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When people in the U.S. put money in the bank, they know it’s safe. In fact, not a single U.S. person has lost a penny of insured bank deposits since 1933. That’s when the government put in safeguards following the worldwide economic downturn of the Great Depression.Here are three ways Americans know their money is safe:Anyone opening a bank account in the U.S. can look for a logo that says “FDIC,” which stands for the Federal Deposit Insurance Corporation. The logo indicates that the institution is affiliated with the FDIC, and that means the money a person puts in checking, savings and other accounts is insured by the full faith and credit of the U.S. government.In the unlikely event of a bank failure, the FDIC guarantees that people get back their savings up to a certain limit. Today, this limit is $250,000 for a single account.Banks also use high-tech fraud detection systems — to prevent hackers from draining accounts with fraudulent transactions.“Something as basic as an insured deposit account gives households the ability to safely deposit income,” Martin Gruenberg, chairman of the FDIC, said in 2017. “I think that’s something we take for granted, but security of savings is not a small thing.”In some countries, banks are much more opaque. In Iran, for example, people depositing money can sometimes fall victim to bankers’ corruption and speculation. Unregulated lenders have stolen or mismanaged millions of Iranian families’ savings.
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