The standard FDIC insurance limit is $250,000 per depositor, per bank, per account category

The Federal Deposit Insurance Corporation (FDIC) covers up to $250,000 in a single savings account at one bank. This means if your bank fails, the FDIC will reimburse you for deposits up to that amount. The $250,000 limit applies to each account category separately — so you can have $250,000 covered in a savings account and another $250,000 covered in a checking account at the same bank, and both are fully protected.

The limit has been $250,000 since 2010. Before that, it was $100,000. This higher limit was made permanent after the 2008 financial crisis. Money market accounts and savings accounts are treated the same way under FDIC rules — both fall under the "savings deposits" category and share the same $250,000 limit at each bank.

If you have more than $250,000 at a single bank, the amount over that limit is not covered. You would lose access to those funds if the bank failed. This is why people with large sums often split deposits across multiple banks.

Key Takeaways

  • The FDIC covers $250,000 per person per bank per account category, so deposits over that amount at one bank are not protected.
  • Different account categories at the same bank each get their own $250,000 limit — a savings account and a checking account are counted separately.
  • Joint accounts, retirement accounts, and trust accounts have separate coverage limits from individual accounts at the same bank.
  • Online banks and credit unions may have different insurance rules, so check with your specific institution about what is covered.
  • The FDIC does not cover investments like stocks, bonds, or mutual funds, even if you buy them through your bank.

How account ownership type changes your coverage

The FDIC insures based on account ownership, not just the bank. A joint account where you and another person both own the money is insured separately from an individual account you hold alone at the same bank. Each person's share of a joint account is covered up to $250,000, so a joint account with two owners can have up to $500,000 covered — $250,000 for each owner's half.

Retirement accounts like traditional IRAs and Roth IRAs get their own $250,000 limit separate from your regular savings account. A revocable trust account (where you name beneficiaries) also has its own $250,000 limit. If you have an IRA, a checking account, and a savings account all at the same bank, each one is insured up to $250,000.

Irrevocable trust accounts are treated differently. The FDIC covers up to $250,000 per beneficiary of the trust, not per account. If your trust names three beneficiaries, the trust account can have up to $750,000 covered. This gets complicated quickly, so if you use trusts, contact your bank directly to confirm what is covered.

What happens when you exceed the limit at one bank

If you have $300,000 in a savings account at Bank A, only $250,000 is insured. The remaining $50,000 is uninsured. If Bank A fails, you get back $250,000 and lose the other $50,000. The FDIC does not cover the overage, and you cannot recover it from the bank's remaining assets — you would be an unsecured creditor in the bankruptcy.

The solution is to move money to a different bank. If you put $150,000 at Bank A and $150,000 at Bank B, both amounts are fully covered because each bank has its own $250,000 limit. You can use the FDIC's online tool called the Electronic Deposit Insurance Estimator (EDIE) to calculate your coverage across multiple banks and account types before you deposit money.

Some people use a service called IntraFi (formerly Promontory Interbank Network) that automatically spreads deposits across multiple FDIC-insured banks. You deposit money into one account, and IntraFi splits it so that each bank holds less than $250,000 in your name. This keeps all your money insured without you having to manage multiple bank accounts yourself.

Coverage that does not apply to bank accounts

The FDIC does not cover stocks, bonds, mutual funds, or exchange-traded funds (ETFs), even if you buy them through your bank's brokerage service. These investments are protected by a different system called SIPC (Securities Investor Protection Corporation), which covers up to $500,000 per account but works differently than FDIC insurance.

Safe deposit boxes are also not covered by FDIC insurance. If you keep cash, jewelry, or documents in a safe deposit box at your bank and the bank fails, the FDIC does not reimburse you for the contents. The bank may be liable for negligence, but that is a separate legal claim, not FDIC coverage.

Cryptocurrency held at a bank is not FDIC-insured. Some banks now offer cryptocurrency services, but those holdings fall outside the FDIC's scope. Credit unions use a similar system called NCUA (National Credit Union Administration) with the same $250,000 limit, but the two systems do not overlap — money at a credit union is not FDIC-insured.

How to check your coverage across multiple banks

The FDIC's Electronic Deposit Insurance Estimator (EDIE) is a free online tool where you enter your deposits and account types, and it tells you exactly how much is covered at each bank. You can find it on the FDIC website. EDIE accounts for joint accounts, retirement accounts, and trust accounts, so it gives you an accurate picture of your total coverage.

You can also call your bank directly and ask how much of your deposits are insured. The bank should be able to tell you based on your account setup. If you have multiple accounts at the same bank (savings, checking, money market), ask the bank to confirm that each one has its own $250,000 limit.

If you are moving money between banks to stay within coverage limits, do it before you deposit the funds. Once money is at a bank, it is covered or it is not — moving it later does not change what was already insured. Plan your deposits with the $250,000 limit in mind from the start.

What happens if a bank fails and you are covered

If an FDIC-insured bank fails, the FDIC takes over and pays out covered deposits. The process usually takes a few business days. You will receive a check or a wire transfer for the amount covered (up to $250,000 per account category). The FDIC has a track record of paying out quickly — in recent bank failures, most depositors received their money within one to three business days.

You do not have to do anything to receive your payout. The FDIC automatically identifies your account and calculates what you are owed based on the coverage rules. If your account was over the limit, you will receive $250,000 and nothing more. The bank's failure does not affect your coverage calculation — the FDIC pays based on what was in the account at the time of failure.

The FDIC maintains a database of failed banks and payouts. You can search it on their website if you want to see historical examples of how payouts were handled. Since 2008, most bank failures have been small regional banks, and FDIC payouts have been routine.

Special cases: retirement accounts and trust accounts

Retirement accounts (IRAs, SEP-IRAs, SIMPLE IRAs) are each covered up to $250,000 at each bank, separate from your other accounts. 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 fully covered. The FDIC treats each type of retirement account as its own category.

Revocable trust accounts (also called payable-on-death accounts) are covered up to $250,000 per beneficiary you name. If you set up a trust account and name your two children as beneficiaries, the account can hold up to $500,000 and be fully covered — $250,000 per child. The FDIC requires the trust to be revocable (meaning you can change it) for this rule to apply.

Irrevocable trusts work differently and are more complex. If you have an irrevocable trust, contact your bank or an attorney to understand your coverage, because the calculation depends on the specific terms of the trust document.

Frequently Asked Questions

If I have $300,000 at one bank, how much will I get back if the bank fails?

You will receive $250,000. The remaining $50,000 is uninsured and you will not recover it from the FDIC. To protect the full $300,000, you would need to split it across two banks — for example, $250,000 at Bank A and $50,000 at Bank B.

Does FDIC insurance cover my savings account at an online bank?

Yes, if the online bank is FDIC-insured. Most online banks are, but you should verify by checking the bank's website or calling them. The FDIC website has a tool called BankFind where you can search for any bank and confirm it is insured. Coverage limits are the same as at traditional banks — $250,000 per account category.

Are credit union accounts covered by FDIC insurance?

No. Credit unions are insured by the NCUA (National Credit Union Administration), not the FDIC. NCUA coverage works the same way — $250,000 per account category per member per credit union — but it is a separate system. If you have money at both a bank and a credit union, each is insured under its own system.

Can I get more coverage by opening accounts under different names at the same bank?

No. The FDIC tracks coverage by depositor, not by account name. If you open an account in your name and another in a nickname or variation of your name, the FDIC will treat them as the same person and combine them under the $250,000 limit. Joint accounts and trust accounts are exceptions because they have different ownership structures.

What if I have a joint account with my spouse — is it covered twice?

Yes. A joint account is covered up to $250,000 per owner. If you and your spouse own a joint account together, the FDIC covers up to $250,000 for your half and up to $250,000 for your spouse's half, for a total of $500,000 coverage on that one account. Each owner's share is insured separately.