Yes, savings accounts are protected by FDIC insurance 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 hold at that bank. This limit applies per depositor, per institution — so if you have $300,000 in savings at one bank, the FDIC covers $250,000 and you lose the rest.

The $250,000 limit has been in place since 2010. It applies to your total deposits across all savings accounts at the same bank, not per account. If you have three savings accounts at Chase, for example, the FDIC adds them together and protects up to $250,000 of the combined total.

Not every bank is FDIC-insured. Most traditional banks are members, but some credit unions, online banks, and specialty lenders are not. You can check whether a specific bank is covered by searching the FDIC's BankFind tool on their website — it takes 30 seconds and tells you the exact coverage limits for that institution.

Key Takeaways

  • The FDIC protects up to $250,000 per depositor at each bank, and this limit covers all your savings accounts at that bank combined.
  • Coverage is automatic at member banks — you do not need to sign up, pay a fee, or do anything to activate it.
  • If you have more than $250,000 to protect, you can open accounts at different FDIC-insured banks to cover the full amount.
  • You can verify whether a specific bank is FDIC-insured by using the BankFind tool on the FDIC website.
  • FDIC protection does not cover investment accounts, money market funds, or stocks held at a bank.

What counts as a savings account under FDIC coverage

The FDIC covers traditional savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). All three are treated the same way for insurance purposes — they count toward your $250,000 limit at each bank.

Checking accounts are also covered under the same $250,000 limit. If you have $150,000 in a savings account and $120,000 in a checking account at the same bank, the FDIC covers only $250,000 of the combined $270,000. The oldest deposits are covered first, so you would lose $20,000.

Individual Retirement Accounts (IRAs) held at a bank are covered separately. An IRA at the same bank has its own $250,000 limit, so you can protect an additional $250,000 in an IRA savings account without reducing coverage on your regular savings.

What the FDIC does not cover

FDIC insurance does not cover stocks, bonds, mutual funds, or exchange-traded funds (ETFs) — even if you buy them through a bank. These are securities, not deposits, and they are covered by different insurance (SIPC, or Securities Investor Protection Corporation, which has different rules and limits).

Safe deposit boxes are not covered. If you keep cash, jewelry, or documents in a bank's safe deposit box and the bank fails, the FDIC does not reimburse you. The contents are your responsibility.

Cryptocurrency held at a bank is not covered by the FDIC. Some banks now offer cryptocurrency services, but those holdings fall outside deposit insurance.

Uninsured money market funds are not covered, though money market deposit accounts (MMDAs) are. The difference matters: an MMDA is a bank deposit product and is FDIC-insured; a money market fund is a mutual fund and is not.

How to protect more than $250,000

If you have more than $250,000 in savings, you can spread it across multiple FDIC-insured banks to protect the full amount. Each bank provides a separate $250,000 limit. So $250,000 at Bank A and $250,000 at Bank B means both amounts are fully covered.

You can also use different account categories at the same bank to increase coverage. A regular savings account, an IRA, and a joint account (if you have one) each have their own $250,000 limit at the same institution. A joint savings account is covered up to $250,000 per account holder, so a joint account with two people is covered up to $500,000 total.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to manage deposits across multiple banks automatically. You deposit money into one account, and IntraFi splits it across partner banks so that each chunk stays under the $250,000 limit. This is useful if you want to keep money in one place but need coverage beyond $250,000, though it comes with a small fee.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays you directly. You do not have to file a claim or wait for a lawsuit. The FDIC typically pays within a few business days, though in rare cases it can take longer.

The FDIC does not transfer your account to another bank automatically. You will receive a check or a direct deposit for the amount covered. If your balance exceeded $250,000, you receive only $250,000.

Bank failures are rare in the United States. The FDIC has been in operation since 1933, and the insurance fund is built from fees paid by member banks, not from taxpayer money. Since 2008, fewer than 20 banks have failed per year on average.

How to check if your bank is FDIC-insured

Go to the FDIC's BankFind tool at bankfind.org. Enter your bank's name or location, and the tool shows you whether it is insured, what the coverage limits are, and which FDIC region oversees it.

If your bank is not listed, it is not FDIC-insured. This does not mean it is unsafe — credit unions, for example, are insured by the NCUA (National Credit Union Administration) instead — but you should understand what insurance covers your deposits.

Some online banks are FDIC-insured even though they have no physical branches. The FDIC website lists them by name. If you are considering an online bank, search for it in BankFind before opening an account.

Coverage for joint accounts and special situations

A joint savings account is covered up to $250,000 per account holder. If two people own a joint account with $400,000, the FDIC covers $250,000 for each person, protecting the full $400,000. This is different from a single-owner account, where $400,000 would be covered only up to $250,000.

If you are a beneficiary on a savings account (meaning the account owner named you to receive the money after they die), that account is covered separately up to $250,000. This is called "revocable trust" coverage and applies only if the account is set up correctly with you named as the beneficiary.

Accounts held in trust for a minor are also covered separately. A parent or guardian holding money in trust for a child's benefit has its own $250,000 limit, separate from the parent's personal accounts.

Frequently Asked Questions

If I have $300,000 in a savings account at one bank, how much does the FDIC cover?

The FDIC covers $250,000. You lose the remaining $50,000 if the bank fails. To protect the full $300,000, you would need to move $50,000 to a different FDIC-insured bank.

Does FDIC insurance cover my money market fund?

No, if it is a money market fund (a mutual fund). Money market deposit accounts (MMDAs) are covered, but money market funds are not. Check your account statement or ask your bank which type you have.

If I have accounts at two different banks, are they both covered?

Yes. Each FDIC-insured bank provides its own $250,000 limit. You can have $250,000 at Bank A and $250,000 at Bank B, and both amounts are fully covered.

What if my bank is not FDIC-insured?

Your deposits are not covered by the FDIC. Credit unions are insured by the NCUA instead, which has similar limits. If your bank is neither FDIC nor NCUA-insured, your deposits are at risk if the institution fails.

Does FDIC insurance cover my safe deposit box?

No. Safe deposit boxes are not covered by FDIC insurance. The bank is not responsible for the contents if the bank fails or the box is damaged.