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Throughout your time spent learning about finances, loans, and credit, you have read about agencies and sources that have been made available over the last 50 years to protect consumers in this country from unfair business practices, scams, and fraudsters. Even prior to that—in the 1930s—agencies were created to protect people from financial institutions that were either engaging in unlawful practices or had gone bankrupt (culminating in the 1929 Great Depression). Watch the video below to learn more about what certain agencies do to protect you and your money.
Do you have an account with a bank or some other financial institution?
Either way, for money to be added to your bank account—or anyone else's—it must be deposited first.
For example, suppose Drian just received a paycheck for $1,000. If he does not have his bank's app on his phone to allow him to make remote deposits, he can go to his bank, fill out a deposit slip, and deposit the money from the check into his account.
But how does Drian know that the money he just deposited will actually end up in his account? And how does he know his money will be secure if something should happen to the bank? In addition, what is keeping the bank from holding on to Drian's money instead of depositing it into his account?
The answer to these questions is the numerous government agencies and sources that have been created through the years and charged with protecting every citizen in the United States.
Agencies such as the Federal Deposit Insurance Corporation (FDIC), created in the 1930s, protects individuals like you and Drian from banks that fail, and from banks that use unfair or destructive business practices.
The FDIC, along with other agencies (which you will learn about), were created for the sole purpose of instilling confidence in all banks and other financial institutions across the country.
They do this by ensuring that all money deposited into your bank account will be safe and secure from any outside sources, including unfair business practices, fraudulent financial institutions, and banks that failed and have gone bankrupt.
In this lesson, you and Drian will learn all there is to know about the agencies and sources that have been created to help protect you, your fellow citizens, and all your hard-earned money.
Question
Are there government agencies that ensure your money is protected after it is deposited into your account within a financial institution?
Yes. There are a few government agencies (featured in this lesson) whose main purpose is to make sure your money is safe and protected after being deposited into your account.
