Which agency insures deposits?

• A. Federal Deposit Insurance Corporation (FDIC)
• B. Federal Reserve System (Fed)
• C. Office of the Comptroller of the Currency (OCC)
• D. National Credit Union Administration (NCUA)

Answer: (A)

Deposits are insured by the Federal Deposit Insurance Corporation. The FDIC protects funds held in most banks and savings institutions in the United States, typically up to $250,000 per depositor per insured bank. This coverage means that if a bank fails, insured deposits are paid back to the owner up to the limit, helping maintain public confidence in the banking system. The FDIC’s focus is on traditional deposits like checking accounts, savings accounts, money market accounts, and certificates of deposit.

The Federal Reserve System is the central bank that conducts monetary policy and oversees the payment system; it does not insure deposits. The Office of the Comptroller of the Currency charters and supervises national banks, and the National Credit Union Administration insures deposits at credit unions, not banks.