Your money in a savings account is protected by federal insurance up to $250,000 per depositor, per bank

The Federal Deposit Insurance Corporation (FDIC) insures deposits at banks that are members of the FDIC system. This means if your bank fails, the FDIC pays you back up to $250,000 in each account category you hold at that bank. This protection is automatic — you do not need to sign up for it or pay a fee.

The $250,000 limit applies per depositor, per insured bank, per ownership category. A joint savings account counts as a separate category from an individual account, so a married couple can each have $250,000 in a joint account plus $250,000 in individual accounts at the same bank and be fully covered.

If you have more than $250,000 at one bank, the amount over the limit is not insured. Money market accounts, checking accounts, and certificates of deposit (CDs) are all covered by the same $250,000 limit — they do not each get their own $250,000 protection.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor per bank, and this protection is automatic at any FDIC-member bank.
  • Different account categories (individual, joint, retirement, trust) each get their own $250,000 limit at the same bank, so you can protect more money by spreading it across categories.
  • You can verify your bank is FDIC-insured by searching the FDIC's Bank Find tool on their website or asking your bank directly.
  • Money held in savings accounts is not at risk from market swings or stock price changes — the risk is only if the bank itself fails.
  • Credit unions use a similar system called NCUA insurance, which also covers up to $250,000 per depositor per institution.

How to check if your bank is FDIC-insured

Not all banks are FDIC members. Online banks, credit unions, and some smaller institutions may use different insurance systems or none at all. You can search the FDIC's Bank Find tool at bankfind.fdic.gov to confirm your bank is covered. Type in your bank's name and the state where you opened your account.

If your bank does not appear in the search, contact your bank directly and ask whether it is FDIC-insured. Most mainstream banks and credit unions are insured, but it is worth confirming before you deposit a large sum. The FDIC website also lists which institutions are not members.

What happens if your bank fails

Bank failures are rare in the United States. When a bank does fail, the FDIC steps in, takes over the bank's assets, and pays depositors from the insurance fund. You typically receive your money within a few business days, though the exact timeline depends on how the FDIC handles the closure.

The FDIC has a track record of paying out insured deposits in full and on time. Since the FDIC was created in 1933, no depositor has lost a single dollar of insured funds due to a bank failure. The insurance fund is backed by premiums that banks pay and by the full faith and credit of the U.S. government.

How account ownership categories affect your coverage

The FDIC counts different types of account ownership as separate categories, each with its own $250,000 limit. An individual account, a joint account, a retirement account (IRA), and a trust account at the same bank are each insured separately. This means a married couple can hold up to $1 million in coverage at one bank by using multiple categories.

Here is how the main categories work: an individual savings account is covered up to $250,000; a joint account where both owners have equal rights is covered up to $250,000 for the account as a whole (not per person); a traditional or Roth IRA is covered up to $250,000; and a revocable trust account is covered based on the number of unique beneficiaries, up to $250,000 per beneficiary.

If you are unsure how your account is categorized or whether you are fully covered, the FDIC website has a coverage calculator that walks you through your specific situation. You can also call your bank and ask them to confirm your coverage limits.

Risks that FDIC insurance does not cover

FDIC insurance protects you only if the bank fails. It does not protect you from theft, fraud, or your own mistakes. If someone steals your debit card and drains your account, that is a separate issue handled by your bank's fraud policies and federal consumer protection laws, not by FDIC insurance.

If you wire money to a scammer or authorize a transfer by mistake, FDIC insurance will not recover that money. Your bank may have policies that help in some cases, but the insurance itself covers only bank failure. Similarly, if you lose your debit card or forget your password, those are security issues, not insurance issues.

Credit unions and NCUA insurance

If your money is in a credit union rather than a bank, it is covered by the National Credit Union Administration (NCUA), not the FDIC. NCUA insurance works the same way: up to $250,000 per depositor per credit union, with the same account category breakdown.

You can search for NCUA-insured credit unions on the NCUA website at mycreditunion.gov. Most credit unions in the United States are NCUA members. Like the FDIC, the NCUA has never had a depositor lose insured funds due to a credit union failure.

What to do if you have more than $250,000 to save

If you have savings above $250,000, you have several options to keep all of it insured. You can open accounts at multiple FDIC-insured banks, since the $250,000 limit is per bank, not per person. You can also use different account categories at the same bank — for example, an individual account, a joint account, and a retirement account would each get $250,000 of coverage.

Some people use a service called IntraFi Network (formerly Promontory Interbank Network) that automatically spreads deposits across multiple FDIC-insured banks while you maintain a single login and account number. Your bank can tell you whether it offers this service. The coverage limits remain the same, but the spreading happens behind the scenes.

Another option is to put money into certificates of deposit (CDs) at different banks, since each CD counts as a separate deposit at that institution. You could also hold money in a revocable trust account, which covers up to $250,000 per named beneficiary.

Frequently Asked Questions

Is my money safe if the bank is hacked?

FDIC insurance does not cover hacking or fraud. However, federal law limits your liability for unauthorized transactions to $50 if you report the fraud within two business days, and $500 if you report it within 60 days. Your bank may also have its own fraud protection policies that go beyond these minimums. Contact your bank immediately if you notice unauthorized activity.

Does FDIC insurance cover money I owe the bank?

No. If you have a loan or credit card debt with your bank, the bank can use your deposits to pay off that debt before FDIC insurance applies. This is called a setoff right. If you are concerned about this, keep savings at a different bank from where you have loans.

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

It does not matter. All branches of the same bank are treated as one institution for FDIC purposes. Your total coverage at that bank is $250,000 per category, regardless of how many branches you use or how many accounts you open.

Are savings accounts safer than keeping cash at home?

A savings account at an FDIC-insured bank is safer than cash at home in almost every way. Your money is protected from theft, fire, and loss. You also earn interest on the balance. The only scenario where cash at home is safer is if you distrust the banking system itself, but FDIC insurance has a 90-year track record of protecting deposits.

Do online banks have the same FDIC protection as traditional banks?

Yes, if they are FDIC members. Many online banks are fully FDIC-insured and offer the same $250,000 coverage as brick-and-mortar banks. Always search the FDIC Bank Find tool to confirm, since not all online institutions are members. Online banks that are insured often offer higher interest rates because they have lower overhead costs.