created by the Banking Act of 1933. It operates on funds or money received from member banks and from the "proceeds" (money received) from its investments, but it does not receive any money from the U.S. government. "To date" (so far), it has always "met its obligations" (been able to "cover" (pay for) deposits) when banks have "failed" (gone out of business).