The FDIC insures up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) is the government agency that insures money you keep in a bank account. If your bank fails, the FDIC pays you back up to $250,000 per account category at that bank. This limit has been $250,000 since 2008 and applies to each separate bank you use — so $250,000 at Bank A and $250,000 at Bank B are both fully insured.

The $250,000 limit covers the total of your deposits in one account category at one bank. If you have $300,000 in a checking account at the same bank, the FDIC covers $250,000 and you lose $50,000. The coverage is automatic — you do not need to sign up or register. As long as your bank is FDIC-insured (nearly all banks are), your money is protected from the moment you deposit it.

The FDIC does not insure money in stocks, bonds, mutual funds, or cryptocurrency, even if you buy them through your bank's website. It also does not cover safe deposit boxes or their contents. Coverage applies only to deposits — money sitting in checking, savings, money market, and certificate of deposit (CD) accounts.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor per bank in each account category, and this limit has not changed since 2008.
  • You can have $250,000 insured at multiple banks at the same time, so splitting your money across banks increases your total coverage.
  • Joint accounts, retirement accounts, and trust accounts each have their own $250,000 limit separate from your individual account at the same bank.
  • The FDIC does not cover investments like stocks or mutual funds, only deposit accounts like checking and savings.
  • You can check whether your bank is FDIC-insured by searching the FDIC's Bank Find tool on their website.

How the $250,000 limit works across different account types

The FDIC separates your accounts into categories, and each category gets its own $250,000 of coverage at the same bank. This means you can have more than $250,000 insured at one bank if your money is in different account types.

Your individual account (money in your name alone) is one category with $250,000 coverage. A joint account (money you own with another person) is a separate category, also with $250,000 coverage. A retirement account like a traditional IRA or Roth IRA is another separate category with $250,000 coverage. A trust account (money held in trust for someone else) gets its own $250,000. A payable-on-death account (where you name a beneficiary to receive the money if you die) is also separate, with $250,000 per beneficiary you name.

Example: You have $200,000 in a checking account in your name, $150,000 in a joint savings account with your spouse, and $100,000 in a traditional IRA at the same bank. All three are fully insured because they are in different categories. But if you move $100,000 from the joint account to another joint account at the same bank, both joint accounts together are only insured up to $250,000 total.

What happens when you have more than $250,000 at one bank

If your total deposits in one account category exceed $250,000 at a single bank, only $250,000 is insured. The rest is uninsured and at risk if the bank fails. The FDIC does not automatically move your excess money to coverage or warn you — it is your responsibility to keep track.

The simplest way to protect money over $250,000 is to split it across multiple banks. Open an account at a second bank and move the excess there. Each bank's $250,000 limit is separate, so $250,000 at Bank A and $250,000 at Bank B are both fully covered. You can do this with as many banks as you need.

Some people use sweep accounts or deposit networks offered by banks or brokerages. These services automatically move your money across multiple FDIC-insured banks to keep each account under $250,000. Ask your bank whether they offer this service — it is usually free, though some charge a small fee.

FDIC coverage for retirement and trust accounts

Retirement accounts like IRAs, SEP-IRAs, and SIMPLE IRAs are insured separately from your regular checking or savings account, even at the same bank. Each retirement account gets its own $250,000 of coverage. If you have a traditional IRA with $250,000 and a Roth IRA with $250,000 at the same bank, both are fully insured.

Trust accounts are insured based on the number of unique beneficiaries you name. If you set up a trust account naming your two children as beneficiaries, the account is insured up to $250,000 per child — so $500,000 total. If you name three beneficiaries, you get $750,000 of coverage. The FDIC counts only beneficiaries you actually name in the trust document, not potential heirs.

Payable-on-death (POD) accounts work similarly. If you name one person as the POD beneficiary, that account is insured up to $250,000. If you name two people, you get $250,000 per person. This is different from a joint account, where both owners share one $250,000 limit.

How to verify your bank is FDIC-insured

Nearly all banks are FDIC-insured, but a small number are not. Credit unions, for example, are insured by the National Credit Union Administration (NCUA), not the FDIC, though the coverage limit is the same: $250,000 per account category.

To check whether your bank is FDIC-insured, visit the FDIC's Bank Find tool on their website. Search by your bank's name or your city. The tool shows you the bank's official name, whether it is insured, and which FDIC region covers it. If your bank does not appear in the search, it is not FDIC-insured, and you should move your money to an insured bank.

Your bank statement or account agreement may also state that deposits are FDIC-insured. If you are unsure, call your bank's customer service and ask directly whether they are FDIC-insured.

What the FDIC does not cover

The FDIC covers only deposits — money sitting in accounts. It does not cover investments you buy through your bank, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), or cryptocurrency. Even if you purchase these through your bank's website or with a bank employee's help, they are not FDIC-insured.

Safe deposit boxes and their contents are not insured by the FDIC. If you store jewelry, documents, or cash in a safe deposit box and the bank fails, you lose what is inside. Some people buy separate insurance for valuables in safe deposit boxes, but the bank does not provide this.

Money in accounts at banks that are not FDIC-insured is not covered. Money owed to you by the bank (such as a loan the bank took from you) is also not covered — only deposits you made are insured.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays you back up to $250,000 per account category. You do not need to file a claim or contact the FDIC — the agency identifies all depositors and sends payments automatically. In most cases, you receive your money within a few business days, though it can take longer if the bank's records are complicated.

The FDIC pays you the amount you had in the account on the day the bank closed, not the current market value. If you had $200,000 in a savings account earning interest, you receive $200,000 plus any interest earned up to the closing date.

Bank failures are rare in the United States. The FDIC has been insuring deposits since 1933, and the vast majority of banks remain open and solvent. The last major wave of bank failures was in 2008 and 2009 during the financial crisis.

Frequently Asked Questions

Can I get more than $250,000 insured at one bank?

Yes, if you use different account categories. A joint account, retirement account, trust account, and individual account at the same bank each get $250,000 of coverage. You can also use a payable-on-death account with multiple beneficiaries to increase coverage. But money in the same category at one bank is only insured up to $250,000 total.

If I have $300,000 in a savings account, how much does the FDIC cover?

The FDIC covers $250,000. The remaining $50,000 is uninsured. To protect the full amount, move $50,000 or more to a savings account at a different FDIC-insured bank.

Does the FDIC cover money in a money market account?

Yes, money market accounts are treated as deposit accounts and are covered up to $250,000 per account category at each bank, the same as checking or savings accounts.

What if I have accounts at two branches of the same bank?

Branches of the same bank are treated as one bank for FDIC purposes. Money in a checking account at Branch A and a savings account at Branch B of the same bank are combined and insured up to $250,000 total (unless they are in different categories, like one individual and one joint).

Are online banks FDIC-insured?

Most online banks are FDIC-insured. Check the bank's website or use the FDIC's Bank Find tool to confirm. Online banks often offer higher interest rates on savings accounts while still providing the same $250,000 FDIC coverage as traditional banks.