Yes, most savings accounts are insured up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) covers savings accounts at member banks. If a bank fails, the FDIC pays you back up to $250,000 for each account you own at that bank. This limit applies per depositor, per insured bank, per account ownership category — so the specifics depend on how the account is titled and which bank holds it.

Not every savings account is covered the same way. A savings account in your name alone is insured differently than a joint account or an account held in trust. The $250,000 limit is per category, not per account, so if you have two savings accounts at the same bank both in your name alone, the FDIC covers only $250,000 total across both accounts.

The FDIC does not charge you for this coverage. It comes automatically when you open an account at a member bank. You do not need to sign up, pay a fee, or do anything to activate it.

Key Takeaways

  • The FDIC insures savings accounts up to $250,000 per depositor per bank, and this coverage is automatic at member banks.
  • The $250,000 limit applies to each account ownership category separately — a joint account is insured separately from an account in your name alone.
  • Money market accounts and NOW accounts (negotiated order of withdrawal accounts) are also FDIC-insured, but money market funds and brokerage accounts are not.
  • You can increase your coverage by spreading deposits across multiple banks, opening joint accounts, or using trust accounts, each of which has its own $250,000 limit.
  • The FDIC maintains a tool called the FDIC Electronic Deposit Insurance Estimator (EDIE) where you can enter your account details and see exactly how much coverage you have.

Which account types are covered and which are not

The FDIC covers savings accounts, checking accounts, money market accounts, and NOW accounts (a hybrid that pays interest and allows limited check-writing). Certificates of deposit (CDs) are also covered. All of these fall under the same $250,000 limit per depositor per bank, unless they are held in different ownership categories.

The FDIC does not cover money market funds, mutual funds, stocks, bonds, or brokerage accounts. These are investment products, not deposits, and they are protected by different rules — usually by the Securities Investor Protection Corporation (SIPC) if the brokerage fails, but not if the investment itself loses value. If your bank offers a brokerage service or investment products, ask which accounts are FDIC-insured and which are not.

Savings accounts at credit unions are covered by the National Credit Union Administration (NCUA), not the FDIC, but the coverage limit and rules are the same: $250,000 per member per credit union per account ownership category.

How account ownership categories change your coverage

The FDIC recognizes several ownership categories, and each one has its own $250,000 limit at the same bank. This means you can have more than $250,000 insured at one bank if you spread it across different categories.

An account in your name alone is one category. A joint account (where two or more people own it together) is a separate category — the FDIC insures it up to $250,000 total, and if the bank fails, each owner gets their share up to $250,000. A revocable trust account (where you name beneficiaries to inherit the money) is another category, with $250,000 coverage per beneficiary, up to five beneficiaries. An irrevocable trust, an account held for a minor, and an account held in your name as a fiduciary (such as a guardian or executor) are each separate categories as well.

The key word is separate. If you have $200,000 in a savings account in your name alone and $200,000 in a joint account at the same bank, both are fully covered because they are different ownership categories. But if you have $200,000 in one savings account and $100,000 in another savings account, both in your name alone at the same bank, only $250,000 total is covered — the FDIC does not count them separately.

How to check your coverage with EDIE

The FDIC provides a free tool called the EDIE (Electronic Deposit Insurance Estimator) at fdic.gov. You enter your bank name, account type, balance, and ownership category, and EDIE tells you exactly how much is covered and how much is not.

EDIE is useful if you have complex account structures — multiple banks, joint accounts, trust accounts, or all of the above. It walks you through the ownership categories and shows you where you have gaps. You do not need to log in or provide personal information; it is a calculation tool only.

If you want to know your coverage without using EDIE, call your bank and ask. The bank should be able to tell you how much of each account is insured. You can also look at your account statements or online banking portal — many banks display FDIC coverage information there.

What happens if your bank fails

If an FDIC-member bank fails, the FDIC steps in. It does not take over the bank's operations; instead, it arranges for another bank to take over the deposits, or it pays you directly. In most cases, you have access to your insured funds within one to two business days, even before the bank officially closes.

The FDIC will contact you if your bank fails. You do not need to do anything to file a claim. The FDIC has a list of failed banks on its website, and it publishes the details of each closure, including which bank took over the deposits (if any) and how to access your money.

If your account balance exceeds the $250,000 limit, the amount over the limit is not covered. You become an unsecured creditor of the failed bank, meaning you may recover some of that money later, but it is not may provide and can take years.

How to increase your coverage across multiple banks

If you have more than $250,000 to keep safe, you can spread it across multiple FDIC-member banks. Each bank has its own $250,000 limit per depositor per ownership category, so $250,000 at Bank A and $250,000 at Bank B are both fully covered.

You can also increase coverage at a single bank by using different ownership categories. For example, you could have $250,000 in an account in your name alone, $250,000 in a joint account with your spouse, and $250,000 in a revocable trust account naming your children as beneficiaries — all at the same bank, all fully covered.

Some people use a service called IntraFi Network (formerly Promontory Interbank Network) to place deposits across multiple banks automatically. You deposit money at one bank, and IntraFi spreads it across multiple FDIC-member banks in chunks of $250,000 or less, so all of it is covered. Your bank may offer this service, or you may need to open accounts at multiple banks yourself.

Coverage limits for special account types

Revocable trust accounts have a different coverage structure than other accounts. If you set up a savings account as a revocable trust and name beneficiaries, the FDIC covers up to $250,000 per beneficiary, up to five beneficiaries. So a trust account naming three beneficiaries could have up to $750,000 covered at one bank.

Irrevocable trust accounts are covered up to $250,000 total, regardless of how many beneficiaries you name. The difference is that an irrevocable trust cannot be changed or cancelled, so the FDIC treats it as a permanent arrangement.

Accounts held in your name as a fiduciary — such as a guardianship account, an estate account, or a conservatorship account — are each insured separately up to $250,000. If you are the guardian of two minors and hold separate accounts for each, both are covered.

Frequently Asked Questions

Does FDIC insurance cover my savings account if the bank makes bad investments?

No. FDIC insurance covers you only if the bank fails — meaning it runs out of money and cannot pay depositors. It does not cover losses from bad investments, fraud by bank employees, or a decline in the value of investments you hold through the bank. If you hold stocks or mutual funds through a bank's brokerage service, those are not FDIC-insured.

If I have a joint account with my spouse, is the full $250,000 covered for each of us?

Yes. A joint account is insured up to $250,000 total, but that $250,000 belongs to both of you together. If the bank fails, each owner can recover up to their share of the $250,000. If you each contributed equally, you each recover up to $125,000. The FDIC does not track who put in what money — it divides the account equally among the owners unless you have a written agreement stating otherwise.

What if I move my money to a different bank — do I lose my FDIC coverage?

No. FDIC coverage is tied to the bank, not to you. When you move money to a new bank, your coverage at the old bank ends (because you no longer have an account there), but your coverage at the new bank begins immediately. There is no gap or waiting period.

Are online banks FDIC-insured?

Yes, if they are FDIC-member banks. Most online banks are members. You can check whether a bank is FDIC-insured by searching the FDIC's Bank Find tool at fdic.gov, which lists all member banks. Online banks often offer higher interest rates than traditional banks because they have lower overhead costs, but the FDIC coverage is the same.

Can I have more than $250,000 covered at one bank if I use different account types?

Only if you use different ownership categories. Two savings accounts in your name alone at the same bank share one $250,000 limit. But a savings account in your name alone and a joint savings account at the same bank each have their own $250,000 limit, so you could have $500,000 covered total.