The Federal Deposit Insurance Company (FDIC) is a branch of the United States Treasury created by Congress in 1933 to protect the bank deposits of American consumers and restore consumer confidence in the banking system during the Great Depression. The FDIC receives its funding from more than 8,400 member banks, not from taxpayers.

In the event of a bank failure, bank customers with deposits in FDIC insured accounts (including most checking accounts, savings accounts, and certificates of deposit [CDs]), can recover the funds in their bank accounts from the FDIC up to FDIC insurance limits.

The FDIC raised insurance limits on October 3, 2008 in response to failures of several large banks like Washington Mutual and the ensuing economic crisis. The new FDIC insurance limits will be effect until December 31, 2008.

• Single deposit account (Checking, Savings, CD, etc.): $250,000 per depositor
• Joint deposit account (Checking, Savings, CD, etc.): $250,000 per co-owner ($500,000 total)
• Retirement account (IRA, etc.): $250,000 per depositor

This article is part of the series Banking 101.