Which term refers to the government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor?

Which term refers to the government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor?

• A. Federal Deposit Insurance Corporation (FDIC)
• B. Direct Deposit
• C. Maintenance Fee
• D. Minimum Balance

Answer: (A)

The Federal Deposit Insurance Corporation (FDIC) is the government agency that insures customer deposits up to $250,000 per depositor per insured bank. This protection means if a bank fails, your eligible deposits are guaranteed up to that limit, giving you confidence that your money in covered accounts is safe. The coverage applies to typical deposit accounts like checking, savings, money market accounts, and certificates of deposit at insured banks. It does not cover investments such as stocks, bonds, mutual funds, or annuities. The limit is per depositor, per bank, and can vary with account ownership types (for example, separate coverage can apply for joint accounts). If a bank fails, the FDIC steps in to pay insured amounts or arrange a transfer of those deposits to another bank. The other terms listed refer to different banking concepts: direct deposit is how funds are paid into an account, a maintenance fee is a recurring charge, and a minimum balance is the required balance to avoid fees.

The Federal Deposit Insurance Corporation (FDIC) is the government agency that insures customer deposits up to $250,000 per depositor per insured bank. This protection means if a bank fails, your eligible deposits are guaranteed up to that limit, giving you confidence that your money in covered accounts is safe. The coverage applies to typical deposit accounts like checking, savings, money market accounts, and certificates of deposit at insured banks. It does not cover investments such as stocks, bonds, mutual funds, or annuities. The limit is per depositor, per bank, and can vary with account ownership types (for example, separate coverage can apply for joint accounts). If a bank fails, the FDIC steps in to pay insured amounts or arrange a transfer of those deposits to another bank. The other terms listed refer to different banking concepts: direct deposit is how funds are paid into an account, a maintenance fee is a recurring charge, and a minimum balance is the required balance to avoid fees.