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

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks if the bank fails. The standard coverage limit is $250,000 per depositor, per bank, per ownership category. This means if you have $250,000 or less in a single account at one bank, all of it is covered. If you have $300,000 in that same account, only $250,000 is insured; the extra $50,000 is not.

The $250,000 limit applies to the total of all deposits you own in the same ownership category at the same bank. If you have a checking account with $100,000 and a savings account with $150,000 at the same bank, both under your name alone, the FDIC covers only $250,000 total — not $250,000 per account. The second $100,000 is uninsured.

The ownership category matters. Money in a joint account is insured separately from money in an account in your name alone. Money in a retirement account is insured separately from money in a regular account. This means you can have $250,000 covered in your individual account, another $250,000 covered in a joint account with your spouse at the same bank, and still have both fully insured.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor, per bank, per ownership category — anything above that is not covered if the bank fails.
  • All your deposits in the same ownership category at the same bank count toward the $250,000 limit, even if they are in separate accounts.
  • Different ownership categories — individual, joint, retirement, trust, and others — each have their own $250,000 limit at the same bank.
  • If you have more than $250,000 to protect at one bank, you can split money across different ownership categories or open accounts at different FDIC-member banks.
  • The FDIC website has a tool called the Electronic Deposit Insurance Estimator (EDIE) that shows exactly how much of your deposits are covered.

How the $250,000 limit works across multiple accounts at one bank

The FDIC does not count each account separately. It adds up all deposits you own in the same ownership category at the same bank and applies the $250,000 limit to the total. If you have three savings accounts at Bank A, all in your name, the FDIC treats them as one pool. If that pool totals $400,000, only $250,000 is insured.

This rule applies even if the accounts serve different purposes or have different account numbers. A money market account, a savings account, and a checking account all in your name at the same bank are all counted together. The FDIC does not care what you call the account or what you use it for — only the ownership category matters.

If you want to protect more than $250,000 at one bank, you have two main options: open accounts in different ownership categories, or move money to a different FDIC-member bank. Many people use both strategies.

Ownership categories that each get their own $250,000 limit

The FDIC recognizes several ownership categories. Each one has its own $250,000 limit at the same bank. The main categories are:

  • Single ownership: An account in your name alone.
  • Joint ownership: An account owned by two or more people, each with the right to withdraw the full balance. Each co-owner is insured for up to $250,000 of their share.
  • Retirement accounts: IRAs, Roth IRAs, SEP IRAs, and similar retirement accounts. These are insured separately from other accounts you own.
  • Revocable trust accounts: Accounts set up as a trust that you can change or cancel during your lifetime. Coverage depends on the number of beneficiaries.
  • Irrevocable trust accounts: Trusts you cannot change. Coverage is $250,000 per beneficiary, up to a limit.
  • Accounts for a deceased person: Deposits held in the name of someone who has died are insured separately for up to six months after death.

If you have $250,000 in a checking account in your name and $250,000 in a joint savings account with your spouse at the same bank, both are fully covered. The joint account is a different ownership category, so it has its own $250,000 limit.

Joint accounts and how coverage works for co-owners

A joint account is insured up to $250,000 total, not per person. If you and your spouse have a joint account with $400,000, only $250,000 is covered. The FDIC does not split the coverage between you — it covers the account itself up to the limit.

However, if you each have separate individual accounts at the same bank, each account is insured up to $250,000. So you could have $250,000 in your individual account, your spouse could have $250,000 in their individual account, and you could have $250,000 in a joint account — all at the same bank, all fully covered.

If you are married and want to protect more than $250,000 in joint funds, you can open joint accounts at different banks. A joint account at Bank A is insured separately from a joint account at Bank B.

Retirement accounts and their separate coverage

IRAs, Roth IRAs, SEP IRAs, and other retirement accounts are insured separately from regular deposits. This means you can have $250,000 in a regular savings account and another $250,000 in an IRA at the same bank, and both are fully covered.

If you have multiple retirement accounts at the same bank — for example, a traditional IRA and a Roth IRA — the FDIC adds them together and applies a single $250,000 limit to the total. You cannot have $250,000 in a traditional IRA and $250,000 in a Roth IRA at the same bank and expect both to be fully covered; only $250,000 of the combined total is insured.

Retirement accounts at different banks are insured separately. You could have $250,000 in an IRA at Bank A and $250,000 in an IRA at Bank B, and both would be fully covered.

What happens if your deposit exceeds the coverage limit

If you have more than $250,000 in a single ownership category at one bank, the amount over $250,000 is not insured by the FDIC. If the bank fails, you will lose that uninsured portion. The bank's failure does not trigger any special process — the FDIC simply does not cover it.

This is why people with large deposits often split their money across multiple banks or multiple ownership categories. If you have $500,000 to deposit, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. Or you could put $250,000 in an individual account and $250,000 in a joint account at the same bank, and both would be covered.

The FDIC does not automatically move money or notify you if you exceed the limit. It is your responsibility to track your deposits and make sure you stay within the coverage limits if you want full protection.

Using the FDIC's deposit insurance calculator

The FDIC provides a free tool called the Electronic Deposit Insurance Estimator (EDIE) that shows exactly how much of your deposits are covered. You enter information about each account — the bank, the ownership category, the balance, and the type of account — and EDIE calculates the coverage for each one.

You can access EDIE on the FDIC website at fdic.gov. The tool is designed for individual use and does not require you to create an account or provide personal information beyond what you enter into the calculator. It gives you an estimate based on current FDIC rules, though the actual coverage information happens only if the bank fails.

EDIE is useful if you have deposits at multiple banks, multiple ownership categories, or both. It takes the guesswork out of whether your money is fully covered.

Frequently Asked Questions

Does FDIC insurance cover money market accounts and CDs?

Yes. Money market accounts, certificates of deposit (CDs), and savings accounts are all covered by FDIC insurance up to $250,000 per depositor, per bank, per ownership category. A CD at one bank is insured separately from a CD at another bank, but two CDs at the same bank in your name alone are counted together toward the $250,000 limit.

If I have $250,000 in one bank and $250,000 in another, is all of it covered?

Yes. FDIC coverage is per bank, so $250,000 at Bank A and $250,000 at Bank B are both fully covered. The limit resets at each different bank. This is why people with large deposits often use multiple banks.

What if my spouse and I each have individual accounts plus a joint account at the same bank?

All three are covered separately. Your individual account is covered up to $250,000, your spouse's individual account is covered up to $250,000, and the joint account is covered up to $250,000 — all at the same bank. The total coverage could be $750,000 across these three accounts.

Does FDIC insurance cover investment accounts or stocks?

No. FDIC insurance covers deposits only — checking accounts, savings accounts, money market accounts, and CDs. Stocks, bonds, mutual funds, and other investments are not covered by FDIC insurance, even if held at an FDIC-member bank.

If a bank fails, how long does it take to get my insured deposits back?

The FDIC typically makes insured deposits available within one to two business days after a bank closes. In most cases, you do not have to do anything — the FDIC handles the process automatically. You will receive your insured funds either through a new bank account or a check.