FDIC insurance is a government protection that guarantees your deposits at a bank up to $250,000 per account. If the bank fails, the FDIC will reimburse you for your money. This insurance applies to checking accounts, savings accounts, and certain other deposits.
You keep $200,000 in a savings account at a bank that goes out of business. The FDIC insurance covers your full $200,000, and you get your money back. However, if you had $300,000 in that same account, only $250,000 would be protected.
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