The FDIC is a US government agency that provides deposit insurance to depositors in American banks. It guarantees deposits up to $250,000 per depositor, per bank, per ownership category.

FDIC insurance protects your deposits if a bank fails. Most checking accounts, savings accounts, CDs, and money market accounts at FDIC-insured banks are covered. You can verify if your bank is FDIC-insured on the FDIC website. It works alongside regulators like the OCC. Official site: FDIC.