Most savings accounts at banks are FDIC insured, but not all accounts or all banks

A savings account at a bank that holds FDIC insurance is covered up to $250,000 per depositor, per bank, per ownership category. That means if you have $50,000 in a savings account at Chase, that money is protected if Chase fails. If you have $300,000 in a savings account at the same bank, only $250,000 is covered — the extra $50,000 is not.

The catch: not every place that holds your money is a bank with FDIC insurance. Credit unions use a different system called NCUA insurance. Investment accounts, money market accounts at brokerages, and savings accounts at online-only companies that are not banks are not covered by FDIC insurance at all. Checking accounts at banks are also FDIC insured under the same $250,000 limit, but they are a separate ownership category from savings accounts.

Before you move money anywhere, you need to know whether the institution holding it is actually an FDIC-insured bank. The FDIC publishes a searchable list of every bank it insures. If a bank is not on that list, your deposits are not protected by FDIC insurance, no matter what the bank's website says.

Key Takeaways

  • FDIC insurance covers savings accounts at banks up to $250,000 per person per bank, but only if the bank is on the FDIC's official list of insured institutions.
  • Credit unions are insured by NCUA, not FDIC, and have the same $250,000 per-account limit but different rules about what counts as a separate account.
  • Online banks and fintech companies that are not chartered banks do not have FDIC insurance, even if they look like banks or call themselves banks.
  • You can check whether a specific bank is FDIC insured by searching the FDIC's BankFind tool with the bank's name and location.
  • If you have more than $250,000 at one bank, you can spread it across multiple banks or use different ownership categories (joint accounts, retirement accounts, trust accounts) to increase your coverage.

How to verify a bank has FDIC insurance

Go to the FDIC's BankFind tool at banks.data.fdic.gov. Type in the bank's name and the state where your branch is located. If the bank appears in the results, it is FDIC insured. If it does not appear, it is not.

You can also look for the FDIC logo on the bank's website or in the branch. Banks that hold FDIC insurance are required to display it, usually near the entrance or on deposit account disclosures. The logo says "FDIC" with the words "Insured by the FDIC" underneath. However, a logo alone is not proof — always check BankFind to be certain, because some non-insured institutions display fake logos.

If you call the bank directly, ask whether they are an FDIC-insured bank. Write down the answer and the date you called. If the bank says yes but does not appear in BankFind, that is a red flag. Do not deposit money there.

Savings accounts versus other account types at the same bank

FDIC insurance counts each ownership category separately. A savings account, a checking account, and a money market account at the same FDIC-insured bank are three separate $250,000 buckets. If you have $100,000 in savings, $100,000 in checking, and $100,000 in a money market account at the same bank, all $300,000 is covered.

But if you have $200,000 in one savings account and $100,000 in another savings account at the same bank, they are both counted as "savings accounts" under the same ownership, so only $250,000 total is covered. The extra $50,000 is not protected.

Joint accounts are a separate category. If you and your spouse each have $250,000 in individual savings accounts at the same bank, and you also have a joint savings account with $250,000, all three accounts are covered separately — that is $750,000 total. The FDIC counts the joint account as a different owner.

Online banks and whether they have FDIC insurance

Some online banks are FDIC insured and some are not. The name "bank" does not may provide FDIC coverage. An online bank is only FDIC insured if it is a chartered bank and appears in the FDIC's BankFind database.

Many online banks are chartered banks and do hold FDIC insurance — Ally Bank, Marcus by Goldman Sachs, and Discover Bank are examples. But some online financial companies call themselves banks and are not. Before you open an account, search BankFind for the exact legal name of the company. The company's website should show you its legal name somewhere in the fine print, usually under "About Us" or in the terms and conditions.

If an online bank is FDIC insured, your savings account is covered the same way as a savings account at a brick-and-mortar bank — up to $250,000 per person per bank. The fact that you cannot walk into a branch does not change the coverage.

Credit unions and NCUA insurance instead of FDIC

Credit unions are not banks and are not FDIC insured. Instead, they are insured by the National Credit Union Administration (NCUA). The coverage limit is the same — $250,000 per person per credit union — but the rules about what counts as a separate account are slightly different.

At a credit union, a savings account and a checking account are combined under one $250,000 limit, not separate. A joint account is a separate category. A retirement account (IRA) at the same credit union is also separate. If you have $150,000 in a credit union savings account and $150,000 in a credit union checking account at the same credit union, only $250,000 total is covered.

You can check whether a credit union is NCUA insured by searching the NCUA's Credit Union Locator at mapping.ncua.gov. All federally chartered credit unions are NCUA insured. Some state-chartered credit unions are also NCUA insured, and some are insured by their state instead. The locator will tell you which.

What happens to your money if the bank fails

If an FDIC-insured bank fails, the FDIC takes over and pays out deposits up to the $250,000 limit per account category. You do not have to do anything. The FDIC will contact you, usually within a few days, and tell you how to get your money back.

In most cases, you can access your money within a few days through a new bank account the FDIC opens for you, or through a transfer to another bank you choose. The FDIC has a track record of paying out deposits quickly — in recent bank failures, most depositors had access to their money within one business day.

Money above the $250,000 limit is not automatically returned. You become an unsecured creditor of the failed bank and may recover some of it later, but there is no may provide. This is why spreading money across multiple banks or using different account categories matters if you have more than $250,000.

How to protect more than $250,000 at one bank

If you have more than $250,000 and want it all insured at one bank, you can use different ownership categories. Open a joint savings account with your spouse — that is a separate $250,000 bucket. Open a retirement account (IRA) in your name — that is another $250,000 bucket. Open a trust account — that is yet another $250,000 bucket. Each one is covered separately.

The simplest approach for most people is to split money across multiple FDIC-insured banks. If you have $500,000, put $250,000 at Bank A and $250,000 at Bank B. Both are fully covered. This also protects you if one bank has a service outage or other problem.

Some banks offer "sweep" accounts that automatically move money to other FDIC-insured banks to increase coverage. Ask your bank whether it offers this service. If it does, make sure you understand how it works and that the other banks in the sweep network are actually FDIC insured.

Frequently Asked Questions

Is my money safe in a savings account if the bank is not FDIC insured?

No. If the bank fails and is not FDIC insured, you have no federal protection. You become an unsecured creditor and may recover some money later, but there is no may provide. Always verify FDIC insurance before depositing money.

Do I need to do anything to activate FDIC insurance on my savings account?

No. If your bank is FDIC insured, your savings account is automatically covered up to $250,000. You do not need to sign up, pay a fee, or take any action. The coverage is automatic.

If I have $300,000 in a savings account at an FDIC-insured bank, how much is covered?

Only $250,000 is covered by FDIC insurance. The remaining $50,000 is not protected. To cover all $300,000, you would need to move $50,000 to a different FDIC-insured bank, or open a joint account or retirement account at the same bank.

Are savings accounts at online banks FDIC insured?

Only if the online bank is a chartered bank and appears in the FDIC's BankFind database. Many online banks are FDIC insured, but not all. Always search BankFind for the bank's legal name before opening an account.

What is the difference between FDIC and NCUA insurance?

FDIC insures banks, NCUA insures credit unions. Both cover up to $250,000 per person per institution. The main difference is how they count separate accounts — NCUA combines savings and checking under one limit, while FDIC counts them separately.