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Fortune
Fortune
Kevin L. Matthews II

What is FDIC insurance and how does it protect you?

Photo illustration of a crumbling foundation of a bank building surrounded by columns that have fallen down; sitting on the foundation is a pile of money shielded by a gold umbrella. (Credit: Photo illustration by Fortune; Original photos by Getty Images (3))

Whether it’s your paycheck or a tax refund, you want to feel safe when you deposit money in your bank account. But with all the talk of bank failures during 2023, how safe are banks—and what happens if yours fails?

Here’s the good news: In the improbable event of that happening, the Federal Deposit Insurance Corporation (FDIC) has your back. 

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