What Does the Federal Deposit Insurance Corporation (FDIC) Do? The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that insures deposits in commercial banks and savings institutions. The FDIC was created by the Banking Act of 1933 in response to the Great Depression, when many banks failed and people lost their savings. The FDIC's mission is to "maintain stability and public confidence in the nation's financial system." The FDIC insures deposits up to $250,000 per depositor, per insured bank, per ownership category. This means that if a bank fails, the FDIC will cover up to $250,000 of your money. The FDIC also provides a number of other services to banks, including: Examinations and supervision: The FDIC examines banks to ensure that they are safe and sound. The FDIC also supervises banks to make sure they are following the law and complying with regulations. Liquidation and receivership: If a ...