FDIC insurance covers up to $250,000 per depositor, per bank, per account category

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks up to $250,000 per person, per institution. That limit applies to each account category separately — so you can have $250,000 in a savings account and another $250,000 in a checking account at the same bank and both are fully covered. The $250,000 figure has been in place since 2010 and applies to all FDIC member banks.

The coverage is automatic. You do not need to sign up, pay a fee, or do anything to activate it. If your bank fails, the FDIC steps in and deposits the insured amount directly into your account at another bank, usually within one to three business days. If you have more than $250,000 at a single bank in a single account category, only the first $250,000 is protected — the rest is at risk if the bank closes.

The key word is per bank. If you have $200,000 at Bank A and $200,000 at Bank B, both amounts are fully insured because they are at different institutions. But if you have $300,000 at Bank A in one savings account, only $250,000 is covered. The FDIC does not combine accounts across different banks — each bank is a separate insurance unit.

Key Takeaways

  • FDIC insurance covers $250,000 per person, per bank, per account category, and this coverage is automatic at all member banks.
  • Different account categories at the same bank are insured separately, so a savings account and checking account each get their own $250,000 limit.
  • Joint accounts are insured separately from individual accounts, and each account holder's share is covered up to $250,000.
  • Deposits over $250,000 at a single bank in a single category are not insured, so spreading money across multiple banks protects larger balances.
  • You can check whether a bank is FDIC-insured and see your coverage limits using the FDIC's BankFind tool on their website.

How account categories affect your coverage

The FDIC divides accounts into separate categories, and each category has its own $250,000 limit at the same bank. A single account (in your name only) is one category. A joint account (shared with another person) is a separate category. A retirement account (IRA, Roth IRA, SEP-IRA) is another category. A trust account is yet another.

This means you can have $250,000 in a savings account under your name, $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 insured. The categories do not mix — the joint account limit does not count against your individual account limit.

Money market accounts and certificates of deposit (CDs) are treated as savings accounts for FDIC purposes, so they share the $250,000 limit with your regular savings account. If you have $150,000 in a savings account and $120,000 in a CD at the same bank, only $250,000 total is insured (the first $250,000 of the combined balance). Checking accounts are a separate category with their own $250,000 limit.

Joint accounts and coverage for multiple owners

A joint account is insured up to $250,000 per account holder, not $250,000 total. If you and your spouse have a joint savings account with $400,000, the FDIC covers $250,000 of your share and $250,000 of your spouse's share — the full $400,000 is protected. The bank must have both names on the account for this to apply.

If three people own a joint account together, each person's share is covered up to $250,000. So a joint account with three owners and $600,000 would be fully insured if each owner has an equal share ($200,000 each). However, if the ownership shares are unequal, the FDIC insures based on each person's ownership percentage, up to $250,000 per person.

This rule applies only to true joint accounts where both names appear on the account at the bank. Adding someone's name to your account for convenience (sometimes called a "convenience account") may not may have access to for this protection — the FDIC treats it as a single-owner account. Check with your bank about how the account is registered if you are unsure.

Retirement accounts and special coverage

Retirement accounts — including traditional IRAs, Roth IRAs, SEP-IRAs, and SIMPLE IRAs — are insured separately from regular savings and checking accounts. Each retirement account is covered up to $250,000 per person, per bank. If you have a traditional IRA and a Roth IRA at the same bank, they share the $250,000 limit because they are both retirement accounts in your name.

However, if you have a traditional IRA at Bank A and a Roth IRA at Bank B, each is covered up to $250,000 because they are at different banks. The FDIC does not combine retirement accounts across institutions.

Trust accounts (accounts held in trust for a beneficiary) are also a separate category. A revocable living trust account is insured up to $250,000 per beneficiary, per bank. This means if you set up a trust account naming three beneficiaries, and the account holds $600,000, the FDIC covers $250,000 for each beneficiary's share — the full amount is protected. The rules for trust coverage are more complex than for other account types, so contact your bank or the FDIC directly if you have a trust account.

What is not covered by FDIC insurance

FDIC insurance covers deposits only — money you have placed in the bank. It does not cover investments, even if they are held at an FDIC member bank. Stocks, bonds, mutual funds, and brokerage accounts are not FDIC-insured. If you buy a stock through your bank's brokerage service, that stock is not protected by FDIC insurance.

Safe deposit boxes are also not covered. If you store valuables, jewelry, or documents in a safe deposit box at your bank and the bank fails, the FDIC does not reimburse you for the contents. Safe deposit boxes are the bank's responsibility, not the FDIC's.

Foreign currency deposits are not covered. If you deposit euros, pounds, or other foreign currency at a U.S. bank, that money is not FDIC-insured. Accrued interest on deposits is covered up to the $250,000 limit, but only if the total (principal plus interest) does not exceed the limit.

How to check if your bank is FDIC-insured

Not all banks are FDIC members. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC, though the coverage limits are similar. To confirm whether a specific bank is FDIC-insured, use the FDIC BankFind tool on the FDIC website. Enter the bank's name and state, and the tool will show you whether it is a member, what its insurance certificate number is, and when it was last examined.

You can also call the FDIC directly at 1-877-ASK-FDIC (1-877-275-3342) to confirm a bank's status. The FDIC website also has a calculator that lets you enter your account details and see exactly how much of your balance is covered at a specific bank.

FDIC member banks are required to display the FDIC logo and insurance notice in their branches and on their websites. If you do not see the FDIC logo or mention of FDIC insurance, ask a bank employee directly whether the bank is insured. Some banks advertise "FDIC-insured" but are actually credit unions insured by the NCUA — the distinction matters for coverage purposes.

What happens if a bank fails

If an FDIC member bank closes, the FDIC takes over and protects your insured deposits. The FDIC does not require you to file a claim or take any action. Within one to three business days, your insured balance (up to $250,000 per category) is transferred to another bank, or the FDIC issues you a check for the insured amount.

The FDIC pays out insured deposits in the order they were received, so if you have multiple accounts at the same bank, each account is processed separately according to its category. You will receive your money even if the bank's assets do not cover all deposits — the FDIC has a fund backed by member bank premiums and, if necessary, borrowing authority from the U.S. Treasury.

If your balance exceeds $250,000 in a single category at a failed bank, you become an unsecured creditor for the amount over the limit. This means you may recover some or all of the uninsured portion if the bank's assets are sold, but there is no may provide. In practice, uninsured depositors often recover little or nothing.

Frequently Asked Questions

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

Only $250,000 is insured. The remaining $50,000 is not protected by the FDIC. To protect the full $300,000, you could move $50,000 to a savings account at a different FDIC member bank, or open a joint account or retirement account at the same bank if you are may be able to access — each category has its own $250,000 limit.

Are money market accounts and CDs covered by FDIC insurance?

Yes, both are covered up to $250,000 per person, per bank. However, they are grouped with savings accounts in the same category, so if you have $150,000 in a savings account and $120,000 in a CD at the same bank, only $250,000 total is insured. Checking accounts are a separate category with their own $250,000 limit.

Is my IRA covered separately from my regular savings account?

Yes. IRAs are a separate account category, so you can have $250,000 in an IRA and $250,000 in a savings account at the same bank, and both amounts are fully insured. However, different types of IRAs (traditional and Roth) share the $250,000 limit if they are both at the same bank.

What if I have accounts at multiple banks — does each bank have its own $250,000 limit?

Yes. FDIC insurance is per bank, so $250,000 at Bank A and $250,000 at Bank B are both fully covered. You can protect larger balances by spreading deposits across multiple FDIC member banks, with each bank covering up to $250,000 per account category.

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

No. FDIC insurance is automatic at all member banks — you do not need to sign up or pay a fee. Make sure your bank is FDIC-insured by checking the FDIC BankFind tool, and keep your balance at or below $250,000 per category per bank if you want full coverage.