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

The Federal Deposit Insurance Corporation (FDIC) covers checking accounts up to $250,000 at each bank where you hold an account. This is the standard limit for individual accounts — the money you deposit in your own name. If you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose the rest if the bank fails.

The $250,000 limit applies to each separate bank, not across all your banks combined. If you have $250,000 in checking at Bank A and $250,000 in checking at Bank B, both amounts are fully covered because they are at different institutions. The coverage resets at each new bank.

This limit has been in place since 2008. Before that, the standard was $100,000. Congress raised it to $250,000 during the financial crisis and made it permanent in 2010.

Key Takeaways

  • The FDIC covers $250,000 per person per bank in a standard individual checking account.
  • Money over $250,000 at the same bank is not covered, so splitting deposits across multiple banks protects larger balances.
  • Joint accounts, retirement accounts, and trust accounts have separate $250,000 limits, so a married couple can cover $500,000 in a joint checking account.
  • FDIC coverage applies only if the bank itself fails — it does not cover theft, fraud, or your own mistakes.
  • You do not need to do anything to activate FDIC coverage; it is automatic at any bank that displays the FDIC logo.

How the $250,000 limit breaks down by account type

The $250,000 limit is not one bucket. The FDIC divides your money into separate categories, and each category gets its own $250,000 protection. This means a married couple can actually cover $500,000 or more at a single bank by using different account types.

A joint account — one held in both spouses' names — is covered separately from individual accounts. If you and your spouse each have a $250,000 individual checking account and a $250,000 joint checking account at the same bank, all $750,000 is covered. The joint account is treated as one unit, not split 50-50 between you.

Retirement accounts like IRAs have their own $250,000 limit. A traditional IRA and a Roth IRA at the same bank are each covered up to $250,000. Trust accounts (money held for a beneficiary) also get separate coverage. The rules are complex if you have multiple beneficiaries named in a trust, so contact your bank if you hold more than $250,000 in a trust account.

Savings accounts, money market accounts, and checking accounts are all lumped together under one $250,000 limit at each bank. If you have $150,000 in checking and $150,000 in savings at the same bank, only $250,000 total is covered — not $250,000 each.

What happens if your bank fails

If a bank becomes insolvent and closes, the FDIC steps in as the insurer. You do not file a claim or wait for approval. The FDIC automatically transfers your covered deposits to another bank, usually within one to three business days. You keep your debit card, online access, and account number in most cases.

The FDIC maintains a list of failed banks on its website. Since 2008, fewer than 600 banks have failed in the United States, so the risk is low. But it has happened, and FDIC coverage is the reason depositors at those banks did not lose their money.

If you had $300,000 in a checking account at a failed bank, you would receive $250,000 from the FDIC and lose $50,000. The bank's other assets might eventually pay out part of that $50,000, but there is no may provide.

FDIC coverage does not protect against theft or fraud

FDIC insurance covers bank failure only. It does not cover money stolen from your account, fraudulent transfers, or your own mistakes — like sending money to the wrong person or falling for a scam.

If someone hacks your account and drains $50,000, the FDIC will not reimburse you. Your bank might, depending on its fraud policy and how quickly you report it, but that is a separate protection. If you wire money to a scammer thinking it is a legitimate business, the FDIC does not cover that loss either.

This is why monitoring your account regularly and using strong passwords matters. FDIC insurance is a safety net for the bank's collapse, not for every type of financial loss.

How to verify your bank has FDIC coverage

Look for the FDIC logo on your bank's website or in its lobby. Nearly all banks that take deposits are FDIC-insured, but not all. Some credit unions use a different insurer called the National Credit Union Administration (NCUA), which works the same way but covers credit union accounts instead.

You can search the FDIC's Bank Find tool on its website to confirm a specific bank is insured and to see its current status. Enter the bank name and state, and the tool will show you whether it is covered and by how much.

Online banks and branches of large national banks are covered the same way as brick-and-mortar locations. The coverage limit is per bank, not per branch, so having accounts at two branches of the same bank does not double your protection.

Splitting money across banks to protect more than $250,000

If you have more than $250,000 to deposit, open accounts at different banks. Each bank is a separate entity for FDIC purposes, even if they are owned by the same parent company. Bank of America and Merrill Bank are both owned by Bank of America Corporation, but they are separate FDIC-insured institutions, so deposits at each are covered separately.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to spread large deposits across multiple banks automatically. You deposit money into one account, and IntraFi splits it into $250,000 chunks at different banks, all under your name. Each chunk is fully covered. The service is free to you; the banks pay the fee.

If you are a business owner, sole proprietor, or have complex account structures, talk to your bank about how coverage works for your situation. The rules for business accounts, payroll accounts, and certain trust arrangements differ from personal checking accounts.

Frequently Asked Questions

Does FDIC coverage apply to money in my savings account too?

Savings and checking accounts are combined under one $250,000 limit at each bank. If you have $150,000 in checking and $150,000 in savings at the same bank, only $250,000 total is covered. To protect both, split them across different banks or use different account categories like a joint account or retirement account.

What if I have $500,000 and want to keep it all at one bank?

You can cover $500,000 at one bank by using a joint account ($250,000) and an individual account ($250,000), or by opening a retirement account. Each account type has its own $250,000 limit. Talk to your bank about which structure works for your situation.

If my bank gets bought by another bank, do I lose FDIC coverage?

No. FDIC coverage continues after a merger or acquisition. The new owner is still FDIC-insured, and your deposits remain protected up to $250,000. Your account details may change, but your coverage does not.

Does FDIC coverage protect money I wire to another account?

No. Once money leaves your account, FDIC coverage no longer applies. If you wire money to a scammer or the wrong person, the FDIC does not cover that loss. Your bank may be able to reverse the transaction if you report it quickly, but that is separate from FDIC insurance.

Are online banks covered by FDIC insurance?

Yes, as long as they display the FDIC logo or state they are FDIC-insured. Online banks are subject to the same $250,000 limit per depositor per bank as traditional banks. Check the bank's website or use the FDIC Bank Find tool to confirm coverage.