Financial Industry Regulatory Authority (FINRA) Practice Exam 2025 - Free FINRA Practice Questions and Study Guide

A savings account at a bank is guaranteed by the Federal Deposit Insurance Corporation (FDIC). The FDIC is an independent agency of the federal government that provides insurance to depositors in banks and savings associations, which protects individuals' deposits up to a specific limit (currently $250,000 per depositor, per insured bank, for each account ownership category). This insurance coverage ensures that depositors do not lose their money in the event of a bank failure, making it a critical component of the banking system and a strong safeguard for consumers' savings.

Other entities mentioned serve different roles: the Securities Investor Protection Corporation (SIPC) protects customers of brokerage firms in case of financial failure, but does not insure bank deposits. The Federal Reserve (often referred to as the "Fed") primarily functions as the central bank of the United States and is responsible for monetary policy and regulating banks, rather than insuring deposit accounts. Similarly, the Department of the Treasury handles government finance and fiscal policy but does not provide deposit insurance. Thus, the FDIC is the correct and primary insurer for savings accounts in banks.