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

The Federal Deposit Insurance Corporation (FDIC) is the government agency that protects your money if a bank fails. When a bank closes, the FDIC pays depositors back up to $250,000 per person per institution. This limit has been in place since 2010 and applies to most deposit accounts — checking, savings, money market accounts, and certificates of deposit (CDs).

The $250,000 limit is per depositor, not per account. This means if you have both a checking account and a savings account at the same bank, the FDIC counts them together toward your single $250,000 protection. If your total deposits at one bank exceed $250,000, only the first $250,000 is insured.

The FDIC does not insure investment products like stocks, bonds, mutual funds, or brokerage accounts held at a bank. It also does not cover safe deposit boxes, contents of those boxes, or money you lend to the bank (such as through a bank-issued bond). If you have money in any of these forms, it is not protected by FDIC insurance.

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank, and this limit applies across all your deposit accounts at that single institution combined.
  • Money in checking, savings, money market, and CD accounts all count toward the $250,000 limit at each bank where you hold deposits.
  • If you have more than $250,000 to protect, you can spread deposits across multiple banks or use joint account ownership to increase your coverage.
  • Investment accounts, brokerage accounts, and safe deposit boxes are not covered by FDIC insurance, even if held at a bank.
  • The FDIC has insured deposits since 1933 and has never left a depositor short of their insured balance when a bank has failed.

How FDIC coverage works across multiple accounts

The FDIC groups your accounts at a single bank into categories, and each category has its own $250,000 limit. The main categories are: single accounts (in your name alone), joint accounts (shared with another person), retirement accounts (IRAs and similar), and trust accounts (held for a beneficiary). If you have a checking account and a savings account both in your name alone at the same bank, they share one $250,000 limit. But if you have a joint account with your spouse at the same bank, that joint account has its own separate $250,000 limit.

This means a married couple can protect up to $500,000 at a single bank by holding $250,000 in individual accounts (each person's $250,000) and another $250,000 in a joint account. Each person's IRA at that bank also gets its own $250,000 limit. The FDIC website has a tool called the FDIC Coverage Calculator where you can enter your account structure and see exactly how much is covered.

If you have more than $250,000 to deposit and want full coverage, the simplest approach is to spread money across different banks. A $500,000 deposit split between two banks ($250,000 each) is fully covered. There is no limit to how many banks you can use, and the FDIC insures each one separately.

What happens when a bank fails

When the FDIC closes a failed bank, it typically arranges for another bank to take over the deposits. In most cases, you keep your account at the new bank without interruption, and your money remains available. The transition usually happens over a weekend, and you can access your funds on Monday morning as if nothing changed. You do not need to do anything — the FDIC handles the transfer automatically.

If no bank agrees to take over the deposits, the FDIC pays you directly. This process is slower but still reliable. The FDIC mails checks or deposits funds into an account you designate. Historically, this has taken a few weeks to a few months, depending on the size and complexity of the failed bank. The FDIC has never failed to pay insured depositors in full since the agency was created in 1933.

Amounts over $250,000 at a failed bank are treated as general creditor claims. You may recover some of this money eventually, but it is not may provide and can take years. This is why staying within the $250,000 limit per bank is important if you want certainty.

Coverage limits for retirement and trust accounts

Retirement accounts held at a bank — including traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs — each have their own $250,000 FDIC limit separate from your other accounts. This means you can have $250,000 in a regular savings account and another $250,000 in an IRA at the same bank, and both are fully covered. The FDIC treats retirement accounts as a distinct category because they are meant for long-term savings.

Trust accounts also have separate coverage. If you hold money in trust for a beneficiary at a bank, that trust account has its own $250,000 limit. A common example is a parent holding money in trust for a child's education. The FDIC insures this separately from the parent's personal accounts at the same bank.

Brokerage accounts held at a bank are not covered by FDIC insurance, even if the bank is FDIC-insured. Brokerage accounts are protected by a different system called SIPC (Securities Investor Protection Corporation), which covers up to $500,000 per customer per brokerage firm but does not cover losses from market declines.

Banks versus credit unions and other institutions

The FDIC insures deposits only at banks and savings institutions that are FDIC members. Most banks in the United States are FDIC-insured, but not all. Before opening an account, you can check the FDIC's BankFind tool on its website to confirm whether a specific bank is covered.

Credit unions are not insured by the FDIC. Instead, they are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 per member per credit union limit. The coverage works the same way — joint accounts, retirement accounts, and trust accounts each have their own $250,000 limit at a single credit union.

Money held at investment firms, insurance companies, or other non-bank institutions is not covered by FDIC insurance. If you want your deposits fully protected, keep them at FDIC-insured banks or NCUA-insured credit unions and stay within the coverage limits.

Checking your coverage and managing multiple accounts

If you have accounts at multiple banks or multiple account types at one bank, the FDIC Coverage Calculator lets you enter your account details and see your exact coverage. You can access it on the FDIC website without logging in. The calculator shows you how much is insured and how much, if any, is uninsured at each institution.

Keep a record of your account structure — which banks you use, what type of account each is, and the names on each account. This record helps you stay organized and makes it easy to verify your coverage if you add or move money. If you are married or have a complex account setup with trusts or beneficiaries, the calculator is especially useful because coverage rules for these accounts are specific.

If you regularly move money between banks or consolidate accounts, remember that the FDIC limit applies at the moment a bank fails, not at the moment you deposit the money. There is no waiting period or "seasoning" requirement — money is covered as soon as it is deposited, even if it arrived the same day the bank closed.

What is not covered by FDIC insurance

FDIC insurance does not cover investment products held at a bank, including stocks, bonds, mutual funds, or exchange-traded funds (ETFs). It also does not cover safe deposit boxes or anything stored inside them — jewelry, documents, cash, or other valuables in a box are not protected if the bank fails. Safe deposit boxes are simply storage; the contents remain your responsibility.

Cashier's checks, money orders, and traveler's checks issued by a bank are not covered by FDIC insurance. Wire transfers and funds transferred out of the bank before it closes are also not covered — once money leaves the bank, FDIC insurance no longer applies. Losses from fraud, theft, or unauthorized transactions are handled separately through your bank's fraud protection policies, not FDIC insurance.

Interest accrued on your account up to the moment the bank closes is covered as part of your insured balance, but only if the total (principal plus interest) does not exceed $250,000. If your account balance reaches exactly $250,000 including accrued interest, you are fully covered.

Frequently Asked Questions

Can I open multiple accounts at the same bank to get more FDIC coverage?

No. Multiple accounts in your name alone at the same bank all share a single $250,000 limit. However, you can increase coverage by using different account categories — a joint account with your spouse, an IRA, and a trust account each have their own $250,000 limit at the same bank. The simplest way to protect more than $250,000 is to use different banks.

What if I have more than $250,000 and want it all covered?

Spread your deposits across multiple FDIC-insured banks. You can put $250,000 at Bank A and $250,000 at Bank B, and both amounts are fully covered. There is no limit to how many banks you can use. You can also use different account categories (joint, retirement, trust) at the same bank to increase coverage.

Does FDIC insurance cover money I lend to the bank?

No. FDIC insurance covers deposits in checking, savings, money market, and CD accounts. If you buy a bank-issued bond or other investment product from the bank, that is not covered by FDIC insurance. Bank bonds are treated as investments, not deposits.

How long does it take to get my money back if a bank fails?

Usually one to two business days if another bank takes over the deposits. If the FDIC pays you directly by check or transfer, it typically takes a few weeks to a few months. The FDIC has never failed to pay insured depositors in full since 1933.

Are online banks covered by FDIC insurance?

Yes, if they are FDIC members. Most online banks are FDIC-insured and offer the same $250,000 coverage as traditional banks. Check the bank's website or use the FDIC BankFind tool to confirm membership before opening an account.