Standard savings accounts at banks with FDIC insurance are covered up to $250,000 per depositor, per bank

If your bank holds an FDIC insurance certificate, your savings account is covered. The Federal Deposit Insurance Corporation protects deposits at member banks when the bank fails — not when you lose money on investments or when someone steals from your account. The coverage limit is $250,000 per person, per bank, per account category. That means if you have $300,000 in a savings account at one FDIC-insured bank, the FDIC covers $250,000 and you lose the rest if the bank closes.

Not every bank is FDIC-insured. Credit unions use a different system called NCUA insurance. Online banks, traditional brick-and-mortar banks, and some smaller regional banks all participate in FDIC insurance, but you need to verify your specific bank is a member. The FDIC maintains a searchable database of all member institutions on its website.

The $250,000 limit applies to the total across all savings accounts you hold at that one bank. If you have a savings account and a money market account at the same FDIC-insured bank, they share the $250,000 coverage, not each get their own $250,000. Checking accounts are covered under the same limit and same category.

Key Takeaways

  • FDIC insurance covers up to $250,000 per person at each FDIC-insured bank, and you can verify your bank's membership on the FDIC's official website.
  • Savings accounts, checking accounts, and money market accounts at the same bank all share the same $250,000 coverage limit.
  • If you have more than $250,000 to protect at one bank, you can open accounts in different ownership categories — such as a joint account or an account in trust — and each category gets its own $250,000 limit.
  • FDIC insurance protects you only if the bank fails; it does not cover fraud, theft, or investment losses in brokerage accounts held at the bank.

How to confirm your bank is FDIC-insured

Go to the FDIC's Bank Find tool at banks.data.fdic.gov. Type in your bank's name or your city, and the search will show you whether that institution is an FDIC member, what its certificate number is, and which branch locations are covered. If your bank does not appear in the search, it is not FDIC-insured.

Many online banks are FDIC-insured even though they have no physical branches. Banks like Ally, Marcus, and Discover are all FDIC members. The lack of a branch does not mean the bank is uninsured — check the Bank Find tool to be certain. Some online banks partner with multiple FDIC-insured banks behind the scenes, which can affect how your coverage works across different account types.

If you bank with a credit union instead, your deposits are covered by the National Credit Union Administration (NCUA), not the FDIC. NCUA coverage works the same way — $250,000 per person per credit union — but the insurer is different. The NCUA has its own member search tool at mapping.ncua.gov.

Account categories and how they change your coverage

The FDIC divides accounts into separate categories, and each category gets its own $250,000 limit at the same bank. This means you can hold more than $250,000 at one FDIC-insured bank and still be fully covered if you use different account categories.

A joint account is one category. If you and another person own a joint savings account together, that account is covered up to $250,000 as a joint account. If you also have your own individual savings account at the same bank, that individual account gets its own $250,000 coverage. The two accounts do not share the limit.

A trust account is another category. If you set up a savings account in the name of a trust, it is covered separately from your individual accounts. A retirement account — such as a traditional IRA or Roth IRA held at the bank — is also its own category and gets $250,000 coverage separate from your other accounts at that bank.

Other categories include accounts held in the name of a minor, accounts where you are the beneficiary of a payable-on-death designation, and accounts held by a business. Each category is treated separately for coverage purposes. If you hold accounts in five different categories at one FDIC-insured bank, you could theoretically have up to $1.25 million in coverage at that single bank.

What FDIC insurance does and does not cover

FDIC insurance covers your deposit balance if the bank fails and closes. It does not cover losses from fraud, theft, or poor investment performance. If someone steals your debit card and drains your account, that is a fraud claim you file with the bank, not an FDIC insurance claim. If you lose money on stocks or mutual funds held in a brokerage account at the bank, FDIC insurance does not apply — those investments are not deposits.

The FDIC also does not cover safe deposit boxes, even though you rent them from the bank. If your valuables are stolen from a safe deposit box, you would need to file a claim against the bank's liability insurance, not FDIC insurance. Safe deposit box contents are not considered deposits.

FDIC insurance also does not cover cashier's checks, money orders, or traveler's checks issued by the bank. These are payment instruments, not deposits. Once you cash them or deposit them elsewhere, they are no longer the bank's liability.

What happens when a bank fails

When an FDIC-insured bank closes, the FDIC steps in as the receiver. The agency works to transfer your deposits to another FDIC-insured bank or pays you directly from the insurance fund. Most of the time, your money moves to a new bank within one to three business days, and you keep your account number and can access your funds immediately.

The FDIC has a transaction account may provide program that temporarily raises coverage to $250,000 for all transaction accounts (checking and money market accounts used for regular payments) at the same bank, regardless of how many separate accounts you hold. This program was set to expire at the end of 2024, but Congress has extended similar protections in the past during financial stress. Check the FDIC website for current rules if you hold multiple transaction accounts.

If your bank fails and you have more than $250,000 in a single account category, the FDIC pays you $250,000 and you become a creditor for the remainder. You may recover some of the excess through the bank's liquidation process, but recovery is not may provide and can take years.

Strategies for protecting more than $250,000

If you have more than $250,000 to keep safe, spread your deposits across multiple FDIC-insured banks. Each bank provides its own $250,000 coverage per account category. You could open a savings account at Bank A, another at Bank B, and a third at Bank C, and each would be fully covered up to $250,000.

You can also use different account categories at the same bank. Open an individual savings account, a joint account with your spouse, and a trust account, and each gets $250,000 coverage. This approach keeps your money at one institution while still protecting the full amount.

Some people use a combination of both strategies. You might hold $250,000 in an individual account at Bank A, $250,000 in a joint account with your spouse at Bank B, and $250,000 in a trust account at Bank C. As long as each account is at a different bank or in a different category, all three are fully covered.

Online banks that partner with multiple FDIC-insured banks behind the scenes sometimes offer higher coverage limits through a service called sweep accounts. These accounts automatically move your money between partner banks to keep each deposit under $250,000 at any single institution. Verify how this works with your specific bank before relying on it.

Frequently Asked Questions

Does FDIC insurance cover my money if I lose my debit card or someone hacks my account?

No. FDIC insurance only covers bank failure, not fraud or theft. If your account is compromised, you file a fraud claim with your bank. Federal law limits your liability for unauthorized transactions, but that protection comes from banking regulations, not FDIC insurance. Report fraud to your bank immediately.

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

If all $500,000 is in one account category — such as a single savings account — the FDIC covers $250,000 and you lose the rest if the bank fails. To protect the full amount at one bank, split it into different account categories: $250,000 in an individual account, $250,000 in a joint account with someone else, and so on.

Are online banks FDIC-insured?

Many are, but not all. Online banks like Ally, Marcus, and Discover are FDIC members. Others may not be. Search your bank's name in the FDIC's Bank Find tool to confirm. Do not assume an online bank is insured just because it is well-known.

What is the difference between FDIC and NCUA insurance?

FDIC insures banks; NCUA insures credit unions. Both provide $250,000 per person per institution coverage. The insurer is different, but the protection level is the same. Check which system your financial institution uses before opening an account.

If my bank merges with another bank, does my coverage change?

When two FDIC-insured banks merge, accounts at both banks are covered separately for six months after the merger closes. After six months, they are treated as one bank for coverage purposes. If you have $250,000 at each bank before the merger, you have six months to move money to another bank to keep both amounts fully covered.