Standard savings and checking accounts are covered up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) protects money you keep in savings accounts, checking accounts, and money market deposit accounts at member banks. The protection covers up to $250,000 per person per institution. If your bank fails, the FDIC pays you back up to that limit—you do not lose the money.

The $250,000 limit applies to the total of all your deposits in the same category at the same bank. If you have $150,000 in a checking account and $120,000 in a savings account at the same bank, only $250,000 is covered. The extra $20,000 is not protected.

Not every bank is FDIC insured. Credit unions use a different system called the National Credit Union Administration (NCUA), which works the same way but is a separate program. Before you open an account, check the bank's website or call to confirm it is FDIC insured. The FDIC maintains a searchable database of member institutions on its website.

Key Takeaways

  • The FDIC covers up to $250,000 per person per bank in savings, checking, and money market accounts.
  • The limit is per category and per bank, so $250,000 in checking at Bank A and $250,000 in savings at Bank A means only $250,000 total is protected.
  • Deposits in different ownership categories—such as individual accounts versus joint accounts—are counted separately and each gets $250,000 of coverage.
  • Credit unions are insured by the NCUA, not the FDIC, but the coverage limit and rules are the same.
  • Money market funds sold by investment firms are not FDIC insured, even if they sound similar to money market deposit accounts at banks.

How the $250,000 limit works across multiple accounts

The FDIC counts all deposits you own individually at one bank toward a single $250,000 limit. This means if you have a checking account, a savings account, and a certificate of deposit (CD) all at the same bank under your name alone, the total of all three is covered only up to $250,000.

Deposits in different ownership categories are treated separately. A joint account with your spouse gets its own $250,000 of coverage. A retirement account (IRA) gets its own $250,000. A trust account gets its own $250,000. This means you can have $250,000 in your individual checking account, $250,000 in a joint savings account with your spouse, and $250,000 in an IRA—all at the same bank—and all three amounts are fully covered.

The bank itself does not matter for the limit. If you have $200,000 at Bank A and $100,000 at Bank B, both amounts are fully covered because they are at different institutions. The FDIC insures by bank, not by account type or total wealth.

Account types that are FDIC insured

Checking accounts, savings accounts, and money market deposit accounts are all covered. So are certificates of deposit (CDs), even if they mature at different times. Cashier's checks and traveler's checks issued by the bank are covered. Deposits held in trust for a minor are covered.

Retirement accounts held at banks—including traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs—are each covered up to $250,000 as a separate category. This means you can have $250,000 in a traditional IRA and $250,000 in a Roth IRA at the same bank, and both are protected.

Payable-on-death (POD) accounts and revocable trust accounts are covered, though the rules for how much coverage applies depend on the number of named beneficiaries. A POD account with one beneficiary gets $250,000 of coverage. A revocable trust account with multiple beneficiaries may get up to $250,000 per beneficiary, depending on the trust structure.

Account types that are not FDIC insured

Investment products are not covered by the FDIC, even when held at a bank. Stocks, bonds, mutual funds, and exchange-traded funds (ETFs) have no FDIC protection. Money market mutual funds—which are different from money market deposit accounts—are not insured. If the investment firm fails, you lose the money.

Safe deposit boxes are not insured. The contents belong to you, but the FDIC does not protect them if the bank fails. Insurance for valuables in a safe deposit box comes from your homeowner's or renter's policy, if you have one.

Brokerage accounts at banks are not FDIC insured. If a bank's brokerage division fails, the SIPC (Securities Investor Protection Corporation) may cover some losses, but the rules and limits are different from FDIC coverage. Crypto assets, prepaid cards, and wire transfers sent out of the bank are also not covered.

What happens if a bank fails

When an FDIC member bank fails, the FDIC steps in as the insurer. You do not file a claim or wait for a hearing. The FDIC automatically pays you up to $250,000 per category within a few business days, usually by crediting a new account at another bank or by check.

The FDIC has a process for determining your balance on the day the bank closed. If you made a deposit the day before the bank failed, that deposit counts. If you withdrew money the day the bank closed, the withdrawal may or may not be processed depending on the exact timing—the FDIC uses the bank's records as of the close of business on the failure date.

Bank failures are rare in the modern era. The FDIC has insured deposits since 1933, and no depositor has lost a single dollar of insured funds. The insurance is backed by the full faith and credit of the U.S. government, not by a private fund that could run out of money.

Joint accounts and FDIC coverage

A joint account—where two or more people own the account together—gets its own $250,000 of FDIC coverage, separate from each owner's individual accounts. If you and your spouse have a joint savings account with $200,000, that $200,000 is covered. If you also each have individual checking accounts with $150,000 each, those are covered separately up to $250,000 each.

The FDIC counts each owner's share of a joint account. If a joint account has $300,000 and two equal owners, the FDIC assumes each owner has a $150,000 share, so the full amount is covered. If the owners have unequal shares (for example, one person contributed $200,000 and the other $100,000), the FDIC still covers the full $300,000 as long as the total does not exceed $250,000 per owner's share.

If a joint account exceeds $250,000 and the owners have equal shares, only $250,000 is covered. The extra amount is not protected. This is one reason some couples keep separate accounts in addition to a joint account—to ensure both people's money is fully covered.

Checking the FDIC insurance status of your bank

The FDIC maintains a tool called the Bank Find Suite on its website where you can search any bank by name or location. The search tells you whether the bank is FDIC insured, which FDIC region it belongs to, and when it was last examined. You can also call the FDIC at 1-877-ASK-FDIC (1-877-275-3342) to confirm a bank's status.

If you are moving money to a new bank or opening an account at an unfamiliar institution, take 30 seconds to search the bank's name in the FDIC database before you deposit. This is especially important if you are moving a large sum close to or above $250,000.

Some online banks are FDIC insured even though they have no physical branches. The insurance status depends on whether the online bank is a member of the FDIC, not on whether it has a building you can walk into. Most major online banks are FDIC insured; check their website or call to confirm.

Frequently Asked Questions

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

Only $250,000 is covered by the FDIC. The remaining $50,000 has no protection. To cover the full $300,000, you would need to split it between two different FDIC member banks, with up to $250,000 at each one.

Are CDs at my bank covered by FDIC insurance?

Yes. Certificates of deposit are FDIC insured up to $250,000 per person per bank, just like savings and checking accounts. If you have multiple CDs at the same bank, the total of all of them counts toward the $250,000 limit.

Is my money in a money market fund at my bank covered?

It depends on the type. A money market deposit account (MMDA) at a bank is FDIC insured. A money market mutual fund is not, even if you buy it through your bank. Ask your bank which type you own—the name alone does not always make it clear.

What if I have accounts at two different banks with the same name?

Each bank is insured separately. If you have $250,000 at Bank A and $250,000 at Bank B, both amounts are fully covered because they are at different institutions. The FDIC limit is per bank, not per person across all banks.

Do I need to do anything to make sure my deposits are insured?

No. FDIC insurance is automatic at member banks—you do not need to sign up, pay a fee, or take any action. Your deposits are covered the moment you open the account, as long as the bank is FDIC insured.