The Federal Deposit Insurance Corporation (FDIC) protects and insures which below account?

The Federal Deposit Insurance Corporation (FDIC) provides protection and insurance primarily for deposit accounts held in member banks, which includes checking and savings accounts. This insurance protects deposits up to a specified limit—currently $250,000 per depositor, per insured bank, for each account ownership category. The goal of the FDIC is to maintain public confidence in the U.S. financial system by ensuring that depositors do not lose their insured deposits in the event of a bank failure.

Checking and savings accounts are structured as deposit accounts, thereby falling under the FDIC's insurance umbrella. This coverage is crucial for individuals who rely on these accounts for everyday banking and savings, ensuring that their funds are secure.

In contrast, credit card balances, stocks, bonds, and retirement accounts do not have the same type of insurance from the FDIC. Credit card balances represent borrowing rather than deposits; stocks and bonds are investments that carry market risk and aren't insured by the FDIC; while retirement accounts, such as IRAs and 401(k)s, have their own regulations and protections but are typically not covered under FDIC insurance. Thus, the correct focus on checking and savings accounts highlights the types of accounts that the FDIC is designed to protect.