Yes, money market savings accounts held at FDIC-insured banks are covered up to $250,000 per depositor per bank

A money market savings account at a bank with FDIC insurance gets the same $250,000 coverage as a regular savings account. The FDIC does not treat money market accounts differently — if the bank fails, your money up to that limit is protected. The coverage applies to the account holder's name at that specific bank, so if you have $150,000 in a money market account and $100,000 in a regular savings account at the same bank, only $250,000 total is covered (the first $250,000 across both accounts).

Money market accounts sold by investment firms or brokerage houses are not FDIC-insured, even if they carry the name "money market." Those are securities, and they fall under different insurance rules through the Securities Investor Protection Corporation (SIPC). The difference matters: if you open a money market account at your bank's branch, you have FDIC coverage. If you open one through an investment platform, you do not, unless that platform is also an FDIC-insured bank.

Key Takeaways

  • Money market savings accounts at FDIC-insured banks receive the standard $250,000 per depositor per bank coverage, the same as any other deposit account.
  • The $250,000 limit covers all your deposit accounts combined at one bank, not per account, so multiple accounts do not multiply your protection.
  • Money market accounts offered by investment brokers or non-bank financial companies are not FDIC-insured and carry different protections or none at all.
  • You can verify whether a bank is FDIC-insured by searching the FDIC's BankFind tool using the bank's name and location.

How the $250,000 limit works across multiple accounts

The FDIC's $250,000 coverage is per depositor per bank, not per account. This means if you have a money market account, a savings account, and a checking account all at the same bank, the FDIC adds them together and insures up to $250,000 total across all three. If your combined balance exceeds $250,000, the amount over that threshold is not covered.

The exception is if you hold accounts in different ownership categories at the same bank. For example, an account in your name alone, a joint account with your spouse, and an account you hold as a trustee for someone else each get their own $250,000 limit. But a money market account in your individual name and a savings account in your individual name at the same bank share one $250,000 limit between them.

Money market accounts at investment firms versus banks

The name "money market account" appears in two very different places, and the insurance coverage is completely different. A money market savings account at a traditional bank (Chase, Bank of America, your local credit union) is a deposit product and is FDIC-insured. A money market mutual fund or money market account at a brokerage (Fidelity, Charles Schwab, Vanguard) is an investment product and is not FDIC-insured.

Brokerage money market accounts may be covered by SIPC insurance up to $500,000 per customer per firm, but SIPC protects you if the brokerage fails, not if the money market fund itself loses value. If the underlying investments in a brokerage money market fund decline, SIPC does not cover that loss. FDIC coverage, by contrast, protects your deposit balance regardless of what happens to the bank.

To know which type you have, look at where you opened the account. If you walked into a bank branch or opened it on a bank's website, it is a deposit account with FDIC coverage. If you opened it through an investment platform or brokerage, it is likely not FDIC-insured.

Checking FDIC coverage status for your bank

Not every bank is FDIC-insured. Most traditional banks and credit unions are, but some online banks, foreign banks, and investment-only institutions are not. You can verify your bank's status using the FDIC's BankFind tool at ifdic.gov. Search by the bank's name and the state where you opened your account. The tool will show you whether the bank is insured and the exact coverage limits that apply.

If your bank is not FDIC-insured, your money market account has no federal deposit insurance. Some non-FDIC banks carry private insurance, but that coverage is typically lower and less reliable than FDIC protection. Before opening a money market account at an unfamiliar institution, use BankFind to confirm it is FDIC-insured.

What happens to your money if the bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors up to $250,000 per account category per bank. You do not have to do anything to receive your money — the FDIC handles the payout automatically. In most cases, you regain access to your funds within a few business days, either through a transfer to another bank or through a check mailed to your address on file.

The FDIC has never failed to pay out covered deposits in full. Since the FDIC was created in 1933, no depositor has lost a single dollar of FDIC-covered funds due to a bank failure. This protection applies to money market savings accounts the same way it applies to checking and savings accounts.

Strategies for protecting balances over $250,000

If you have more than $250,000 to deposit, you can spread it across multiple FDIC-insured banks to keep all of it covered. For example, $250,000 at Bank A and $250,000 at Bank B means both amounts are fully insured. You can also use different ownership categories at the same bank: an account in your name, a joint account with your spouse, and an account held in trust for a child each receive their own $250,000 limit at the same institution.

Money market accounts at different banks are separate for FDIC purposes, so you could hold a money market account at one bank and a money market account at another bank and have $250,000 coverage at each. This approach works well if you want the higher yields that money market accounts sometimes offer while keeping all your deposits insured.

Frequently Asked Questions

Is a money market account safer than a regular savings account?

Both have the same FDIC insurance protection, so neither is safer from a bank failure standpoint. The difference is in how the money is invested and what interest rate you earn. Money market accounts typically require a higher minimum balance and may offer higher interest rates, but they are not safer — just different products with the same insurance coverage.

What if I have a money market account at two different banks?

Each bank's FDIC coverage is separate. If you have $200,000 in a money market account at Bank A and $200,000 at Bank B, both amounts are fully covered because they are at different banks. The $250,000 limit applies per bank, not across all your banks combined.

Do money market mutual funds have FDIC insurance?

No. Money market mutual funds sold through investment firms are not FDIC-insured. They may be covered by SIPC if the brokerage fails, but SIPC does not protect you if the fund's value declines. Only money market savings accounts at FDIC-insured banks carry FDIC deposit insurance.

Can I lose money in a money market savings account?

At an FDIC-insured bank, no — your principal is protected up to $250,000 regardless of what happens to the bank. The interest rate may be low or even zero, but your deposit itself cannot decline. This is different from money market mutual funds, where the share price can fall.

How do I know if my bank is FDIC-insured?

Search the FDIC's BankFind tool at ifdic.gov using your bank's name and state. You can also look for the FDIC logo on your bank's website or ask a teller directly. Most traditional banks and credit unions are insured, but it is worth confirming before you deposit large amounts.