History

• In response to widespread bank failures during the Great Depression, the U.S. Congress established the FDIC in 1933 to boost public confidence in banks. It monitors the soundness of banks and insures certain deposits, such as those in savings and checking accounts (up to $250,000 per depositor, through December 31, 2013).
  
  

Money Market Deposit Accounts

• A money market deposit account is a type of savings account. Banks use these deposits to invest in money market securities issued by the U.S. government, corporations and local government. The FDIC insures money market deposit accounts.
  
  

Money Market Funds

• Money market funds are a type of mutual fund that pools investors' funds to buy money market securities. The FDIC does not insure stocks, bonds or investments in mutual funds, including money market funds.
  
  

Treasury Guaranty Program

• On September 19, 2008, the U.S. Treasury launched its Guaranty Program for Money Market Funds, which temporarily insured money market fund shares. The Treasury Department established the program to stabilize financial markets during a severe banking crisis.
  
  

Treasury Guaranty Ends

• The Guaranty Program for Money Market Funds expired on September 18, 2009.