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

Federal Deposit Insurance Corporation (FDIC) coverage protects your money if the bank fails. The standard limit is $250,000 for each depositor at each bank. That means if you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose $50,000. The coverage applies to the bank itself, not the account type — so moving money between checking and savings at the same bank does not increase your protection.

The $250,000 limit has been in place since 2010. Before that, the limit was $100,000. If you have accounts at multiple banks, each bank's $250,000 limit is separate, so you can insure more money by spreading deposits across different institutions.

FDIC insurance is automatic — you do not have to sign up, pay a fee, or do anything to activate it. It covers deposits made in U.S. dollars at banks that display the FDIC logo or list membership on the FDIC website. Credit unions use a different system called the National Credit Union Administration (NCUA), which also covers up to $250,000 per member per institution.

Key Takeaways

  • The FDIC covers up to $250,000 per person per bank, and this limit applies to the total of all your deposits at that bank combined.
  • Money in different account categories — such as individual accounts, joint accounts, and retirement accounts — are insured separately, so you can exceed $250,000 total if you use multiple categories.
  • Deposits at different banks are insured separately, so spreading money across banks increases your total protection.
  • FDIC coverage is automatic and free; you do not need to register or take any action to be protected.
  • Certain assets like stocks, bonds, mutual funds, and safe deposit boxes are not covered by FDIC insurance.

How account categories change your coverage limit

The FDIC does not just count total deposits — it sorts them into categories, and each category gets its own $250,000 limit at the same bank. This means you can hold more than $250,000 and still be fully covered if you use different account categories.

The main categories are: single accounts (in your name alone), joint accounts (shared with another person), retirement accounts (IRAs, Roth IRAs, SEP IRAs), trust accounts, and accounts held for a minor. Each category is insured separately. For example, if you have $250,000 in a checking account in your name and $250,000 in a joint savings account with your spouse at the same bank, both are fully covered because they fall into different categories.

The coverage for joint accounts covers each owner up to $250,000, not $250,000 total. So a joint account with two owners is insured up to $250,000 per owner. If the account holds $400,000 and the account owners are equal partners, each owner's $200,000 share is covered, for a total of $400,000 coverage.

Retirement accounts held at the same bank as your regular checking account are insured separately. A $250,000 IRA and a $250,000 individual savings account at the same bank are both fully covered because they are in different categories.

What the FDIC does not cover

FDIC insurance covers cash deposits only — money you put into the bank. It does not cover investments or assets you buy through the bank. Stocks, bonds, mutual funds, and exchange-traded funds (ETFs) are not covered, even if you hold them in an account at an FDIC-insured bank. If the bank fails, you still own those investments; they are not lost.

Safe deposit boxes are not covered. If you store jewelry, documents, or other valuables in a safe deposit box and the bank fails, the FDIC does not reimburse you. You would need a separate homeowners or renters insurance policy to cover those items.

Money market accounts are covered up to $250,000 if they are deposit accounts (not investment accounts). Ask your bank whether your money market account is a deposit product or an investment product — the distinction matters for coverage.

Cashier's checks, money orders, and traveler's checks purchased through the bank are not covered by FDIC insurance. Neither are safe deposit box contents, securities, or funds held in brokerage accounts, even if the brokerage is owned by an FDIC-insured bank.

How to check if your bank is FDIC-insured

The easiest way to confirm FDIC coverage is to look for the FDIC logo on the bank's website or in the branch. Most FDIC-insured banks display the logo prominently. You can also search the FDIC's Bank Find tool on the FDIC website — enter the bank name and your state, and it will tell you whether that institution is insured and what the coverage limits are.

Online banks are often FDIC-insured even though they have no physical branches. Check the bank's website for the FDIC logo or search the Bank Find tool. Some online banks are insured; others are not. Do not assume based on the bank's size or reputation.

If you use multiple banks, the FDIC website has a calculator that helps you figure out your total coverage across all your accounts and categories. You enter your account details, and it shows you how much is covered at each bank.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors up to the coverage limit. The FDIC does not mail checks — it typically transfers your covered deposits to another bank within a few business days. You will receive a notice from the FDIC or the new bank telling you where your money went and how to access it.

The FDIC has never failed to pay a covered deposit since the program began in 1933. The agency is funded by insurance premiums paid by banks, not by taxpayer money, though Congress can authorize additional funding if needed.

If your deposit exceeds the coverage limit, you become an unsecured creditor of the failed bank. You may recover some of the uninsured amount, but there is no may provide. Recovery depends on how much the bank's assets sell for and how many other creditors are ahead of you in line.

Strategies for protecting deposits over $250,000

If you have more than $250,000 to deposit, you have several options. The simplest is to spread money across multiple FDIC-insured banks. 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 also use different account categories at the same bank. A $250,000 individual account, a $250,000 joint account with your spouse, and a $250,000 IRA are all covered separately at the same bank, for a total of $750,000 coverage.

Some people use trust accounts to increase coverage. A revocable trust account can cover up to $250,000 per beneficiary, up to a maximum of five beneficiaries, for a total of $1.25 million. This requires setting up a formal trust and naming beneficiaries in the account registration. Ask your bank about the specific requirements.

If you have a business, a business account is a separate category and is covered up to $250,000. This is different from your personal account, so you can hold $250,000 in a personal account and $250,000 in a business account at the same bank, and both are fully covered.

NCUA coverage for credit unions

Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. NCUA coverage works the same way: up to $250,000 per member per credit union per account category. If you have accounts at multiple credit unions, each one's $250,000 limit is separate.

You can check whether a credit union is NCUA-insured by looking for the NCUA logo or by searching the NCUA's Credit Union Locator on its website. The same account category rules apply — individual, joint, retirement, and trust accounts are all insured separately.

Frequently Asked Questions

If I have $500,000 at one bank, how much is covered?

If all $500,000 is in a single account category (like a checking account in your name alone), the FDIC covers $250,000 and you lose $250,000. If you split it into different categories — $250,000 in an individual account and $250,000 in a joint account with your spouse — both are fully covered.

Does FDIC insurance cover money I transfer between banks?

Yes. FDIC coverage applies to deposits held at the bank, regardless of how the money got there. Whether you transferred it from another bank, received it as a paycheck, or deposited cash, it is covered up to the limit once it is in the account.

What if my bank is bought by another bank?

Your coverage continues under the FDIC. If Bank A is acquired by Bank B, your deposits are now at Bank B, and your coverage limit resets. You have $250,000 coverage at the new bank. If you had uninsured deposits at Bank A, they are now uninsured at Bank B unless you move them to a different institution.

Are online banks covered by FDIC insurance?

Some are, and some are not. Search the FDIC's Bank Find tool or look for the FDIC logo on the bank's website. Many online banks are FDIC-insured and offer the same $250,000 coverage as brick-and-mortar banks. Do not assume based on the bank's size or online-only model.

Does FDIC insurance cover interest earned on my deposits?

Yes. Interest accrued on your deposits is covered as part of your total balance. If you have $240,000 in a savings account and earn $5,000 in interest, the total $245,000 is covered. Once you exceed $250,000 total, only the first $250,000 is covered.