Fdic (Noun)
Meaning
A federally sponsored corporation that insures accounts in national banks and other qualified institutions.
Classification
Nouns denoting groupings of people or objects.
Examples
- The FDIC insurance program guarantees the security of deposit accounts in banks, helping to prevent runs and maintain financial stability.
- By purchasing an account in a bank with FDIC insurance, individuals and businesses can feel more secure knowing that their funds are protected up to $250,000.
- Because her deposits exceeded the maximum insurance amount covered by the FDIC, Rachel made the strategic decision to open an account with multiple co-signers, essentially doubling her coverage.
- All national banks and federal savings associations must carry FDIC insurance to protect the deposits of their customers.
- As part of her financial planning, Maria investigates the banking institution's financial health before investing to make sure it carries FDIC insurance.