The Federal Deposit Insurance Corporation protects depositors of insured banks. Should a bank fail, the U.S. government cover your amount in the bank.
What is covered?
Essentially, cash and cash equivalents. Stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities are not insured.
What amount is covered?
$250,000 per depositor, per insured bank. That means you can have multiple accounts with $250,000 be insured as long as they are at different banks.