Which agency insures funds on deposit at member banks?

The Federal Deposit Insurance Corporation (FDIC) is the agency responsible for insuring funds on deposit at member banks. Established in 1933 in response to thousands of bank failures, its primary purpose is to maintain public confidence in the financial system by protecting depositors. The FDIC insures deposits in most commercial banks and savings institutions, making sure that individuals' deposits are safe, even if the bank were to fail. This insurance covers a range of accounts, including savings accounts, checking accounts, and certificates of deposit, up to a limit that is adjusted periodically.

The other agencies listed serve different purposes. The National Credit Union Administration oversees and insures savings in federal and state-chartered credit unions, not banks. The Federal Reserve System acts as the central bank of the United States and focuses on monetary policy, interest rates, and bank regulation but does not insure deposits. The Office of the Comptroller of the Currency regulates and supervises national banks and federal savings associations but also does not provide deposit insurance. Thus, the FDIC is specifically tasked with deposit insurance, making it the correct choice in this context.