Most savings accounts at banks and credit unions are federally insured up to $250,000 per depositor, per institution

If your bank fails, the Federal Deposit Insurance Corporation (FDIC) protects your savings account balance up to $250,000. Credit unions get the same protection through the National Credit Union Administration (NCUA). This means if you have $50,000 in a savings account at a bank that goes under, you will get that $50,000 back. The insurance is automatic — you do not have to sign up or pay a fee.

The $250,000 limit applies per depositor, per bank. If you have $200,000 at Bank A and $150,000 at Bank B, both are fully covered because they are at different institutions. But if you have $300,000 at one bank in a single savings account, only $250,000 is insured.

Not all savings products are covered the same way. A regular savings account is covered. A money market deposit account is covered. Certificates of deposit (CDs) are covered. But savings accounts at investment firms, brokerage houses, or insurance companies are not FDIC-insured — those are different beasts with different protections.

Key Takeaways

  • The FDIC insures savings accounts up to $250,000 per person per bank, and the NCUA provides the same coverage at credit unions.
  • The insurance is automatic and costs you nothing — you do not need to register or take any action.
  • If you have more than $250,000 at one bank, the amount over that limit is not protected, so splitting money across institutions protects more of it.
  • Savings accounts at brokerages, investment firms, and insurance companies are not federally insured and follow different rules.
  • Joint accounts and accounts held in trust have separate $250,000 limits, so a joint savings account is covered up to $250,000 per owner.

How the $250,000 limit works across multiple accounts at one bank

The $250,000 limit is per depositor, per bank — not per account. If you have three savings accounts at the same bank, the FDIC adds them all together and insures the total up to $250,000. So if you have a savings account with $100,000, a money market account with $80,000, and a CD with $90,000, all at the same bank, only $250,000 of that $270,000 is covered. The extra $20,000 is at risk.

This is why people with large balances sometimes split their money across multiple banks. If you have $500,000 to save, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully insured. You could also split it three ways — $200,000 at Bank A, $200,000 at Bank B, and $100,000 at Bank C — and still be fully covered.

The FDIC website has a tool called the FDIC Coverage Calculator that lets you enter your account balances and see exactly how much is insured at each bank. It accounts for joint accounts, trust accounts, and other special situations.

Joint accounts and accounts in trust have separate insurance limits

A joint savings account — one owned by two people together — is insured up to $250,000 per owner. So if you and your spouse have a joint savings account with $400,000, the FDIC covers $250,000 for you and $250,000 for your spouse, for a total of $500,000 covered. Each owner's share is insured separately.

Accounts held in trust for someone else also get their own $250,000 limit. If you are the trustee of a trust account and the beneficiary is your child, that account is insured up to $250,000 separate from your own savings account. If the trust has multiple beneficiaries, each beneficiary gets $250,000 of coverage.

Retirement accounts — IRAs, SEP-IRAs, and similar accounts — are also insured separately up to $250,000, even if they are at the same bank as your regular savings account. So you could have $250,000 in a savings account and $250,000 in an IRA at the same bank, and both would be fully covered.

Accounts at credit unions are insured by the NCUA, not the FDIC

Credit unions are not banks, so they do not use FDIC insurance. Instead, the National Credit Union Administration (NCUA) insures savings accounts at federally chartered credit unions and most state-chartered credit unions. The coverage is identical to the FDIC: $250,000 per depositor, per credit union, with the same rules for joint accounts and trust accounts.

If you have accounts at both a bank and a credit union, they are insured separately. You could have $250,000 at a bank and $250,000 at a credit union, and both would be fully covered. The NCUA website has its own coverage calculator, similar to the FDIC's tool.

A small number of credit unions are not federally insured — they may be insured by a state fund or not insured at all. Before you open an account at a credit union, check whether it displays the NCUA logo or the state insurance seal. The credit union's website or a phone call to the main office will tell you.

Savings accounts at investment firms and brokerages are not FDIC-insured

If you have a savings account or money market account at an investment brokerage like Fidelity, Charles Schwab, or E-Trade, it is not covered by FDIC insurance. These firms are not banks. Instead, they may carry SIPC insurance (Securities Investor Protection Corporation), which covers stocks and bonds you own, but not cash sitting in a savings account.

Some brokerages sweep your cash into a network of partner banks, and in that case the cash may be FDIC-insured through those banks. But you have to check with the brokerage to know for sure. Ask them directly: "Is my cash balance FDIC-insured, and if so, up to what limit?" Get the answer in writing.

Insurance company savings products and annuities are also not FDIC-insured. They may be backed by state insurance guaranty funds, which work differently and have lower limits. Before you put money into any savings product, confirm whether it is FDIC-insured or protected by something else.

What happens if a bank fails and your account is insured

When a bank fails, the FDIC steps in and either arranges for another bank to take over the failed bank's accounts, or it pays you directly. In most cases, you will see your money transferred to a new bank within a few business days. You will get a letter explaining what happened and where your account is now. You do not have to do anything — the FDIC handles it.

If the FDIC pays you directly instead of transferring your account, the check or electronic transfer usually arrives within a few weeks. The FDIC has never missed a deadline for insured deposits, even during the 2008 financial crisis when many large banks failed.

If your balance exceeds the $250,000 limit, the amount over the limit is treated as a claim against the failed bank's assets. You may recover some of it, but there is no may provide. This is why staying within the insurance limit matters if you want certainty.

How to check if your bank or credit union is federally insured

The easiest way is to look for the FDIC or NCUA logo on the bank's or credit union's website or in the lobby. Both agencies maintain searchable databases of insured institutions on their websites. You can search by the bank's name or by your ZIP code to see which banks in your area are insured.

You can also call your bank's main customer service line and ask: "Is my savings account FDIC-insured?" They will tell you yes or no. If they say no, ask what insurance or protection your account has instead.

The FDIC's institution search tool is at fdic.gov/resources/deposit-insurance/institution-search. The NCUA's tool is at ncua.gov/analysis/credit-union-search. Both are free and take less than a minute to use.

Frequently Asked Questions

If I have $300,000 in a savings account at one bank, how much is insured?

Only $250,000 is insured. The remaining $50,000 is not protected if the bank fails. To protect the full $300,000, you would need to split it across two banks — $250,000 at Bank A and $50,000 at Bank B.

Are online savings accounts FDIC-insured?

Yes, if the online bank is FDIC-insured. Many online banks are owned by or partnered with FDIC-insured banks. Check the bank's website for the FDIC logo or search the FDIC database to confirm. The insurance limit is the same as at a traditional bank: $250,000 per depositor.

What if I have a savings account in my name and a joint savings account with my spouse at the same bank?

They are insured separately. Your individual account is covered up to $250,000, and the joint account is covered up to $250,000 per owner (so $500,000 total if both owners are on it). You could have $250,000 in your individual account and $500,000 in the joint account at the same bank, and all of it would be insured.

Does FDIC insurance cover money I lose to fraud or theft?

No. FDIC insurance only covers losses when a bank fails. If someone steals your account information or a scammer tricks you into sending money, that is not covered by FDIC insurance. You would need to report it to your bank and the police, and your bank may have its own fraud protection policies.

If my credit union fails, how long does it take to get my money back?

The NCUA handles failed credit unions the same way the FDIC handles failed banks. Your money is usually transferred to another credit union or paid to you within a few business days. The NCUA has never failed to pay insured deposits on time.