The best reason to make sure your bank is FDIC insured is that FDIC insurance protects your deposits if the bank fails, ensuring you won't lose your money up to the insured limit (typically $250,000 per depositor, per institution, per ownership category). The FDIC is backed by the full faith and credit of the U.S. government, so your insured deposits are safe even if the bank collapses. This insurance promotes confidence and security in the banking system by guaranteeing depositors will be made whole up to those limits.
