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

The Federal Deposit Insurance Corporation insures $250,000 per person at each bank. That limit applies to your savings account, checking account, money market account, and certificate of deposit separately — meaning you can have $250,000 covered in savings and another $250,000 covered in checking at the same bank. The coverage is per depositor, per institution, so if you have accounts at two different banks, each bank covers you up to $250,000.

The $250,000 limit has been in place since 2010. Before that, the standard was $100,000, but Congress raised it during the financial crisis and made it permanent. If your account balance exceeds $250,000 at a single bank, the amount over that threshold is not insured — you would lose it if the bank failed.

Coverage applies automatically. You do not need to register, apply, or do anything to activate it. If your bank is FDIC-insured (nearly all banks are), your deposits are protected the moment the money lands in your account.

Key Takeaways

  • The FDIC covers $250,000 per person per bank, and that limit resets for each account type you hold at the same bank.
  • Money in a savings account and money in a checking account at the same bank are counted separately, so you can have $500,000 total covered.
  • If you have more than $250,000 at one bank, the excess is not insured and you lose it if the bank fails.
  • Joint accounts are covered separately from individual accounts, so a joint savings account gives you and your spouse each $250,000 of protection.
  • Coverage is automatic — you do not need to do anything to activate it.

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

The FDIC divides coverage into categories, and each category has its own $250,000 limit at each bank. Your individual savings account is one category. Your individual checking account is a separate category. A joint account you share with a spouse is a third category. A retirement account (IRA, SEP-IRA, or similar) is a fourth category. A trust account is a fifth.

This means you can have $250,000 in your individual savings account, $250,000 in your individual checking account, $250,000 in a joint savings account with your spouse, and $250,000 in your IRA — all at the same bank, and all fully covered. The total is $1 million, but it is split across four separate coverage buckets.

If you have two savings accounts at the same bank under your own name, they are treated as one account for insurance purposes. The FDIC adds the balances together and covers only up to $250,000 total. You cannot split one account into two to double your coverage.

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

If your balance exceeds $250,000 in a single account category at one bank, only $250,000 is insured. The rest is uninsured. If the bank fails, you recover the insured portion and lose the uninsured portion.

Bank failures are rare in the modern era — the FDIC has closed fewer than 600 banks since it was created in 1933, and none since 2023. But the risk is real, and it is the reason the $250,000 limit exists. If you have more than $250,000 to keep safe, the standard approach is to split it across multiple banks, each holding up to $250,000.

Some people use a strategy called laddering: opening accounts at different banks and keeping each one just under $250,000. Others use sweep accounts, which automatically move money between banks to keep balances under the limit. Ask your bank whether they offer sweep services.

Coverage for joint accounts and retirement accounts

A joint account is insured separately from an individual account. If you and your spouse have a joint savings account with $250,000 and you each also have individual savings accounts with $250,000 at the same bank, all three accounts are fully covered — $750,000 total. The FDIC insures each person's share of the joint account up to $250,000, so a joint account with $500,000 in it would be split: $250,000 covered for you, $250,000 covered for your spouse, and $0 covered for the excess $0 (there is no excess in this example, but if the account held $600,000, the extra $100,000 would be uninsured).

Retirement accounts — IRAs, SEP-IRAs, SIMPLE IRAs, and Keogh plans — are insured in their own category. You can have $250,000 in an IRA and $250,000 in a SEP-IRA at the same bank, and both are fully covered. This is separate from any individual or joint account coverage you have.

Trust accounts are also a separate category. If you have set up a revocable living trust and the bank account is titled in the trust's name, that account is insured separately from your personal accounts.

Accounts that are not FDIC-insured

Most deposit accounts at banks are FDIC-insured, but some are not. Investment products — stocks, bonds, mutual funds, and brokerage accounts — are not covered by the FDIC. They are covered by the Securities Investor Protection Corporation (SIPC) if your brokerage fails, but that is a different insurance system with different limits.

Money market funds held at a bank are sometimes insured and sometimes not, depending on whether they are held as deposits or as investments. Ask your bank directly if you are unsure.

Safe deposit boxes are not insured. The contents of a safe deposit box — jewelry, documents, cash — are not protected by the FDIC if the bank fails. Some people buy separate insurance for the contents of a safe deposit box through a homeowner's or renter's insurance policy.

How to check whether your bank is FDIC-insured

The FDIC maintains a public database called the FDIC Bank Find tool on its website. You can search by bank name or location to confirm that your bank is insured. Nearly all banks in the United States are FDIC members, but a small number of banks — usually very new ones or very specialized ones — are not.

Your bank statements and account agreements should also state whether your accounts are FDIC-insured. Look for language like "This account is insured by the FDIC" or "Member FDIC" on your statements or the bank's website.

If your bank is not FDIC-insured, your deposits are not protected by federal insurance. Some state-chartered banks have state deposit insurance instead, but the coverage is usually lower than the FDIC limit. If you bank at a non-FDIC institution, move your money to an FDIC-insured bank.

Frequently Asked Questions

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

$250,000 is covered. The remaining $50,000 is uninsured. If the bank fails, you recover $250,000 and lose $50,000. To protect the full $300,000, move $50,000 to a different FDIC-insured bank.

Does the FDIC cover money in a money market account?

Yes, if the money market account is held as a deposit at a bank. Money market accounts at banks are FDIC-insured up to $250,000 per depositor per bank. Money market funds sold through a brokerage are not FDIC-insured — they are covered by SIPC instead.

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

Yes. The FDIC covers each account owner's share separately. A joint account with $500,000 is fully covered: $250,000 for you and $250,000 for your spouse. If the account holds $600,000, the extra $100,000 is uninsured.

Does FDIC coverage apply if the bank is hacked and my money is stolen?

No. FDIC insurance covers bank failure only — when the bank itself runs out of money and closes. If a hacker steals your money, that is a crime, not a bank failure. Report it to your bank and the FBI, but the FDIC will not reimburse you.

If I move my money to a different bank, do I lose coverage?

No. Coverage applies at each bank separately. You can have $250,000 at Bank A and $250,000 at Bank B, and both amounts are fully insured. Moving money between banks does not affect your coverage.