Which federal agency insures deposits made at banks?

The Federal Deposit Insurance Corporation (FDIC) is the federal agency responsible for insuring deposits made at banks. Established in 1933 in response to the thousands of bank failures in the 1920s and early 1930s, the FDIC protects depositors by ensuring that even if a bank fails, the insured deposits are guaranteed up to a certain limit, which is currently $250,000 per depositor per insured bank. This insurance is critical for maintaining public confidence in the banking system, encouraging individuals to deposit their money in banks rather than keep it at home or invest it elsewhere.

The other agencies mentioned have distinct roles: the Federal Reserve primarily manages the nation's monetary policy and regulates financial institutions, the Securities and Exchange Commission oversees securities markets, and the Office of the Comptroller of the Currency regulates and supervises national banks. Therefore, while these agencies play essential roles in the financial system, it is the FDIC that specifically focuses on the insurance of bank deposits.