FDIC insurance amounts refer to the dollar limits set by the Federal Deposit Insurance Corporation (FDIC) on the amount of deposits that are insured at FDIC-member banks. These limits provide a safety net for depositors, ensuring that their funds are protected up to the specified amounts in the event of a bank failure.
FDIC insurance is important because it provides peace of mind to depositors, knowing that their money is safe and accessible. It also promotes stability in the financial system by encouraging people to keep their money in banks, which in turn helps banks to lend and invest in the economy. The FDIC was created in 1933 in response to the bank failures that occurred during the Great Depression. Since then, the FDIC has played a vital role in maintaining the stability of the U.S. financial system.