Yes, most traditional savings accounts at banks are FDIC insured up to $250,000 per depositor per bank

A traditional savings account at a bank that holds FDIC insurance will protect your money up to $250,000 if the bank fails. The key word is "bank" — not all financial institutions that hold savings accounts carry FDIC insurance. Credit unions use a different system called NCUA insurance. Online banks, brick-and-mortar banks, and regional banks all use FDIC insurance if they are members, which most are.

The $250,000 limit applies per depositor, per bank, per account category. That means if you have $200,000 in a savings account and $100,000 in a checking account at the same FDIC-insured bank, both are covered because they are different account types. But if you have $300,000 in one savings account at one bank, only $250,000 is protected.

You can check whether a specific bank carries FDIC insurance by searching the FDIC's Bank Find tool on their website. Type in the bank name and your state, and the tool will show you whether it is an FDIC member and what coverage applies to your accounts there.

Key Takeaways

  • FDIC insurance covers traditional savings accounts at member banks up to $250,000 per depositor per bank, regardless of whether the bank is online or in-person.
  • Credit unions are not FDIC insured; they use NCUA insurance instead, which covers up to $250,000 under the same structure.
  • The $250,000 limit resets for each account type (savings, checking, money market) at the same bank, so you can have $250,000 in savings and $250,000 in checking both covered.
  • Joint accounts are insured separately from individual accounts, so a joint savings account gets its own $250,000 coverage.
  • You can verify a bank's FDIC membership using the FDIC's Bank Find tool before opening an account.

How the $250,000 limit works across multiple accounts

The FDIC insures each account category separately at the same bank. If you have a savings account, a checking account, and a money market account all at the same FDIC-insured bank, each one gets $250,000 of coverage. That means you could have $750,000 total across those three account types and be fully protected.

But if you have two savings accounts at the same bank, they are combined for insurance purposes. If one has $150,000 and the other has $120,000, only $250,000 total is covered — the other $20,000 is not. The FDIC counts all accounts of the same type at the same bank as one account for the limit.

Joint accounts are treated as a separate category. If you have a joint savings account with your spouse at an FDIC-insured bank, it gets its own $250,000 coverage. Your individual savings account at the same bank gets another $250,000. This is one of the few ways to increase your coverage at a single bank.

Which banks actually carry FDIC insurance

Most banks in the United States are FDIC members, but not all. Large national banks like Chase, Bank of America, Wells Fargo, and Citibank all carry FDIC insurance. Regional banks and most online banks (Ally, Marcus, Discover, Charles Schwab Bank) are also FDIC insured. The FDIC publishes a complete list of member banks on their website.

Some financial institutions that look like banks are not FDIC insured. Investment firms, brokerage houses, and money market funds do not carry FDIC insurance — they use different protections. If you are unsure whether a place that holds your money is FDIC insured, search for it in the Bank Find tool. If it does not appear, it is not an FDIC member.

When you open a savings account, the bank is required to tell you whether it is FDIC insured. This information appears in the account agreement or disclosure documents. If you do not see it mentioned, ask the bank directly before you deposit money.

What FDIC insurance does and does not cover

FDIC insurance covers the balance in your account if the bank fails and cannot return your money. It does not cover losses from fraud, theft, or poor investment decisions. If someone hacks your account and transfers money out, FDIC insurance does not reimburse you — that is a separate matter handled by the bank's fraud department and potentially law enforcement.

FDIC insurance also does not cover investment products sold through the bank, such as stocks, bonds, or mutual funds. If you buy a mutual fund through your bank's brokerage service and the fund loses value, FDIC insurance does not protect that loss. Those investments are covered by SIPC (Securities Investor Protection Corporation) instead, which is a different system with different limits.

Interest earned on your account is covered by FDIC insurance as long as the total (principal plus accrued interest) does not exceed $250,000. You do not need to do anything special to activate this coverage — it is automatic at any FDIC member bank.

How to verify your bank's FDIC status before opening an account

Go to the FDIC's Bank Find tool at ifdic.gov and search by bank name and state. The tool will show you the bank's FDIC certificate number, the date it became a member, and a summary of what coverage applies. If the bank does not appear in the search results, it is not FDIC insured.

You can also call the FDIC's customer service line at 1-877-275-3342 to ask about a specific bank. They can tell you whether it is a member and what coverage your accounts would have. This is useful if you are opening an account at a smaller regional bank or if you want to confirm coverage before moving a large sum of money.

When you open the account, the bank will provide you with a disclosure statement that lists the FDIC coverage that applies. Read this document carefully, especially if you plan to keep more than $250,000 at that bank. It will explain how your specific account type is covered and what the limits are.

What happens if an FDIC-insured bank fails

If an FDIC member bank fails, the FDIC steps in as the insurer. You do not need to file a claim or contact anyone — the FDIC automatically protects your covered deposits. The bank's assets are liquidated, and the FDIC uses that money to pay back depositors up to the $250,000 limit per account category.

The FDIC typically resolves a bank failure within days or weeks. In most cases, your money is available to you through a new bank or a transfer to another institution very quickly. The FDIC's goal is to minimize disruption, so they often arrange for another bank to take over the failed bank's operations and customer accounts.

Bank failures are rare in the United States. The FDIC has been in operation since 1933, and the insurance system has protected depositors through multiple financial crises. The last significant wave of bank failures was during the 2008 financial crisis, and even then, FDIC insurance protected depositors who had money within the limits.

Coverage for special account types and situations

Retirement accounts (IRAs, SEP-IRAs, and similar accounts) held at FDIC banks get their own $250,000 coverage separate from your regular savings account. This means you could have $250,000 in a traditional IRA and $250,000 in a savings account at the same bank, and both would be fully covered.

Trust accounts and accounts held for a minor also have separate coverage categories. If you hold money in trust for someone else, that account is insured separately from your personal accounts. The rules for these special accounts are more complex, so if you are setting up a trust account or custodial account, ask the bank how FDIC coverage applies.

Accounts held in different names at the same bank are covered separately. If you and your spouse each have individual savings accounts at the same FDIC bank, each account gets $250,000 of coverage. A joint account between you and your spouse gets an additional $250,000. This is one reason some people spread money across multiple account types or multiple banks.

Frequently Asked Questions

If I have $300,000 in a savings account at an FDIC bank, what happens to the extra $50,000?

Only $250,000 is covered by FDIC insurance. The remaining $50,000 is not protected if the bank fails. To protect all of it, you would need to move the extra $50,000 to a different FDIC-insured bank or into a different account category (like a money market account) at the same bank, since each category has its own $250,000 limit.

Are online savings accounts FDIC insured?

Yes, if the online bank is an FDIC member. Most online banks (Ally, Marcus, Discover, Charles Schwab Bank) are FDIC insured and offer the same $250,000 coverage as traditional banks. Check the bank's website or use the FDIC Bank Find tool to confirm membership before opening an account.

What is the difference between FDIC and NCUA insurance?

FDIC insures banks; NCUA insures credit unions. Both systems cover up to $250,000 per depositor per institution. The coverage limits and categories are similar, but they are separate systems. If your money is at a credit union, it is NCUA insured, not FDIC insured.

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

No. FDIC insurance only covers losses when the bank itself fails. If your account is hacked or someone steals your debit card, that is a fraud matter handled by the bank's fraud department and law enforcement, not FDIC insurance. Report fraud to your bank immediately.

Can I have more than $250,000 covered at one bank?

Yes, if you use multiple account categories or special account types. A savings account, checking account, and money market account each get $250,000. A joint account gets another $250,000. An IRA gets another $250,000. This way, you can have over $1 million covered at a single FDIC bank.