The Federal Deposit Insurance Corporation, insures deposits in savings and banking institutions. When depositing funds with an FDIC-insured institution, your deposits are covered up to $100,000.

The FDIC was created during the financial chaos of the Great Depression. The stock market crash in October of 1929, and the subsequent crash in March of 1933, prompted the U.S. Government to create a federally-backed corporation that would provide stability and reassurance to the public. And on January 1, 1934, the FDIC was created.

The FDIC typically does not need taxpayer funding to do its job of banking oversight. Instead, the FDIC charges deposit insurance premiums, which are paid by members. Savings and CDs, when combined, are generally insured up to $100,000 per depositor in each financial institution insured by the FDIC. Deposits held in different ownership categories, such as single or joint accounts, may be separately insured.

In late 2008, as part of sweeping emergency action taken to stabliize the banking system, Congress temporarily increased the amount of FDIC coverage from $100,000 to $250,000 per depositor. TThis increased coverage limit applies to most personal and corporate accounts, and is set to expire on December 31, 2009. This coverage also applies to IOLTA (commonly referred to as "trust accounts") used by attorneys and other professionals on behalf of clients.

In addition to insuring deposits on S&Ls and institutions, the FDIC also steps in when an institution fails. The FDIC resolves financial deficits as quickly as possible, and works with member institutions to insure sufficient reserves are available for depositors.

Since its creation in 1934, not a single depositor has lost a cent of insured funds as a result of a failure. The FDIC has been there to serve and protect the banking industry during volatile and uncertain times.

ING DIRECT is a member of the FDIC, certificate number 35489.

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Federal Deposit Insurance Corporation