Federal Deposit Insurance Corporation shortened as FDIC is a government agency that is in charge of banking and consumer safety.
This type of insurance has a wide range of safety especially when things go wrong with your bank. You can easily get refunded when such happens which will prevent you from total loss.
This is an insurance company that is a bit backed by the the US government both on credits and faith as much as hope. This intends that it is highly safe to be with FDIC and at any point your bank goes wrong then they repay you and failure to do that then the US Treasury could act as a backstop and find the replacement.
From my research both on Google searches and from records nobody has talked about FDIC inability to repay lost funds on a bank failure.
According to thebalance.com FDIC gets involved if by any badluck your bank fails and they will facilitate a takeover by a stronger bank.
This failure of banks are mostly brief and uneventful for customers thus with FDIC your checks don’t bounce and you can go ahead with your transaction without any interruption.
Who is eligible for FDIC coverage
This is not a matter of your race, country or status. FDIC covers All depositors both businesses and every other entities. FDIC has been in existence for a very long time and is an insurance company for everybody which means you must not be an American citizen to get their coverage.