A more thorough explanation:

Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects the money you deposit in banks and thrift institutions. It does this by insuring your accounts up to $100,000, examining banks that are not members of the Federal Reserve System, and closing down failed institutions.

Let's say you have a savings account with a balance of $50,000 at a bank that is insured by the FDIC. If the bank were to fail, the FDIC would step in and reimburse you for your lost funds up to $50,000. This means that even if the bank goes bankrupt, you won't lose your money.

Another example is if you have a checking account with a balance of $150,000 at a bank that is insured by the FDIC. In this case, only $100,000 of your funds would be insured, and you would be at risk of losing the remaining $50,000 if the bank were to fail.

These examples illustrate how the FDIC protects your money in case of a bank failure. By insuring your accounts up to a certain amount, the FDIC ensures that you won't lose your hard-earned money if your bank goes bankrupt.