Which insurance protects deposits in the bank up to $250,000 in case the bank fails?

• A. Credit Card Insurance
• B. FDIC Insurance
• C. Liability Insurance
• D. Health Insurance

Answer: (B)

Deposit protection for bank deposits is designed to guard your funds if a bank fails. In the United States, this protection comes from FDIC Insurance, which covers most standard deposit accounts—checking, savings, money market accounts, and certificates of deposit—up to $250,000 for each depositor at each insured bank. This means your money is protected up to that limit even if the bank, unfortunately, shuts down. It’s important to note this protection applies to deposits, not to investments like stocks or bonds, and not to other types of insurance. The other options don’t fit because they cover different risks (credit card-related issues, liability claims, or health costs) and do not insure bank deposits.