Which type of account guarantees the safety of funds up to a certain limit in the case of bank failure?

The type of account that guarantees the safety of funds up to a certain limit in the case of bank failure is one that is FDIC insured. The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects depositors by insuring deposits made at banks and savings associations. Each depositor is insured for up to $250,000 per insured bank, which means that in the event of a bank failure, customers can recover their insured deposits up to that amount. This insurance applies to most types of accounts offered by member banks, providing an essential safety net for individuals and businesses.

In contrast, while savings accounts, money market accounts, and checking accounts can all be FDIC insured, the answer specifically highlights the importance of the FDIC insurance itself as the protection mechanism, rather than just the account types. Each of these accounts could be FDIC insured depending on where they are held, but the key factor here is the guarantee provided by the FDIC. Thus, the focus on the FDIC insured account distinctly emphasizes the government-backed security that protects the funds deposited, solidifying its role as the correct answer in this context.