The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the federal government that was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s.
The FDIC insures deposits in U.S. banks up to $250,000 per depositor as long as the institution is a member firm.
In the event of multiple bank failures at once, each depositor is insured up to $250,000 per bank.