FDIC insurance covers up to $250,000 on individual deposit accounts in the event that the bank fails. That’s why many people prefer to keep their bank account balances under $250,000 .

That means federal deposit insurance will protect your money if the bank fails. Here's how it works and what it does -- and doesn't -- cover. What is FDIC insurance?

The Federal Deposit Insurance Corporation (FDIC) ensures the safety of cash deposited in insured banks, providing a protection of up to $250,000 per account in the case of a bank failure.

Project 2025 does not call for the elimination of the Federal Deposit Insurance Corporation. Instead, it proposes merging the FDIC with other banking agencies. Skip Navigation.

The Federal Deposit Insurance Corporation (FDIC) was created during the Great Depression to restore trust in a financial system shaken by the failure of thousands of banks.

Project 2025 proposes merging the FDIC with other federal banking agencies, but it’s unclear how that merger would affect government-backed deposit insurance.

Project 2025 proposes merging the FDIC with other federal banking agencies, but it’s unclear how that merger would affect government-backed deposit insurance.

Project 2025 proposes merging the FDIC with other federal banking agencies, but it’s unclear how that merger would affect government-backed deposit insurance.

The Federal Deposit Insurance Corporation (FDIC) seal is shown outside its headquarters, on Tuesday, March 14, 2023. (AP Photo/Manuel Balce Ceneta) Author: Erin Jones Published: 6:22 PM EDT July 17, ...