federal deposit insurance corporation means: Federal institution which insures bank depositors. (in Stock Market Dictionary)
What else does federal deposit insurance corporation mean?
- Federal Deposit Insurance Corporation FDIC, a U.S. government agency that protects deposits at all U.S. banks. FDIC covers 250,000 deposits per individual for accounts held at more than 5,000 banks. The FDIC insures deposits so that they are protected in case their bank goes under. This helps to reduce the risk of financial crisis bank runs. FDIC insurance covers multiple types of accounts. This includes single and joint accounts as well as retirement accounts. Each type of account can be covered up to 250,000 by an individual. An individual could have 750,000 FDIC insured deposits if they had three accounts: a savings, trust, and retirement. A person may have insurance accounts at different banks, provided they are not owned by the same bank. If an individual had both a savings and retirement account at different banks, then they’d have one million insured deposits. (in Legal Dictionary)
- Banks may be required to meet certain capital and investment requirements by the FDIC in order to insure their deposits. The FDIC can ensure bank deposits are returned to banks and that creditors receive what is salvageable from bank assets. With the power to merge and sell assets, the FDIC can also control how assets are paid to creditors. The FDIC charges a premium to banks for insurance of their deposit accounts. This premium varies depending on how many bank accounts the bank has and the capitalization. (in Legal Dictionary)
