The History of FDIC: Federal Deposit Insurance Corporation
The protection of the money we deposit in our bank accounts is something most of us take for granted today, but this
security has not always been there. After the stock market crash of 1929, thousands of banks failed. In 1933, Congress
and President Franklin D. Roosevelt created the Federal Deposit Insurance Corporation (FDIC) to provide federal government
guarantee of deposits and maintain stability and public confidence in the nation's banking systems. Today, the FDIC insures
deposits up to $100,000 per depositor, per bank, subject to certain conditions.
1933: Congress creates the FDIC.
1934: Deposit insurance coverage initially set at $2,500.00, then raised midyear to $5,000.
1950: Deposit insurance increased to $10,000; refunds established for banks to receive a credit for excess assessments
above operating and insurance losses.
1960: FDIC's insurance fund passes $2 billion.
1966: Deposit insurance increased to $15,000.00.
1969: Deposit insurance increased to $20,000.00.
1974: Deposit insurance increased to $40,000.00.
1980: Deposit insurance increased to $100,000.00; FDIC insurance fund is $11 billion.
1983: Deposit insurance refunds discontinued.
1987: Congress refinances Federal Savings and Loan Insurance Corp. fund rebuilt with more than $10 billion spread out over
1988: 200 FDIC-insured banks fail; FDIC loses money for the first time.
1989: Resolution Trust Corp. created to dissolve problem thrifts; OTS opens to oversee thrifts.
1990: First increase in FDIC insurance premiums from 8.3 cents to 12 cents per $100 of deposits.
1991: Insurance premiums hit 23 cents per $100 of deposits. FDICIA legislation increases FDIC borrowing capacity, least
cost-resolution is imposed, too-big-to-fail procedures are written into law and risk-based premium system is created.
1993: Banks begin paying premiums based on their risk.
1996: The Deposit Insurance Funds Act prevents the FDIC from assessing premiums against well-capitalized banks if the
deposit insurance funds exceed the 1.25% designated reserve ratio.
2006: Deposit insurance, as of April 1, for Individual Retirement Accounts (IRA) increased to $250,000.00. This is separate
from the regular $100,000.00 coverage of your other deposit accounts.
2008: The Emergency Economic Stabilization Act of 2008 was signed on October 3, 2008. This temporarily raises the basic
limit of federal deposit insurance coverage from $100,000.00 to $250,000.00 per depositor. The legislation provides that
the basic deposit insurance limit will return to $100,000.00 on December 31, 2009.
2009: The temporary increase in bank deposit insurance to $250,000.00 has been extended for four years, the Federal Deposit
Insurance Corporation announced in a letter to financial institutions on May 22, 2009. The standard maximum insured amount
was increased to $250,000.00 on October 3, 2008, but was set to return to $100,000.00 at the end of 2009. The temporary
increase has now been extended through 2013. The extension came by way of the Helping Families Save Their Homes Act, which
President Barack Obama signed into law May 20, 2009.
2010: FDIC announces that the $250,000 deposit insurance coverage level was permanently signed into law on July 21, 2010.
Important FDIC Notice Regarding Noninterest-Bearing Transaction Accounts