The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that provides deposit insurance to protect depositors in the event of a bank failure. It currently insures deposits up to $250,000 per depositor, per insured bank.
Example
“When Silicon Valley Bank collapsed, depositors with balances under $250,000 were protected by the FDIC, while those with larger deposits faced uncertainty until the government extended emergency coverage.”