FDIC Insurance and Its Evolution

FDIC insurance was established to protect depositors from losses incurred when banks fail, relieving the need for individuals to assess a bank's safety. Historically, the government's involvement created a safety net for depositors, yet recent developments have revealed a troubling shift as newer depository institutions emerged that operate outside of FDIC insurance. This has led to confusion regarding the security of funds held in accounts with various fintech companies like Apple Pay or Cash App, which may not have the same protections as traditional banks. The responsibility has shifted back to consumers, who are now left to navigate complex structures to determine whether their money is adequately insured.