Yes, the FDIC protects most savings accounts, but only up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks if the bank fails. A savings account at an FDIC-member bank is protected up to $250,000. If you have more than $250,000 in one savings account at one bank, only the first $250,000 is covered. The rest is not protected.

This protection applies to the account owner, not to the account itself. If you are the sole owner of a savings account, your $250,000 limit is tied to you at that bank. If you own a joint account with someone else, each owner gets their own $250,000 limit at that same bank — so a joint account can be covered up to $500,000 total.

FDIC protection does not cover investment accounts, brokerage accounts, mutual funds, stocks, or bonds held at a bank. It covers only deposit products: savings accounts, checking accounts, money market deposit accounts, and certificates of deposit (CDs).

Key Takeaways

  • The FDIC covers up to $250,000 per depositor per bank for savings accounts, checking accounts, money market accounts, and CDs.
  • Joint account owners each receive their own $250,000 limit at the same bank, so a joint savings account can be insured up to $500,000.
  • Money in investment accounts, stocks, mutual funds, or brokerage accounts held at a bank is not FDIC-insured.
  • You can verify whether your bank is FDIC-insured by searching the FDIC's Bank Find tool on their website.
  • If a bank fails, the FDIC typically transfers your insured deposits to another bank or sends you a check within a few business days.

How the $250,000 limit works across multiple accounts

The $250,000 limit is per depositor per bank, not per account. If you have a savings account and a checking account at the same bank, both accounts are added together to determine your coverage. If your savings account holds $180,000 and your checking account holds $100,000 at the same bank, your total coverage is $280,000 — but only $250,000 is protected. The extra $30,000 is not covered.

If you want to protect more than $250,000 at the same bank, you can open accounts in different ownership categories. A savings account in your name alone is covered separately from a joint savings account you own with a spouse at the same bank. A savings account held in trust for a beneficiary is also covered separately. Each ownership category gets its own $250,000 limit.

The simplest way to protect more than $250,000 is to split your money across different banks. If you keep $250,000 at Bank A and $250,000 at Bank B, both amounts are fully covered because they are at different banks. Each bank's FDIC insurance is separate.

What happens when a bank fails

When an FDIC-member bank fails, the FDIC steps in as the insurer. The agency does not take over the bank's operations — instead, it arranges for another bank to take over the failed bank's deposits, or it pays out the insured amounts directly to depositors.

In most cases, the FDIC transfers your account to another bank within one to three business days. You keep your account number, your debit card continues to work, and your automatic payments keep going. You do not have to do anything. The new bank sends you a letter explaining the transfer.

If no bank is willing to take over the deposits, the FDIC mails you a check for your insured balance. This is rare and usually takes longer — sometimes several weeks — but it does happen. The FDIC has a claims process for depositors who need to prove their account balance if records are unclear.

Accounts and ownership types that change your coverage

The FDIC recognizes different ownership categories, and each one has its own $250,000 limit at the same bank. A single account in your name alone is one category. A joint account with your spouse is a separate category. An account you hold in trust for a child or grandchild is a third category. A payable-on-death (POD) account — where you name a beneficiary to receive the money if you die — is a fourth category.

This means you can have $250,000 in a savings account in your name, $250,000 in a joint savings account with your spouse, and $250,000 in a POD account naming your adult child, all at the same bank, and all three amounts would be fully covered. The coverage does not overlap because the ownership structure is different.

Retirement accounts held at a bank — such as a traditional IRA or Roth IRA in a savings account or CD — are also covered separately, up to $250,000 per account type per bank. A traditional IRA and a Roth IRA at the same bank each get their own $250,000 limit.

How to check if your bank is FDIC-insured

Not every bank is FDIC-insured. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. Some online banks and smaller institutions may not be members. You can search the FDIC's Bank Find tool on the FDIC website to confirm your bank's membership status. The tool lets you search by bank name or location.

FDIC-member banks display the FDIC logo on their website and in their branches. If you are unsure, ask your bank directly or use the Bank Find tool. Deposits at non-member banks are not insured by the FDIC, though some may carry private insurance.

The FDIC website also has a calculator that helps you determine how much of your money is covered based on your account types and ownership structure. You enter your account balances and ownership categories, and the tool shows you exactly how much is insured.

What the FDIC does not cover

FDIC insurance does not cover safe deposit boxes or their contents. If you rent a safe deposit box at a bank and store jewelry, documents, or cash inside, that property is not protected if the bank fails. The bank may be liable for negligence, but the FDIC does not insure the contents.

Investments held at a bank — stocks, bonds, mutual funds, brokerage accounts — are not FDIC-insured. If you buy a stock through your bank's brokerage arm, that stock is not covered. The brokerage may carry Securities Investor Protection Corporation (SIPC) insurance instead, which covers brokerage accounts up to $500,000 but works differently than FDIC insurance.

Cashier's checks, money orders, and traveler's checks issued by the bank are not covered. Wire transfers are not covered. Funds held in escrow by a real estate agent or attorney are not covered by the FDIC, though they may be covered by other protections depending on the state.

Frequently Asked Questions

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

Only $250,000 is FDIC-insured. The remaining $50,000 is not protected. To protect the full $300,000, you would need to move $50,000 to a savings account at a different FDIC-member bank, or open a joint account or POD account at the same bank if you have someone to name as a co-owner or beneficiary.

Does FDIC insurance cover my money market account?

Yes, if it is a money market deposit account (MMDA) held at an FDIC-member bank. Money market deposit accounts are covered up to $250,000 per depositor per bank. Money market mutual funds sold through a bank are not FDIC-insured — they are securities and may be covered by SIPC instead.

If my spouse and I have a joint savings account, are we each covered for $250,000?

Yes. Joint account owners each receive their own $250,000 limit, so a joint account can be insured up to $500,000 total. This applies only to accounts where both owners have equal rights to the money. Accounts where one person is merely authorized to withdraw on behalf of the other do not receive this protection.

What if I have accounts at two different branches of the same bank?

Branches of the same bank are treated as one bank for FDIC purposes. Your coverage limit is $250,000across all accounts at all branches of that bank combined, not per branch. The FDIC does not count branches separately.

Is my money protected if the bank is hacked or there is fraud?

FDIC insurance covers bank failure only, not fraud or theft. If someone hacks your account or steals your debit card information, that is a separate issue handled by your bank's fraud protection policies and federal consumer protection laws. Contact your bank immediately if you suspect fraud.