FDIC. A federal agency that insures deposits in member banks and thrifts up to $100,000. In 2008, a temporary increase was made to raise the level to $250,000, in response to the financial crisis at that time, and this increase expires at the end of 2009 (with the exception of some retirement accounts). The idea for the FDIC dates back to the Great Depression, a time when many individuals did not have trust that their money would be safe in the banking institutions, and the agency was founded in 1933.