What is FDIC insurance?

FDIC insurance is a type of insurance that provides protection for customers of banks and certain other financial institutions in the event of the institution becoming insolvent or failing. FDIC, which stands for the Federal Deposit Insurance Corporation, is an independent agency of the United States government that was created in 1933 in response to the Great Depression. FDIC insurance protects customers’ deposits if a bank fails and is in place to make sure that customers do not lose their money in the event of a bank failure. In the state of Nebraska, the FDIC provides up to $250,000 of insurance per depositor, per account type, in the event of a bank failure. This insurance covers all types of deposits, including checking, savings, money market, and certificates of deposit (CDs). The FDIC also covers other forms of deposits such as cashier’s checks, money orders, and certain withdrawals from interest-bearing accounts at some credit unions and banks. FDIC insurance helps to maintain customer confidence in the banking system by ensuring that customers’ deposits are protected even if the bank fails. It also helps to protect customers’ money by discouraging fraud and unethical practices by banks and other financial institutions. By utilizing FDIC insurance, customers can be confident that their money is safe and secure in the event of a bank failure.

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What is FDIC insurance?

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