Yes, most savings accounts held at banks and credit unions are insured by the federal government up to $250,000 per depositor, per institution.

The Federal Deposit Insurance Corporation (FDIC) insures deposits at banks. The National Credit Union Administration (NCUA) insures deposits at credit unions. Both are federal agencies that may provide your money if the institution fails. The coverage applies to savings accounts, money market accounts, checking accounts, and certificates of deposit (CDs). It does not cover stocks, bonds, mutual funds, or safety deposit boxes.

The $250,000 limit is per depositor, per institution. If you have $250,000 in savings at Bank A and $250,000 at Bank B, both are fully covered because they are separate institutions. If you have $400,000 at a single bank, only $250,000 is insured. The coverage resets if the bank fails — you do not lose the protection by leaving money there for years.

Key Takeaways

  • The FDIC covers bank deposits and the NCUA covers credit union deposits, each up to $250,000 per person per institution.
  • Coverage includes savings accounts, checking accounts, money market accounts, and CDs, but not investment products like stocks or mutual funds.
  • If you have multiple accounts at the same bank under your name alone, the $250,000 limit applies to all of them combined.
  • Joint accounts, retirement accounts, and trust accounts have separate coverage limits, so you can insure more money by using different account types at the same institution.
  • You can check whether a specific bank or credit union is insured using the FDIC's or NCUA's online search tools.

How the $250,000 limit works across multiple accounts

The coverage limit is per depositor, per institution — not per account. If you hold a savings account and a checking account at the same bank, both balances count toward the single $250,000 limit. A savings account with $150,000 and a checking account with $120,000 at the same bank means only $250,000 is covered; the extra $20,000 is not.

Different account ownership types break the limit. A savings account in your name alone, a joint savings account with your spouse, and a retirement account (IRA or 401k) at the same bank each get their own $250,000 coverage. A trust account also has separate coverage. This means you can hold up to $1 million or more at a single bank and keep it all insured by using different account types.

The coverage does not depend on how long money sits in the account or how often you move it. A deposit made yesterday is covered the same way as one made five years ago. If the bank fails tomorrow, the FDIC or NCUA pays out the insured amount within a few business days.

What types of accounts are covered and what are not

Covered accounts include savings accounts, checking accounts, money market accounts, and CDs. Deposits in any of these forms are insured up to the limit. A CD that matures in five years is covered. A money market account that lets you write checks is covered. A high-yield savings account is covered the same way as a standard one.

Not covered: stocks, bonds, mutual funds, brokerage accounts, and investment advisory accounts. If your bank offers a brokerage service and you buy stocks through it, those stocks are not FDIC-insured. Safety deposit boxes are not insured — the contents belong to you, and the bank is only storing them. Traveler's checks and cashier's checks issued by the bank are not covered. Cryptocurrency held by the bank is not covered.

Some products sold by banks blur the line. A structured note or a bond issued by the bank itself may not be covered. If you are unsure whether a specific product is insured, call the bank and ask directly, or check the FDIC's or NCUA's website for the product type.

How to verify a bank or credit union is federally insured

The FDIC maintains a searchable database called the FDIC BankFind tool. Go to fdic.gov, enter the bank name or location, and the tool shows whether it is insured, its FDIC certificate number, and the date it joined the system. Most banks display an FDIC logo on their website or in their branch, but the database is the official record.

For credit unions, use the NCUA's Credit Union Locator at ncua.gov. Enter the credit union name or location. The tool confirms whether it is insured by the NCUA and shows its charter type (federal or state). A credit union chartered by the NCUA is automatically insured. A state-chartered credit union may or may not be insured — the locator tells you which.

If a bank or credit union does not appear in either database, it is not federally insured. Some institutions call themselves banks but operate without federal insurance. Before opening an account, take 30 seconds to search the database. It takes less time than filling out the account form.

Coverage for joint accounts and retirement accounts

A joint account — one held by two or more people — has its own $250,000 coverage limit separate from each owner's individual accounts. If you and your spouse each have a $200,000 individual savings account and a $150,000 joint savings account at the same bank, all three accounts are fully covered: $200,000 + $200,000 + $150,000 = $550,000 total insured.

Retirement accounts (IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs) each have their own $250,000 limit. A traditional IRA and a Roth IRA at the same bank are covered separately. A 401(k) held at a bank is also covered separately. This structure lets people with retirement savings hold significant balances and keep them all insured.

Trust accounts have separate coverage. A revocable living trust account at a bank is insured up to $250,000 per beneficiary named in the trust, up to a total of $250,000 per trust. The rules for trust coverage are more complex than for individual or joint accounts — if you hold money in a trust account, ask the bank to confirm the coverage amount in writing.

What happens if a bank or credit union fails

If a bank fails, the FDIC takes over and pays out insured deposits. The process usually takes a few business days. You do not need to file a claim or contact the FDIC — the agency identifies all insured accounts and deposits the money into your account at another bank or sends you a check. You keep your debit card and online access until the transition is complete.

The FDIC pays interest accrued up to the date of failure. If your account earned $50 in interest before the bank closed, that $50 is included in the payout. Any amount over $250,000 per depositor per institution is not covered and may be recovered only if the FDIC sells the bank's assets and has money left over — this rarely happens.

A credit union failure works the same way. The NCUA takes over, identifies insured accounts, and pays them out. The timeline is similar: a few business days for the payout. The NCUA has a separate insurance fund from the FDIC, but the coverage limits and process are nearly identical.

Accounts and situations not covered by federal insurance

Deposits at institutions that are not banks or credit unions are not covered. Money held at a brokerage firm, an insurance company, a payday lender, or a check-cashing service is not FDIC or NCUA insured. Some of these institutions have their own insurance or protections, but they are not federal. If you are unsure, search the FDIC or NCUA database.

Deposits made in the name of a business (sole proprietorship, partnership, or corporation) are covered separately from personal deposits, but only up to $250,000 total for that business. A business checking account and a business savings account at the same bank share the $250,000 limit. A sole proprietor's personal account and business account are covered separately.

Deposits held by a third party on your behalf — such as an escrow account held by a real estate agent or attorney — may have limited coverage. The rules depend on whether the third party is acting as a custodian or trustee. If you have money in escrow, ask the holding party whether it is FDIC-insured and up to what amount.

Frequently Asked Questions

If I move money from one bank to another, do I lose coverage?

No. Coverage is based on the institution where the money sits at the time of failure, not on how long it has been there or where it came from. You can move money between banks without affecting your insurance. The new bank's FDIC or NCUA coverage applies immediately.

Does federal deposit insurance cover money I owe the bank?

No. If you have a loan or credit card debt at the same bank where you hold deposits, the bank can offset your insured deposits against what you owe. The insurance protects the deposit itself, but the bank has the right to use it to pay down your debt before the FDIC takes over.

Are online banks covered the same way as brick-and-mortar banks?

Yes, as long as the online bank is FDIC-insured. Most online banks are insured. Search the FDIC BankFind tool to confirm. Online banks often offer higher interest rates on savings accounts because they have lower overhead, but the insurance coverage is identical.

What if I have more than $250,000 and want to keep it all insured?

Open accounts at different banks, use different account types (individual, joint, retirement, trust) at the same bank, or both. Each separate institution and each separate account type has its own $250,000 limit. You can also split money across multiple CDs at the same bank if each CD is in a different ownership category.

Does federal insurance cover money I have in a safe deposit box?

No. A safe deposit box is a storage service only. The bank is not holding the money on your behalf — you own the contents outright. The bank is liable only if it fails to protect the box from theft or damage, not if the bank fails. Contents are your responsibility to insure separately if needed.