A savings account at a bank is guaranteed by which of the following entities?

A savings account at a bank is guaranteed by the FDIC, which stands for the Federal Deposit Insurance Corporation. This agency was created to maintain public confidence in the nation's financial system by protecting depositors against the loss of their insured deposits if an FDIC-insured bank fails. The FDIC insures each depositor up to the standard insurance amount, which is currently $250,000 per depositor, per insured bank, for each account ownership category.

This protection is crucial for individuals because it ensures that even if a bank experiences financial difficulties or goes bankrupt, the depositors will not lose their money, up to the insured limit. This insurance contributes to the stability of the banking system and encourages consumers to save money in banks without fear of losing their deposits.

While the Federal Reserve plays a critical role in monetary policy and overseeing banks' practices, it does not guarantee individual deposit accounts. The Treasury Department manages federal finances and oversees government borrowing but does not provide guarantees for bank deposits. The National Credit Union Administration (NCUA) similarly protects deposits in credit unions, but it is specifically for accounts held at credit unions, not traditional banks. Therefore, the FDIC is the correct entity that guarantees savings accounts at banks.