The Federal Deposit Insurance Corporation (FDIC) The Federal Deposit Insurance Corporation (FDIC) in an independent agency of the United States Congress that was created in 1933 in a section of the Federal Reserve Act. It’s main propose is to insure banks in the event of bank failure. In 1950, a section of the act concerning the corporation was amended and makes a separate law, the Federal Deposit Insurance act. This act provides up to $100,000 insurance for each person who puts money into an insured bank. All the banks that are members in the Federal Reserve System automatically become insured by the corporat