What does the FDIC provide to depositors?

The Federal Deposit Insurance Corporation (FDIC) provides a federal guarantee of savings bank deposits, which is a key aspect of the agency's role in protecting depositors. This insurance assures consumers that their deposits in member banks are safe, up to a certain limit, even if the bank fails. The current standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

By ensuring that depositors can recover their money up to this insured amount, the FDIC helps maintain public confidence in the U.S. banking system. This protection does not extend to investments in stocks, bonds, or mutual funds, which is why the other options are not accurate. The FDIC's insurance specifically focuses on conventional deposits in savings accounts, checking accounts, and certificates of deposit, rather than loans or securities.