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

The Federal Deposit Insurance Corporation (FDIC) protects your money in a savings account if the bank fails. The standard coverage limit is $250,000 per person at each bank. That means if you have $250,000 or less in a savings 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 ownership category separately. A savings account in your name alone is one category. A joint savings account with your spouse is a different category, also covered up to $250,000. A savings account you hold in trust for someone else is yet another category. This means you can have more than $250,000 covered at the same bank if your money is split across different ownership types.

The coverage applies only to deposits at banks that display the FDIC logo or are members of the FDIC. Money market accounts, checking accounts, and certificates of deposit (CDs) are also covered under the same $250,000 limit per category. Brokerage accounts, stocks, bonds, and mutual funds held at a bank are not covered by FDIC insurance.

Key Takeaways

  • FDIC insurance covers up to $250,000 per person per bank per account ownership category, so a single savings account over that amount is only partially protected.
  • Joint accounts, trust accounts, and accounts in your name alone each count as separate categories, allowing you to have multiple $250,000 coverages at one bank.
  • The coverage applies to savings accounts, checking accounts, money market accounts, and CDs, but not to stocks, bonds, or brokerage investments.
  • If you have more than $250,000 to deposit, you can spread it across multiple banks or multiple account types at the same bank to keep all of it covered.

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

The FDIC treats different ways of holding an account as separate categories for insurance purposes. Understanding these categories matters if you have significant savings or multiple accounts at the same bank.

A single-name account — a savings account in only your name — is covered up to $250,000. A joint account with another person is covered up to $250,000 for the account as a whole, not per person. If you and your spouse have a joint savings account with $500,000, the FDIC covers only $250,000 of it. A revocable trust account (a savings account you set up to pass to someone after your death) is covered up to $250,000 per beneficiary named in the trust, up to a total of $250,000 for the account. An irrevocable trust account is covered up to $250,000 per beneficiary. Accounts held for a minor child, retirement accounts (IRAs), and accounts held in a business name are also separate categories, each with their own $250,000 limit.

The key point: if your money is in different categories at the same bank, each category gets its own $250,000 coverage. If it is all in one category, you share the $250,000 limit with any other accounts in that same category at that same bank.

What happens if you have more than $250,000 at one bank

If your savings account exceeds $250,000 at a single bank, only $250,000 is protected by FDIC insurance. The amount over $250,000 is at risk if the bank fails. This does not mean the bank will fail — most banks are stable — but the insurance protection ends at $250,000.

The most straightforward way to protect money over $250,000 is to split it across multiple banks. If you have $500,000 in savings, you could deposit $250,000 at Bank A and $250,000 at Bank B. Both amounts would be fully covered. You can also use different account ownership categories at the same bank: a single-name account and a joint account at the same bank each get $250,000 coverage, so you could have $500,000 covered at one bank if it is split between those two categories.

Some people use a service called a sweep account or deposit placement service, offered by some banks and brokerages. These services automatically move your money across multiple FDIC-insured banks to keep all of it covered. You maintain one account number and one login, but your money is actually held at multiple banks behind the scenes. Ask your bank whether they offer this service if you regularly hold more than $250,000.

How to check if your bank is FDIC-insured

Not all banks are FDIC members. Credit unions, for example, are insured by the National Credit Union Administration (NCUA), not the FDIC, and have different coverage rules. Before depositing money, confirm that your bank is FDIC-insured.

The easiest way to check is to look for the FDIC logo on the bank's website or in the branch. You can also search the FDIC's BankFind tool on their website (fdic.gov) by entering the bank's name and state. The tool shows whether the bank is insured, which FDIC region it belongs to, and the date it joined the FDIC. If a bank does not appear in BankFind, it is not FDIC-insured, and your deposits there are not protected by FDIC insurance.

Large national banks like Bank of America, Wells Fargo, and Chase are FDIC-insured. Most regional and community banks are as well. Online banks like Ally, Marcus, and Discover are also FDIC-insured, even though they do not have physical branches. Always verify before opening an account with a bank you are unfamiliar with.

FDIC coverage does not apply to these accounts and products

FDIC insurance covers deposits — money you place in the bank. It does not cover investments or products the bank sells on behalf of other companies. If your bank holds stocks, bonds, mutual funds, or brokerage accounts in your name, those are not covered by FDIC insurance, even if the bank fails.

Safe deposit boxes are also not covered by FDIC insurance. If you store jewelry, documents, or other valuables in a safe deposit box at an FDIC-insured bank and the bank fails, the FDIC does not protect the contents. You would need a separate homeowners or renters insurance policy to cover those items. Similarly, if you have a safe deposit box and the bank loses or damages the contents through negligence, FDIC insurance does not apply — you would need to pursue a claim against the bank directly.

Cashier's checks, money orders, and traveler's checks issued by the bank are not covered. Wire transfers sent from your account are not covered. If you wire money to another account and that money is lost or stolen, FDIC insurance does not protect it. Only money sitting in a deposit account at an FDIC-insured bank is covered.

What to do if your bank fails

If an FDIC-insured bank fails, the FDIC steps in to protect your deposits. The FDIC does not require you to file a claim or take any action. The agency automatically covers your deposits up to the $250,000 limit per category and arranges for your money to be transferred to another bank or paid to you directly.

In most cases, the FDIC transfers your account to another bank within a few business days. You keep your account number, your debit card continues to work, and you can access your money as usual. The FDIC handles all the paperwork behind the scenes. If your account cannot be transferred to another bank, the FDIC mails you a check for the covered amount within a few weeks.

Bank failures are rare in the United States. The FDIC has been in operation since 1933, and the vast majority of banks remain stable. The insurance exists as a safety net, but most people never need to use it. If you are concerned about a specific bank's stability, you can check its financial ratings through the FDIC or through independent rating agencies like Moody's or Standard & Poor's.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is covered?

The FDIC covers $250,000. The remaining $50,000 is not protected. If you want to protect all $300,000, move $50,000 to a different bank or open a different account category (like a joint account) at the same bank, as long as that category is not already in use.

Does FDIC insurance cover money I wire to another account?

No. FDIC insurance covers money sitting in a deposit account at an FDIC-insured bank. Once you wire money out, it is no longer a deposit at that bank, and the insurance does not apply. If the money is lost or stolen during the transfer, you would need to pursue a claim with the bank or the receiving bank, not the FDIC.

Are online banks covered by FDIC insurance?

Yes, if they are FDIC-insured. Most online banks like Ally, Marcus, and Discover are FDIC members and offer the same $250,000 coverage as brick-and-mortar banks. Check the bank's website or the FDIC BankFind tool to confirm membership before opening an account.

If I have a joint account with my spouse, is each of us covered for $250,000?

No. A joint account is covered for $250,000 total, not per person. If you and your spouse each want $250,000 covered, you would need separate single-name accounts at the same bank, or one joint account and one or more single-name accounts.

What happens to my FDIC coverage if I move money between banks?

Your coverage resets at each bank. If you move $250,000 from Bank A to Bank B, you lose coverage at Bank A (because you no longer have money there) and gain coverage at Bank B (up to $250,000). The coverage is tied to the money's location, not to you personally.