What Is the Federal Deposit Insurance Corp. (FDIC)?The Federal Deposit Insurance Corp. (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.1 As of 2023, the FDIC insures deposits up to $250,000 per depositor as long as the institution is a member firm. It is critical for consum...