The FDIC covers up to $250,000 per depositor, per bank, per account 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 insured 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 the same account at the same bank, 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 $150,000 and a savings account with $120,000 at the same bank, both under your name alone, they count together as $270,000 — so $20,000 is uninsured. The ownership category matters: a joint account with your spouse is a separate $250,000 category from an account in your name alone at the same bank.

FDIC coverage does not apply to investments like stocks, bonds, mutual funds, or brokerage accounts, even if held at a bank. It also does not cover safe deposit boxes, their contents, or money market mutual funds. Coverage applies only to deposit products: checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs).

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account ownership type — so $250,000 in your name alone and another $250,000 in a joint account with your spouse at the same bank are both fully covered.
  • Multiple accounts at the same bank in the same ownership category (for example, two savings accounts both in your name) combine toward the $250,000 limit, not add to it.
  • Stocks, bonds, mutual funds, and brokerage accounts are not covered by FDIC insurance, even if you hold them through a bank.
  • If you have more than $250,000 to protect at one bank, you can open accounts in different ownership categories or spread deposits across multiple FDIC-member banks.

How different account ownership categories each get $250,000 coverage

The FDIC recognizes several ownership categories, and each one has its own $250,000 limit at the same bank. This is how you can have more than $250,000 insured at one institution.

An account in your name alone is one category. A joint account with another person is a separate category — the $250,000 limit applies to the joint account as a whole, not per person. If you and your spouse have a joint account with $250,000, it is fully covered. If you each also have individual accounts at the same bank, those are separate categories, each with its own $250,000 limit.

Retirement accounts (IRAs, SEP-IRAs, and similar) are a separate category with their own $250,000 limit. A payable-on-death (POD) account — where you name a beneficiary to receive the balance if you die — is also separate. Trust accounts are separate, though the coverage rules for trusts are more complex and depend on how the trust is structured and how many beneficiaries it names.

Example: You have $250,000 in a checking account in your name alone, $250,000 in a joint savings account with your spouse, and $250,000 in an IRA at the same bank. All three are fully insured because they are in different ownership categories. If you added a fourth account — a second checking account in your name alone — that fourth account would combine with the first one, and only $250,000 of the combined total would be covered.

What happens if you exceed $250,000 at one bank

If your total deposits in one ownership category at one bank exceed $250,000, the amount over $250,000 is uninsured. If that bank fails, you lose the uninsured portion. The FDIC does not automatically move money or warn you; the burden is on you to track your balances and stay within the limit.

The most straightforward way to protect deposits over $250,000 is to split them across multiple FDIC-member banks. If you have $400,000 in savings, you could put $250,000 at Bank A and $150,000 at Bank B. Both amounts are now fully insured. You can open accounts at as many banks as you need; there is no limit to how much total FDIC coverage you can have across different institutions.

Some people use a service called CDARS (Certificate of Deposit Account Registry Service) or similar sweep services to automatically split large CD deposits across multiple banks and keep each portion under $250,000. These services are offered through some banks and brokers and handle the logistics for you, though they typically charge a fee.

Coverage for joint accounts and accounts with multiple owners

A joint account is insured as a single unit up to $250,000, regardless of how many owners it has or how the money is divided between them. If you and your spouse have a joint account with $250,000, the entire amount is covered — not $250,000 per person. If the account holds $300,000, only $250,000 is insured.

Each joint owner is may have access to to the full $250,000 coverage if the bank fails, but the total coverage for that account does not exceed $250,000. This matters if the account is in dispute: if you and your spouse disagree about who owns what portion of the money, the FDIC will still only insure up to $250,000 total for that account.

If you want to protect more than $250,000 in joint deposits, you can open multiple joint accounts at different banks. A joint account with your spouse at Bank A and a joint account with your spouse at Bank B are separate and each gets $250,000 coverage. You can also have a joint account with your spouse and a separate joint account with a different person (such as a business partner) at the same bank; these are treated as separate accounts for coverage purposes.

Coverage for retirement accounts and trust accounts

IRAs, SEP-IRAs, SIMPLE IRAs, and Keogh plans each have their own $250,000 FDIC coverage limit, separate from your other accounts at the same bank. If you have a traditional IRA with $250,000 and a Roth IRA with $250,000 at the same bank, both are fully covered because they are different account types.

Trust accounts are more complex. A revocable living trust account is generally insured up to $250,000 per beneficiary named in the trust, up to a maximum of $250,000 total for the account. An irrevocable trust is insured differently and may have lower coverage. The exact rules depend on the trust structure, so if you hold a large amount in a trust account, contact the FDIC or your bank to confirm your coverage.

Payable-on-death (POD) accounts are insured up to $250,000 per beneficiary you name. If you name two beneficiaries on a POD account with $400,000, the account is insured up to $250,000 per beneficiary ($500,000 total), so the full amount is covered. If you name one beneficiary, only $250,000 is covered.

How to check your coverage and confirm your bank is FDIC-insured

The FDIC provides a tool called the FDIC's Electronic Deposit Insurance Estimator (EDIE) on its website. You enter information about your accounts — the bank name, account type, balance, and ownership category — and EDIE calculates how much is covered. This tool is free and does not require you to create an account.

You can also contact your bank directly and ask how much of your deposits are insured. Banks are required to disclose FDIC coverage limits, and most provide this information in account disclosures or on their website. If your bank cannot clearly explain your coverage, that is a sign to ask more questions or move your money.

To confirm your bank is FDIC-insured, search the FDIC's Bank Find tool on its website. Enter the bank name and state, and the tool will show whether it is a member and what its insurance coverage includes. If a bank does not appear in the search, it is not FDIC-insured, and your deposits there have no federal protection if the bank fails.

What FDIC insurance does not cover

FDIC insurance covers deposit accounts but not investment products. Stocks, bonds, mutual funds, exchange-traded funds (ETFs), and brokerage accounts are not covered, even if you buy them through a bank or a bank-affiliated brokerage. If the bank fails, you lose these investments.

Safe deposit boxes and their contents are not covered. If you store valuables, documents, or cash in a safe deposit box and the bank fails, the FDIC does not reimburse you for the contents. The box itself is the bank's property, and the contents are yours; the bank is not responsible for loss.

Money market mutual funds are not covered. Money market deposit accounts (a type of savings account) are covered, but money market mutual funds (an investment product) are not. The names are similar, so confirm with your bank which type you hold.

Cashier's checks, traveler's checks, and wire transfers are not covered. Foreign currency deposits are not covered. Deposits at banks outside the United States are not covered, even if the foreign bank has a relationship with a U.S. FDIC-member bank.

What happens when a bank fails and FDIC coverage kicks in

When an FDIC-member bank fails, the FDIC steps in as the receiver. The agency works to find another bank to assume the deposits, or it pays out insured deposits directly to depositors. The goal is to return your money as quickly as possible, usually within a few business days.

In most cases, the FDIC arranges for another bank to take over the failed bank's deposits. You keep your account at the new bank, and your insured balance is protected. You may receive a new debit card and online banking access, but your money remains accessible.

If no bank takes over the deposits, the FDIC pays you directly for the insured portion of your account. Uninsured deposits (amounts over $250,000 in your ownership category) go into the failed bank's receivership process, and you may recover some or all of it, but there is no may provide. This process can take months or longer.

Frequently Asked Questions

If I have $300,000 at one bank, how much is insured?

If all $300,000 is in the same ownership category (for example, a checking account in your name alone), $250,000 is insured and $50,000 is not. If you split the money into different ownership categories — such as $250,000 in an account in your name and $50,000 in a joint account with your spouse — both amounts are fully insured.

Are savings accounts and checking accounts insured separately?

No. Multiple accounts in the same ownership category at the same bank combine toward the $250,000 limit. If you have a checking account with $150,000 and a savings account with $120,000, both in your name at the same bank, they total $270,000, and only $250,000 is covered.

Is my IRA insured separately from my regular savings account?

Yes. IRAs are a separate ownership category with their own $250,000 limit. You can have $250,000 in an IRA and $250,000 in a savings account in your name at the same bank, and both are fully insured.

What if I have money in a joint account with my spouse and also a separate account in my name?

They are separate ownership categories. The joint account gets $250,000 coverage, and your individual account gets another $250,000 coverage at the same bank. You can have up to $500,000 insured across these two categories at one institution.

Do I need to do anything to activate FDIC insurance?

No. FDIC insurance is automatic at all member banks. You do not need to pay for it or sign up. Your deposits are covered from the moment you open the account, up to the limits described here.