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

The Federal Deposit Insurance Corporation (FDIC) protects checking accounts up to $250,000 per person at each bank where you have an account. That limit applies to the total of all your checking accounts at that one bank — if you have two checking accounts at the same bank, the $250,000 covers both combined, not each one separately.

The $250,000 limit has been in place since 2010. It covers the balance you have on the day the bank fails, not the highest balance you ever had. If your bank closes on a Tuesday and you have $180,000 in checking, you are covered for $180,000. The FDIC does not cover losses from fraud, theft, or poor investment choices — only the risk that the bank itself becomes insolvent.

Money in other account categories at the same bank — savings accounts, money market accounts, certificates of deposit — are insured separately. A $250,000 checking balance and a $250,000 savings account at the same bank are both fully covered because they are different account types. Joint accounts are also separate: if you and your spouse each own half of a joint checking account with $500,000, you are each covered for $250,000.

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank per account type, so multiple checking accounts at one bank share a single $250,000 limit.
  • Savings accounts, money market accounts, and CDs are insured separately from checking, so you can have $250,000 in each category at the same bank and be fully covered.
  • Joint accounts are insured separately from individual accounts, and each owner's share is covered up to $250,000.
  • If you have more than $250,000 to keep safe at a single bank, you can open accounts in different categories or use different banks to stay within the limit at each one.

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

If you have two checking accounts at the same bank — say one for personal use and one for a small business — the $250,000 FDIC limit covers both accounts combined. The FDIC does not count them separately just because they have different purposes. The same rule applies if you have a checking account and a money market account that functions like a checking account: they are both in the "transaction account" category and share the $250,000 limit.

The exception is when accounts are in different ownership categories. A checking account in your name alone and a joint checking account with your spouse are insured separately. Each of you is covered for up to $250,000 in the individual account and up to $250,000 in the joint account. A checking account in your name and a checking account in a revocable trust with you as the trustee are also separate — the trust account gets its own $250,000 limit.

If you have $300,000 and want to keep it all at one bank, you can put $250,000 in a checking account in your name and $50,000 in a joint checking account with your spouse. Both are fully covered. Alternatively, you could put $250,000 in checking and $50,000 in a savings account — different account types, so both are covered in full.

What happens if your bank fails and you exceed the limit

When a bank fails, the FDIC steps in and pays out deposits up to the insurance limit. If you have $300,000 in a single checking account at a bank that closes, the FDIC pays you $250,000. The remaining $100,000 becomes a claim against the bank's assets, and you may recover some or all of it later, but there is no may provide.

The FDIC typically processes payouts within a few business days of the bank's closure. You do not have to file a claim or contact the FDIC yourself — the agency identifies all insured deposits and sends payments automatically. If you had direct deposit set up, the FDIC can deposit your insured balance into another account. If not, you receive a check.

Bank failures are rare in the United States. The FDIC has insured deposits since 1933, and the vast majority of banks remain solvent. The insurance exists to protect you if the unlikely event occurs, not because it is likely to happen at your bank.

How to structure accounts if you have more than $250,000

If you have more than $250,000 to deposit, you have several options to keep all of it insured. The simplest is to split your money across multiple banks. $250,000 at Bank A and $250,000 at Bank B are both fully covered because the FDIC limit is per bank, not per person overall.

Within a single bank, you can use different account categories. Put $250,000 in a checking account, $250,000 in a savings account, and $250,000 in a certificate of deposit — all three are insured separately at the same bank. You can also use different ownership structures: an individual account, a joint account with your spouse, and an account in a revocable trust all have separate $250,000 limits at the same bank.

Some banks offer "sweep" programs that automatically move money above a certain threshold into accounts at partner banks to keep you within FDIC limits. Ask your bank whether this service is available. It is not automatic at all banks, and you need to set it up in advance.

Account types that share the $250,000 limit

The FDIC groups accounts into categories, and all accounts in the same category at the same bank share a single $250,000 limit. Transaction accounts — checking, NOW accounts, and money market accounts that allow unlimited withdrawals — are all in one category. A checking account and a money market account at the same bank both count toward the same $250,000 limit.

Savings accounts are a separate category with their own $250,000 limit. Certificates of deposit (CDs) are also separate. Individual retirement accounts (IRAs) have their own $250,000 limit per person per bank, regardless of whether the IRA is a traditional IRA, Roth IRA, or SEP IRA. Retirement accounts do not share a limit with checking or savings accounts.

The FDIC website has a full list of account categories and how they are insured. If you are unsure whether two accounts at your bank share a limit, contact the bank directly or use the FDIC's online tool to calculate your coverage.

Joint accounts and FDIC coverage

A joint checking account is insured separately from an individual checking account at the same bank. If you and your spouse each own half of a joint account, the FDIC covers the full balance up to $250,000 as a joint account. You also each have a separate $250,000 limit on individual accounts at that bank.

The FDIC insures joint accounts based on the number of owners, not the amount each owner contributed. If you and three other people own a joint account together, the account is still covered up to $250,000 total — the limit does not increase with more owners. Each owner has an equal claim to the insured amount if the bank fails.

If you are married and have a joint account with $300,000, the FDIC covers $250,000. The remaining $100,000 is not covered, even though you each own half. To protect the full $300,000, you could move $50,000 to a joint savings account at the same bank, keeping the checking account at $250,000 and the savings account at $50,000 — both fully covered.

Revocable trusts and FDIC coverage

A checking account in a revocable trust has its own $250,000 FDIC limit, separate from individual accounts at the same bank. If you set up a revocable trust and fund a checking account in the trust's name, that account is covered up to $250,000. You can also have an individual checking account at the same bank covered for another $250,000.

The FDIC covers revocable trusts based on the beneficiaries named in the trust. If your revocable trust names three beneficiaries, the trust account is covered up to $250,000 per beneficiary — meaning up to $750,000 total if each beneficiary's share is fully insured. This is more complex than individual or joint accounts, and the rules depend on the exact language of your trust.

If you use a revocable trust to hold large deposits, contact the FDIC or your bank to confirm your coverage. The agency has a calculator on its website that can help you determine whether your trust account is fully insured.

Frequently Asked Questions

Does the FDIC cover money in a savings account separately from checking?

Yes. Savings accounts are a separate category from checking accounts, so you can have $250,000 in checking and $250,000 in savings at the same bank, and both are fully covered. The $250,000 limit applies to each category independently.

If I have $250,000 in checking at one bank and $250,000 at another bank, am I fully covered?

Yes. The FDIC limit is per bank, not per person overall. You can have $250,000 at Bank A and $250,000 at Bank B, and both amounts are fully insured. The limit only applies to the total you have at each individual bank.

What if my spouse and I have a joint checking account with $300,000?

The FDIC covers $250,000 of the joint account. The remaining $100,000 is not covered. To protect the full amount, you could move $50,000 to a joint savings account at the same bank, or open a joint account at a different bank for the extra $50,000.

Does FDIC insurance cover money I lose to fraud or theft?

No. FDIC insurance only covers deposits if the bank itself fails. It does not cover fraud, theft, or unauthorized withdrawals. If someone steals from your account, contact your bank and law enforcement — your bank may have its own fraud protection, but that is separate from FDIC insurance.

Can I increase my FDIC coverage by opening multiple checking accounts at the same bank?

No. All checking accounts in your name at the same bank share a single $250,000 limit. Opening a second checking account does not increase your coverage. You can increase coverage by using different account types (savings, CDs) or different banks.