The Federal Deposit Insurance Corporation (FDIC) was created in 1933 in response to the bank failures that occurred during the Great Depression. At the time, many banks were failing, and people were losing their life savings as a result. The FDIC was created to provide insurance for bank deposits, so that if a bank failed, depositors would be protected and would not lose their money. Today, the FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category!