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

The Federal Deposit Insurance Corporation (FDIC) protects your money if a bank fails. The standard coverage limit is $250,000 per person, per bank, per account type. If you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose $50,000. If you have $250,000 in a checking account and $250,000 in a savings account at the same bank, both are fully covered because they are different account types.

The $250,000 limit has been in place since 2010. It applies to all FDIC-insured banks, which includes most banks you can walk into or open an account with online. Credit unions use a different system called the National Credit Union Administration (NCUA), which also covers up to $250,000 per person per institution.

Key Takeaways

  • The FDIC covers $250,000 per depositor per bank per account type, so splitting money across account types at the same bank can increase your coverage.
  • Joint accounts, retirement accounts, and trust accounts each have their own $250,000 limit separate from your individual account limit at the same bank.
  • Money in a checking account and money in a savings account at the same bank are covered separately, so you can have $500,000 fully protected if you split it evenly.
  • If you have more than $250,000 at one bank, opening accounts at different FDIC-insured banks is the only way to protect the excess.
  • The FDIC website has a tool called the Electronic Deposit Insurance Estimator (EDIE) that calculates your exact coverage at any bank.

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

The FDIC does not just count all your money at one bank and stop at $250,000. Instead, it separates your accounts into categories, and each category gets its own $250,000 limit. This means you can have more than $250,000 at a single bank and still be fully covered if you use different account types.

The main categories are: individual accounts (in your name alone), joint accounts (shared with another person), retirement accounts (IRAs and similar), and trust accounts (money held for someone else). A checking account in your name and a savings account in your name both count as individual accounts, so they share one $250,000 limit. But a checking account in your name and a joint checking account with your spouse each have their own $250,000 limit.

If you are married and have a joint savings account with $250,000 and an individual savings account with $250,000, both are fully covered. The joint account is one category and your individual account is another. The same applies if you have a retirement account at the same bank—it has its own $250,000 limit separate from your individual and joint accounts.

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

If your total in one account category at one bank exceeds $250,000, the FDIC covers only $250,000 and you absorb the loss if the bank fails. For example, if you have $350,000 in a savings account in your name at Bank A, only $250,000 is protected. The other $100,000 is not covered by the FDIC.

The standard solution is to move the excess to a different FDIC-insured bank. If you move $100,000 to Bank B, you now have $250,000 at Bank A (fully covered) and $100,000 at Bank B (fully covered). Each bank's coverage is separate, so your total protection is $350,000.

This works for any account type. If you have $500,000 in individual retirement accounts, you could put $250,000 at Bank A and $250,000 at Bank B, and both would be fully protected. The same applies to joint accounts, trust accounts, and any other category.

Coverage for joint accounts and accounts held in trust

A joint account is covered separately from an individual account, even at the same bank. If you and your spouse each have $250,000 in individual savings accounts and also have a joint savings account with $250,000, all three are fully covered. The joint account is insured up to $250,000, and each person's individual account is insured up to $250,000.

Trust accounts and accounts held for a minor also have their own $250,000 limit. If you set up a trust account at a bank and fund it with $250,000, that $250,000 is covered separately from any individual or joint account you have at the same bank. The same applies to an account you hold in trust for a child or grandchild.

The rules become more complex if a trust names multiple beneficiaries or if you are a trustee for multiple trusts. The FDIC website and the EDIE tool can help you calculate coverage in these situations, but the basic principle remains: each account category has its own $250,000 limit.

How to check your coverage with the EDIE tool

The FDIC provides a free tool called the Electronic Deposit Insurance Estimator (EDIE) at fdic.gov. You enter your bank name, the account types you have, the balances in each, and whether any accounts are joint or held in trust. EDIE then calculates exactly how much is covered and how much is not.

To use EDIE, go to fdic.gov, find the EDIE link in the deposit insurance section, and select your bank from the list. If your bank is not listed, it may not be FDIC-insured—you can search the FDIC's bank database to confirm. Enter your account details and EDIE will show you the coverage amount for each account and your total coverage at that bank.

EDIE is useful if you have complex account structures—for example, if you have individual accounts, joint accounts, and retirement accounts at the same bank, or if you are a trustee for multiple trusts. For a simple situation (one checking account and one savings account in your name), you can calculate coverage yourself: add the balances and cap the total at $250,000.

What is not covered by FDIC insurance

FDIC insurance covers money deposited in a bank account. It does not cover stocks, bonds, mutual funds, or other investments, even if you buy them through your bank. If your bank has a brokerage arm and you buy 100 shares of a stock, that is not FDIC-insured. If you buy a bond through your bank, that is not FDIC-insured.

Safe deposit boxes are also not covered. If you store jewelry, documents, or cash in a safe deposit box at a bank, the FDIC does not protect it if the bank fails. Some banks offer insurance on safe deposit box contents, but you have to purchase it separately.

Money market accounts are covered by FDIC insurance if they are held at an FDIC-insured bank, but they count toward your $250,000 limit in the individual account category (if the account is in your name alone). Certificates of deposit (CDs) are also covered and count toward the limit.

FDIC coverage at online banks and credit unions

Online banks are FDIC-insured if they are chartered as banks and members of the FDIC system. Most major online banks (Ally, Marcus, Discover, etc.) are FDIC-insured. The $250,000 limit applies the same way as at a brick-and-mortar bank. If you have $250,000 at an online bank and $250,000 at a traditional bank, both are fully covered because they are different institutions.

Credit unions are not covered by the FDIC. Instead, they are covered by the National Credit Union Administration (NCUA), which provides the same $250,000 per member per institution limit. If you have money at a credit union, check whether it is NCUA-insured by searching the NCUA's credit union database.

If you use both banks and credit unions, your coverage at each is separate. You could have $250,000 at a bank and $250,000 at a credit union, and both would be fully protected.

Frequently Asked Questions

If my bank fails, how long does it take to get my money back?

The FDIC typically returns insured deposits within one to three business days of a bank closure. In most cases, your money is available in a new account at another bank or through a check within this timeframe. The FDIC has a track record of paying out quickly, but the exact timing depends on the size and complexity of the bank failure.

Does FDIC insurance cover money I owe the bank, like overdraft fees?

No. FDIC insurance protects your deposits, not debts. If you have an overdraft or owe the bank money, the bank can offset your insured deposits to cover what you owe before the FDIC pays out. This is called "setoff," and it reduces the amount you receive.

If I have $250,000 in a checking account and $250,000 in a savings account at the same bank, are both covered?

Yes. Both accounts are in the individual account category, so they share one $250,000 limit. Only $250,000 of the combined $500,000 is covered. To protect both amounts, move one account to a different FDIC-insured bank.

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

All three accounts 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. Your total coverage at that bank is $750,000.

Are savings bonds or Treasury bills covered by FDIC insurance?

No. FDIC insurance covers only money deposited in bank accounts. Bonds, Treasury bills, stocks, and other securities are not covered, even if you purchase them through a bank. Some of these investments have their own government backing (like Treasury bills), but that is separate from FDIC insurance.