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

If your bank displays the FDIC logo or you can confirm it on the FDIC's Bank Find tool at fdic.gov, your savings account balance is protected. The coverage applies to the money itself—principal and interest combined—not to investment returns or market performance. The $250,000 limit is per person, per bank, so if you have $300,000 in savings at one FDIC-insured bank, only $250,000 is covered.

This protection is automatic. You do not need to register, pay a fee, or take any action. It exists because the bank is a member of the FDIC system, which is funded by member banks, not by taxpayers.

Key Takeaways

  • Traditional savings accounts at FDIC-insured banks are covered up to $250,000 per depositor per bank, with no action required on your part.
  • The $250,000 limit covers your total balance at that one bank—if you have $300,000 in savings there, the extra $50,000 is not covered.
  • You can hold more than $250,000 safely by spreading deposits across multiple FDIC-insured banks, since the limit resets at each bank.
  • Online banks and credit unions may have different insurance structures, so you should verify coverage before moving money.
  • Interest earned on your savings counts toward the $250,000 limit, not separately from it.

How the $250,000 limit works across multiple accounts

The FDIC counts all your savings accounts at the same bank as one total. If you have a regular savings account with $150,000 and a money market savings account with $120,000 at the same FDIC-insured bank, you have $270,000 total—only $250,000 is covered, leaving $20,000 unprotected.

However, if you split that $270,000 across two different FDIC-insured banks—$135,000 at Bank A and $135,000 at Bank B—both amounts are fully covered because the limit applies separately at each bank. This strategy works as long as each bank is independently FDIC-insured. Branches of the same bank do not create separate coverage; they all count as one institution.

Joint accounts have their own coverage limit. If you and another person hold a joint savings account with $300,000 at an FDIC-insured bank, you each have $250,000 of coverage—$500,000 total—because the FDIC insures each owner's share separately.

What is not covered by FDIC insurance

FDIC insurance protects the money in the account, but not losses from fraud, theft, or your own mistakes. If someone steals your login credentials and empties your account, the FDIC does not cover that loss—your bank's fraud protection and your own security practices do. If you accidentally transfer money to the wrong person, that is also not covered.

Investment products held at a bank—stocks, bonds, mutual funds, brokerage accounts—are not FDIC-insured, even if the bank itself is. These fall under SIPC insurance (Securities Investor Protection Corporation) instead, which has different rules and limits. Certificates of Deposit (CDs) are covered by FDIC insurance up to $250,000, but only if held at an FDIC-insured bank.

Foreign currency deposits, cryptocurrency, and precious metals stored at a bank are also not covered. If your bank holds gold or silver for you, that is a custodial service outside FDIC protection.

How to verify your bank is FDIC-insured

The fastest way is to visit fdic.gov/BankFind and search by bank name or location. The tool shows whether the bank is insured, what type of institution it is, and when it joined the FDIC system. If your bank appears in the results with an active status, your savings account is covered.

You can also call the FDIC directly at 1-877-ASK-FDIC (1-877-275-3342) and provide your bank's name. They will confirm coverage in minutes. Most large national banks and regional banks are FDIC-insured, but some online banks, credit unions, and smaller institutions are not, so it is worth checking if you are unsure.

Your bank statement or online banking portal may display the FDIC logo, but this is not a may provide—always verify through the Bank Find tool or by calling the FDIC to be certain.

What happens if your bank fails

If an FDIC-insured bank closes or fails, the FDIC steps in to protect your covered deposits. In most cases, your money is transferred to another FDIC-insured bank within a few business days, and you regain access to your account. You do not lose the covered portion of your balance.

The FDIC has a process for this: they identify another bank willing to take over the failed bank's deposits, or they pay out the covered amount directly to you. The entire process is designed to happen quickly so you are not left without access to your money. Since 1933, when FDIC insurance began, no depositor has lost a single penny of covered funds.

If your balance exceeds $250,000 at a failed bank, you will receive the covered $250,000 first, and the uncovered portion may be recovered later through the bank's liquidation process—but there is no may provide you will recover it in full.

Online banks and FDIC coverage

Online banks can be FDIC-insured just like brick-and-mortar banks. The lack of a physical branch does not affect coverage. You should still verify the online bank through the FDIC Bank Find tool before opening an account. Many online banks are FDIC-insured and offer competitive interest rates on savings accounts precisely because they have lower overhead costs.

Some online banks are owned by larger FDIC-insured institutions, which means your deposits are covered under that parent bank's FDIC membership. Others are independent FDIC members. Either way, the coverage is the same: up to $250,000 per depositor per bank.

Credit unions and alternative insurance

Credit unions are not FDIC-insured. Instead, they are typically insured by the National Credit Union Administration (NCUA), which provides the same $250,000 per depositor coverage. The mechanics are identical—your savings account at an NCUA-insured credit union is protected up to $250,000, and the limit resets if you have accounts at multiple credit unions.

You can verify NCUA coverage at ncua.gov using their credit union locator tool. Like the FDIC, NCUA insurance is automatic and requires no action from you. If you move money between a bank and a credit union, make sure you understand which insurance system covers each account.

Frequently Asked Questions

If I have $300,000 in a savings account at one FDIC-insured bank, what happens to the extra $50,000?

Only $250,000 is covered by FDIC insurance. The remaining $50,000 is unprotected. If the bank fails, you will receive $250,000 and may recover the $50,000 through the bank's liquidation process, but there is no may provide. To protect the full $300,000, split it across two FDIC-insured banks.

Does FDIC insurance cover money I lose to fraud or a scam?

No. FDIC insurance protects your balance if the bank fails, not if someone steals your money or you send it to a scammer. Your bank's fraud protection and your own security practices are your defense. Report unauthorized transactions to your bank immediately—they may reverse them under their fraud policy, but the FDIC will not.

Are savings accounts at online banks covered by FDIC insurance?

Yes, if the online bank is FDIC-insured. Check the bank's website for the FDIC logo or search fdic.gov/BankFind to confirm. Many online banks are FDIC members and offer the same $250,000 coverage as traditional banks.

If I have accounts at two different branches of the same bank, does each branch have its own $250,000 limit?

No. All branches of the same bank count as one institution for FDIC purposes. Your total balance across all branches at that bank is covered up to $250,000 combined. To get separate $250,000 coverage, you need accounts at two different banks.

What is the difference between FDIC insurance and NCUA insurance?

FDIC insures banks; NCUA insures credit unions. Both provide $250,000 per depositor coverage with the same rules. The main difference is which institution you are banking with. Verify which system covers your account by checking the bank or credit union's website or calling the FDIC or NCUA directly.