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

The Federal Deposit Insurance Corporation (FDIC) protects your money if your bank fails. The standard coverage limit is $250,000 per depositor at each bank. That means if you have $250,000 or less in a checking account at one bank, all of it is covered. If you have $300,000, the FDIC covers $250,000 and you lose the remaining $50,000.

The $250,000 limit applies to each account category separately. This is the part that confuses most people. You can have $250,000 in a checking account and another $250,000 in a savings account at the same bank, and both are fully covered. But if you have $300,000 in checking and $200,000 in savings at the same bank, only the first $250,000 of checking is protected—the savings account is separate and fully covered.

If you have money at multiple banks, each bank's coverage is separate. You could have $250,000 at Bank A and $250,000 at Bank B, and both amounts are fully covered. The FDIC does not combine your accounts across different banks.

Key Takeaways

  • The FDIC covers up to $250,000 per depositor, per bank, per account category—so $250,000 in checking and $250,000 in savings at the same bank are both fully protected.
  • Money in different account categories (checking, savings, money market, CDs) counts separately toward the $250,000 limit at each bank.
  • If you have accounts at multiple banks, each bank's $250,000 limit applies independently—spreading money across banks increases your total coverage.
  • Joint accounts are covered separately from individual accounts, so a joint checking account and an individual checking account at the same bank each get $250,000 of coverage.
  • The FDIC does not cover stocks, bonds, mutual funds, or money market funds—only deposit accounts like checking, savings, and CDs.

How account categories affect your coverage

The FDIC groups accounts into separate categories, and you get $250,000 of coverage in each category at the same bank. The main categories are: single accounts (in your name only), joint accounts (shared ownership), retirement accounts (IRAs and similar), and trust accounts (money held for someone else's benefit).

A single checking account and a single savings account at the same bank are both in the "single account" category, so they share one $250,000 limit. If you have $150,000 in checking and $150,000 in savings, your total coverage is $250,000—the FDIC covers the first $250,000 and leaves $50,000 uninsured.

A joint account is a different category. If you and your spouse have a joint checking account with $300,000, the FDIC covers $250,000 of it. If you also have an individual checking account at the same bank with $100,000, that individual account is in a separate category and is fully covered. You now have $250,000 covered in the joint account and $100,000 covered in the individual account—$350,000 total at that bank.

Retirement accounts (IRAs, SEP-IRAs, SIMPLE IRAs) are their own category and get $250,000 of coverage separate from your other accounts. A revocable trust account is also separate. If you have named a beneficiary on a trust account, the FDIC may cover up to $250,000 per beneficiary, though the rules are more complex—contact your bank or the FDIC to confirm coverage on trust accounts.

What happens when you exceed the $250,000 limit

If you have more than $250,000 in a single account category at one bank, the FDIC covers only the first $250,000. The money above that is uninsured and at risk if the bank fails. You do not lose the money immediately—it sits in your account—but if the bank closes, you will recover only the insured portion.

The most common way people exceed the limit is by keeping a large emergency fund or business account at one bank. If you have $400,000 in a savings account, $150,000 is uninsured. The FDIC will not warn you or move the money—it is your responsibility to know your coverage.

You can check your coverage using the FDIC's Electronic Deposit Insurance Estimator (EDIE), a free tool on the FDIC website. You enter your bank name, account type, and balances, and EDIE tells you exactly how much is covered. This is the most reliable way to confirm your protection, especially if you have complex account structures.

Spreading money across banks to increase coverage

If you have more than $250,000 to keep safe, you can open accounts at different banks and each bank's $250,000 limit applies separately. You could have $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C, and all $750,000 would be covered by the FDIC.

The banks do not have to be large national banks. Credit unions are also insured by the FDIC (technically by the National Credit Union Administration, or NCUA, which uses the same $250,000 limit). You can spread money across credit unions as well.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to automatically split large deposits across multiple banks while keeping a single account number. You deposit money once, and IntraFi distributes it to partner banks in $250,000 chunks, each fully insured. You receive one statement and one login. This is useful if you have $1 million or more and do not want to manage accounts at five different banks.

What the FDIC does not cover

FDIC coverage applies only to deposit accounts: checking, savings, money market deposit accounts, and certificates of deposit (CDs). It does not cover stocks, bonds, mutual funds, or brokerage accounts, even if they are held at a bank. If your bank's investment division sells you a mutual fund, that mutual fund is not FDIC-insured.

Safe deposit boxes are also not covered. If you keep cash, jewelry, or documents in a safe deposit box at a bank and the bank fails, the FDIC does not reimburse you. Safe deposit boxes are your responsibility.

Cashier's checks, money orders, and traveler's checks issued by the bank are not covered either. Once the bank issues the check, it is no longer a deposit account—it is a payment instrument.

Interest earned on an account is covered up to the $250,000 limit, but only if the interest was credited to the account before the bank failed. Interest that accrued but was not yet paid is not covered.

Coverage for joint accounts and trust accounts

A joint account is covered separately from individual accounts. If you and your spouse have a joint savings account with $300,000, the FDIC covers $250,000. If you each also have individual savings accounts at the same bank, each individual account gets its own $250,000 of coverage. The joint account does not reduce the coverage on your individual account.

For a joint account, the $250,000 limit applies to the account as a whole, not per person. If three people own a joint account together with $300,000, the FDIC still covers only $250,000 total—not $250,000 per person. The FDIC does not split joint account coverage among the owners.

Trust accounts (also called payable-on-death or POD accounts) have different rules depending on how they are set up. If you name one beneficiary on a trust account, the FDIC covers up to $250,000. If you name multiple beneficiaries, the coverage may be higher—up to $250,000 per beneficiary—but only if the account is properly titled and the beneficiary designation is clear. The rules are complex enough that you should contact your bank or the FDIC directly to confirm coverage on a trust account.

How to confirm your FDIC coverage

The FDIC's Electronic Deposit Insurance Estimator (EDIE) is the official tool for checking your coverage. Go to the FDIC website, select your bank from the list, enter your account types and balances, and EDIE calculates exactly how much is covered. It takes five minutes and removes all guesswork.

You can also call your bank and ask how much of each account is FDIC-insured. Banks are required to disclose this information, though not all customer service representatives know the rules well. If you get a vague answer, ask to speak with someone in the deposit insurance department or compliance team.

If your bank fails, the FDIC takes over and contacts you within a few days. You do not have to file a claim—the FDIC automatically reimburses covered deposits. Reimbursement usually happens within one to three business days, though it can take longer if the bank's records are complicated.

Frequently Asked Questions

Does FDIC coverage reset every year?

No. The $250,000 limit is permanent and does not reset. If you have $250,000 in a savings account, that entire amount is covered for as long as the money stays in that account at that bank. The coverage does not expire or renew.

If I have $300,000 in one account, can I move $50,000 to a different account to get it covered?

No. The FDIC looks at your accounts as they existed when the bank failed, not at transfers made after the failure. If you move money to get coverage, you are too late—the coverage is determined at the moment of failure. However, moving money to a different bank or account category before a failure does increase your coverage going forward.

Are savings accounts and money market accounts covered separately?

No. Savings accounts and money market deposit accounts are both in the "savings" category and share one $250,000 limit at each bank. If you have $150,000 in savings and $150,000 in a money market account at the same bank, your total coverage is $250,000, not $500,000.

What if my bank is bought by another bank?

If Bank A fails and Bank B buys it, your accounts at the merged bank are still covered up to $250,000 per category. However, if you already had accounts at Bank B before the merger, your old Bank B accounts and your new accounts from the merger may be combined for coverage purposes during a transition period. Contact the FDIC or the new bank to confirm your coverage after a merger.

Does FDIC coverage apply if I am not a U.S. citizen?

Yes. FDIC coverage applies to anyone with a deposit account at an FDIC-insured bank, regardless of citizenship or immigration status. You do not need a Social Security number to be covered, though you do need one to open most bank accounts.