The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. The FDIC protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
The FDIC guarantees deposit accounts (checking, savings, money market savings and CDs) up to the maximum allowed by law. In October 2008, the FDIC increased insurance to $250,000 per depositor. The FDIC separately guarantees bank individual retirement accounts (IRAs) up to $250,000 per owner.