How does FDIC Insurance Work?

The FDIC (Federal Deposit Insurance Corporation) is an independent agency that insures deposits in most banks and savings associations within the United States up to an amount of $250,000 per depositor per bank. This increased deposit limit will be in effect through December 31, 2013, as of January 1, 2014, the amount will return to the standard $100,000 for all except IRA accounts, which will remain at the $250,000 level. FDIC insurance is backed by the full faith and credit of the United States government.