The FDIC and the Era of Trust (1930s–1950s) | Product categories |

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The FDIC and the Era of Trust (1930s–1950s)

The Great Depression (1929–1933) brought widespread bank failures and public fear over deposit security. In response, Congress created the Federal Deposit Insurance Corporation (FDIC) in 1933 under the Banking Act of 1933 (Glass-Steagall Act).
The FDIC insured customer deposits, restoring confidence in the banking system. This new assurance of safety led to an increase in commercial banking activity and the use of standardized deposit and coin bags across the country.
During this era, banks ordered custom-printed canvas bags marked with their institution’s name and city — symbols of renewed stability and professionalism. The heavy-duty drawstring bags with metal grommets, like the one from Farmers’ and Merchants’ Bank of New Oxford, PA, were typical of the period.
In 1934, the initial insurance limit was $2,500 per depositor, raised to $5,000 later that year.

It increased to $10,000 in 1950, $15,000 in 1966, and $20,000 in 1969.

By 1974, coverage grew to $40,000, then $100,000 in 1980, and finally $250,000 in 2008, where it remains today.