Yes, most Bank of America deposit accounts are insured by the FDIC up to $250,000 per depositor, per account category, per bank

Bank of America is an FDIC-insured bank, which means the Federal Deposit Insurance Corporation protects your money if the bank fails. The standard coverage limit is $250,000 per person per account category. If you have $250,000 or less in a single checking account at Bank of America, that money is fully protected. If you have more than $250,000 in one account, the amount above $250,000 is not covered.

The key word is "per account category." This means you can have multiple accounts at Bank of America and each one gets its own $250,000 protection, but only if they are in different categories. A checking account and a savings account are different categories, so you could have $250,000 in checking and $250,000 in savings, and both would be fully insured. A second checking account is still a checking account, so two checking accounts at the same bank share one $250,000 limit between them.

FDIC insurance covers the account balance as it stands on the day the bank fails. It does not cover investment losses, and it does not cover money in investment accounts or brokerage accounts held at Bank of America.

Key Takeaways

  • Bank of America deposits are insured by the FDIC up to $250,000 per depositor per account category, so a single checking account with more than $250,000 is only partially covered.
  • Different account categories—checking, savings, money market, and CDs—each get their own $250,000 limit, so you can protect more money by spreading it across account types.
  • Joint accounts are insured separately from individual accounts, so a joint checking account and an individual checking account at the same bank each have their own $250,000 protection.
  • Investment accounts, brokerage accounts, and mutual funds held at Bank of America are not covered by FDIC insurance and are protected under different rules.
  • FDIC insurance is automatic for all deposit accounts at Bank of America; you do not need to sign up or pay a fee.

How FDIC coverage works across different account types

The FDIC recognizes several account categories, and each one is insured separately. A single account (in your name alone) is one category. A joint account (shared with another person) is a separate category. A retirement account (IRA, SEP-IRA, or similar) is its own category with a $250,000 limit per person. A trust account is another category. This means if you have an individual checking account, a joint savings account, and an IRA, all at Bank of America, you have three separate $250,000 limits.

The FDIC does not count accounts at different banks toward the same limit. If you have $250,000 at Bank of America and $250,000 at Wells Fargo, both are fully insured because they are at different institutions. FDIC insurance is tied to the bank, not to you as a person.

Certificates of Deposit (CDs) at Bank of America are insured the same way as savings or checking accounts—up to $250,000 per category. If you have five CDs at Bank of America, all in your individual name, they are added together and share one $250,000 limit. If one CD matures and you move the money to a savings account, both are still counted toward your individual account category limit.

What FDIC insurance does not cover

FDIC insurance covers only deposit accounts: checking, savings, money market accounts, and CDs. It does not cover stocks, bonds, mutual funds, or any investment held in a brokerage account, even if that account is at Bank of America. If you buy stock through Bank of America's investment services and the bank fails, your stock is protected by different rules (SIPC insurance), not FDIC insurance.

FDIC insurance also does not cover safe deposit boxes or items stored in them. If you keep jewelry, documents, or other valuables in a Bank of America safe deposit box, those items are not insured by the FDIC. The bank may offer its own coverage, but you should check your safe deposit box agreement.

Losses from fraud, theft, or unauthorized transactions are not covered by FDIC insurance. If someone steals money from your account, you have rights under federal banking law to dispute the transaction, but FDIC insurance is not the mechanism that protects you. Your bank's fraud liability rules and your own reporting speed determine what happens.

What happens to your money if Bank of America fails

If Bank of America were to fail, the FDIC would step in and either arrange for another bank to take over Bank of America's deposits or pay depositors directly from the FDIC insurance fund. In most cases, the FDIC finds another bank to assume the deposits within one to three business days. You would keep your account at the new bank with the same balance, and you would have access to your money almost immediately.

If no bank takes over the deposits, the FDIC pays you directly. The payment process can take longer—sometimes weeks—but the FDIC has never failed to pay insured deposits in full. The FDIC maintains an insurance fund paid for by premiums that banks pay; it is not funded by taxpayers.

You do not need to do anything to activate FDIC insurance. It is automatic for all deposit accounts at any FDIC-insured bank, including Bank of America. You do not pay a fee, and you do not need to apply.

How to check your coverage and stay within limits

The FDIC provides a tool called the FDIC Coverage Calculator on its website (fdic.gov) where you can enter your Bank of America account details and see exactly how much of your money is insured. This tool accounts for all the different categories and helps you understand whether you are over the limit in any category.

If you have more than $250,000 in a single account category at Bank of America, you have three options: move the excess to a different account category at the same bank (if you want to keep using Bank of America), move the excess to a different bank, or accept that the excess is not insured. Many people with large balances spread their money across multiple banks to keep everything insured.

If you have a joint account, remember that the $250,000 limit applies to the account as a whole, not to each person. If you and your spouse have a joint checking account with $300,000, only $250,000 is insured. Each of you could also have an individual account at the same bank with another $250,000 insured in each, for a total of $550,000 insured across three accounts.

FDIC insurance for business and trust accounts

If you own a business and have a business checking or savings account at Bank of America, that account is insured separately from your personal accounts. A business account gets its own $250,000 limit. The account must be in the business's name, not your personal name, for this separate coverage to apply.

Trust accounts are also insured separately. If you are a trustee and hold money in a trust account at Bank of America, that account is insured up to $250,000 per beneficiary of the trust, not per trustee. This means a trust with three beneficiaries could have up to $750,000 insured in a trust account at Bank of America. The FDIC's Coverage Calculator can help you work through the details of trust coverage.

Frequently Asked Questions

If I have $300,000 in a Bank of America savings account, how much is insured?

Only $250,000 is insured. The remaining $50,000 is not covered by FDIC insurance. To protect the full $300,000, you could move $50,000 to a Bank of America checking account (a different category), or move $50,000 to a savings account at a different FDIC-insured bank.

Does FDIC insurance cover money I lose to a scam or fraud?

No. FDIC insurance protects your money only if the bank fails. If you are scammed or someone commits fraud on your account, you have rights under federal banking law to dispute the transaction, but FDIC insurance does not apply. Report fraud to Bank of America immediately and follow their dispute process.

If I have a checking account and a savings account at Bank of America, do they each get $250,000 coverage?

Yes. Checking and savings are different account categories, so each one is insured up to $250,000 separately. You could have $250,000 in checking and $250,000 in savings at the same Bank of America branch, and both would be fully insured.

Is my money insured if I keep it in a Bank of America money market account?

Yes, up to $250,000. Money market accounts are treated as a deposit account category and are insured the same way as savings accounts. If you have both a savings account and a money market account at Bank of America, they share one $250,000 limit because they are both savings-type accounts.

What if Bank of America is bought by another bank—do I still have FDIC insurance?

Yes. FDIC insurance follows the deposits, not the bank's name. If another bank acquires Bank of America, your deposits would be insured under the acquiring bank's FDIC coverage. In most cases, you would not notice any change to your account.