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

The Federal Deposit Insurance Corporation protects $250,000 of your money in each savings account at each bank where you hold it. That limit applies to the total across all savings accounts you own at that same institution — if you have three savings accounts at Bank A, the $250,000 covers all three combined, not each one separately.

The $250,000 figure has been in place since 2008. It covers the account balance as it stands on the day the bank fails, including any interest that has accrued. If your account holds $275,000, the FDIC pays you $250,000 and you lose the remaining $25,000.

Money in a savings account is treated the same way as money in a checking account for FDIC purposes — both fall under the same $250,000 limit per depositor per bank. The distinction between account types does not change the coverage amount.

Key Takeaways

  • The FDIC protects $250,000 per person per bank, and that limit covers all your savings accounts at that bank combined.
  • If you have $250,000 or less in savings accounts at one bank, your entire balance is protected if the bank fails.
  • Money held in different ownership categories — such as a joint account or a retirement account — may have separate $250,000 limits at the same bank.
  • Spreading money across multiple banks is the most straightforward way to protect balances larger than $250,000.

How the $250,000 limit works across multiple banks

If you keep $250,000 at Bank A and $250,000 at Bank B, both amounts are fully protected. The FDIC limit is per bank, not per person overall. You can open accounts at as many banks as you need to protect larger sums.

The coverage applies only to the bank where you hold the account. If Bank A fails, the FDIC pays you up to $250,000 from your accounts there. If Bank B fails separately, the FDIC pays you up to $250,000 from your accounts there. The two banks are treated independently.

This means a person with $500,000 in savings can protect the entire amount by keeping $250,000 at one bank and $250,000 at another. Many people with substantial savings use this strategy deliberately.

Joint accounts and separate ownership categories

A joint savings account has its own $250,000 limit separate from any individual account you hold at the same bank. If you and your spouse each have a $250,000 individual savings account at Bank A, and you also have a joint savings account with $250,000 at Bank A, the FDIC covers all three — $750,000 total — because they fall under different ownership categories.

The FDIC recognizes several ownership categories: single ownership, joint ownership, retirement accounts (IRAs), trust accounts, and accounts held for a minor. Each category gets its own $250,000 limit at the same bank. A person can hold accounts in multiple categories and receive separate coverage for each.

A retirement account (IRA) at a bank receives $250,000 of coverage separate from a regular savings account at that same bank. This applies to traditional IRAs, Roth IRAs, and other retirement account types held at banks. The retirement account limit is still $250,000, not higher.

What happens to money above the $250,000 limit

Any balance above $250,000 in a single account at a single bank is not protected by the FDIC. If your savings account holds $300,000 and the bank fails, you receive $250,000 from the FDIC and lose $50,000. The FDIC does not reimburse the uninsured portion.

The uninsured portion may be recovered through the bank's liquidation process, but recovery is uncertain and often takes years. Creditors are paid in a specific order, and depositors with uninsured balances stand behind secured creditors. In many bank failures, uninsured depositors recover some money but not all.

This is why the standard advice for large savings is to spread money across multiple banks rather than concentrate it in one place. The $250,000 limit per bank is a hard ceiling, and the FDIC will not make exceptions for any reason.

How to track your coverage across accounts

If you hold multiple accounts at the same bank, add up all the balances in the same ownership category. For example, if you have a savings account with $150,000 and a money market account with $120,000 at the same bank, both in your name alone, the FDIC counts them as $270,000 total — $20,000 over the limit. Only $250,000 is protected.

The FDIC provides a tool called the Electronic Deposit Insurance Estimator (EDIE) on its website. You enter your account balances and ownership types, and EDIE calculates how much coverage you have at each bank. The tool is free and does not require you to log in or provide personal information beyond what you enter.

You can also call your bank and ask directly how much of your balance is FDIC-insured. Banks are required to disclose this information. Some banks print the coverage amount on statements or in online banking portals, though not all do.

Savings accounts at credit unions and online banks

Credit unions are covered by the National Credit Union Administration (NCUA), not the FDIC, but the protection works the same way: $250,000 per member per credit union. If you have accounts at multiple credit unions, each one provides separate $250,000 coverage.

Online banks are FDIC-insured just like brick-and-mortar banks. The coverage limit is still $250,000 per depositor per bank, regardless of whether the bank operates physical branches. An online bank and a traditional bank are two separate institutions for FDIC purposes, so money at each one is covered separately.

Some online banks are subsidiaries of larger banking companies. For FDIC purposes, each subsidiary is treated as a separate bank. If Bank A owns an online subsidiary called Bank A Direct, they have separate FDIC coverage. Confirm the charter of any online bank before assuming it is independent.

Frequently Asked Questions

Is money in a savings account covered differently than money in a checking account?

No. Both savings and checking accounts are covered by the same $250,000 FDIC limit per depositor per bank. The account type does not change the coverage amount. If you have $150,000 in checking and $150,000 in savings at the same bank, the FDIC counts them as $300,000 total — $50,000 over the limit.

If I have $250,000 in a savings account and the bank fails, do I get all of it back?

Yes. If your balance is exactly $250,000 or less, the FDIC covers the entire amount. You will receive your money, though the process typically takes a few days to a week after the bank closes. The FDIC transfers your account to another bank or sends you a check.

Can I protect more than $250,000 at one bank by opening multiple accounts?

Only if you use different ownership categories. A second savings account in your name alone does not create a second $250,000 limit — both accounts count toward the same limit. But a joint account with your spouse at the same bank has its own $250,000 limit separate from your individual account.

What if I have a savings account and a CD at the same bank?

Both count toward the same $250,000 limit per depositor per bank. CDs are FDIC-insured the same way savings accounts are. If you have $150,000 in a savings account and $120,000 in a CD at the same bank, the FDIC covers $250,000 total, leaving $20,000 uninsured.

Do I need to do anything to make sure my savings account is FDIC-insured?

No. FDIC coverage is automatic at any bank that displays the FDIC logo or states it is FDIC-insured. You do not need to sign up, pay a fee, or take any action. Coverage applies the moment you deposit money. You only need to track your balances to stay within the $250,000 limit per bank.