Online savings accounts are FDIC insured if the bank holding your money is FDIC insured

Whether your online savings account is FDIC insured depends entirely on whether the bank or credit union holding it is insured by the FDIC. The FDIC does not insure based on where you open the account — online, in person, or by mail — only on who holds the money. Most major online banks are FDIC insured. Some are not. You have to check the specific bank.

The FDIC covers up to $250,000 per depositor, per bank, per account category. A savings account at one FDIC-insured bank is separate from a savings account at another FDIC-insured bank. Money market accounts, checking accounts, and savings accounts are also separate categories, so you could have $250,000 in each at the same bank and be fully covered.

Credit unions use a different insurer called the NCUA (National Credit Union Administration), which works the same way: up to $250,000 per member, per credit union, per account type. Online credit unions are NCUA insured if they are federally chartered or state-chartered members of the NCUA system.

Key Takeaways

  • FDIC insurance follows the bank, not the account type or how you opened it, so an online savings account is insured only if the bank itself is FDIC insured.
  • You can confirm FDIC insurance by searching the bank's name on the FDIC's official bank search tool at fdic.gov, which shows exactly what accounts are covered.
  • The $250,000 limit applies per depositor per bank per account category, meaning you can have $250,000 in a savings account and $250,000 in a money market account at the same FDIC-insured bank.
  • Credit unions use NCUA insurance instead of FDIC, but the coverage limit and rules are identical.
  • Neobanks and fintech apps that do not hold deposits themselves are not insured; your money is insured only if it sits at an FDIC-insured partner bank.

How to verify FDIC insurance for a specific online bank

Go to fdic.gov/BankFind and search for the bank by name. The FDIC's official search tool shows whether the bank is insured, which accounts are covered, and the insurance limit for each type. This is the only source you need — if the bank does not appear in this search, it is not FDIC insured.

When you search, look for the bank's legal name, not its brand name. For example, Marcus is a brand owned by Goldman Sachs Bank USA. If you search "Marcus," nothing appears. If you search "Goldman Sachs Bank USA," you see that it is FDIC insured. The search result also shows the bank's FDIC certificate number and the date it was insured.

Some online banks are owned by larger banks and operate under their FDIC insurance. Others are independent FDIC-insured banks. Either way, the BankFind tool shows the actual insured entity — the legal name of the bank that holds your money. That is what matters.

What FDIC insurance covers and does not cover in a savings account

FDIC insurance covers the balance in your savings account up to $250,000 if the bank fails and cannot return your money. It covers the principal and accrued interest. It does not cover investment losses, fees, or penalties. If you have $250,000 in a savings account earning interest and the bank fails, you get back the $250,000 plus the interest earned up to the moment of failure.

FDIC insurance does not cover money in investment products, even if they are held at an FDIC-insured bank. Stocks, bonds, mutual funds, and brokerage accounts are not FDIC insured. If an FDIC-insured bank also offers a brokerage service, your brokerage account is protected by SIPC (Securities Investor Protection Corporation), not the FDIC. These are separate protections with different limits.

The insurance also does not cover money held in a safe deposit box, even if the box is at an FDIC-insured bank. Safe deposit boxes are your responsibility. If someone breaks in or the bank loses the contents, FDIC insurance does not pay.

FDIC coverage limits when you have multiple accounts at one bank

The $250,000 limit is per depositor, per bank, per account category. If you have two savings accounts at the same FDIC-insured bank in your own name, they are added together and covered as one account up to $250,000 total. If you have $150,000 in one savings account and $150,000 in another at the same bank, only $250,000 is insured; the extra $50,000 is not.

Different account categories are insured separately. At the same bank, you can have $250,000 in a savings account, $250,000 in a money market account, and $250,000 in a checking account, and all three are fully covered. Joint accounts are a separate category too. If you have a savings account in your name alone and a joint savings account with your spouse at the same bank, each is covered up to $250,000.

Retirement accounts (IRAs, SEP-IRAs, and similar) are also a separate category with their own $250,000 limit. If you have a regular savings account and an IRA at the same FDIC-insured bank, each is covered separately.

Online banks that are not FDIC insured

Most well-known online banks are FDIC insured, but some are not. Neobanks and fintech apps often do not hold deposits themselves. Instead, they partner with one or more FDIC-insured banks and move your money there. In that case, your money is insured by the FDIC through the partner bank, not by the neobank.

Some neobanks and payment apps are not banks at all — they are money transmitters or payment processors. If you hold money with them, it may not be insured by the FDIC. Check the app's terms or website to see which bank holds the deposits. If no FDIC-insured bank is named, the money is not FDIC insured.

Cryptocurrency exchanges, peer-to-peer lending platforms, and investment apps are not FDIC insured. If you deposit money into these services, it is not protected by FDIC insurance, even if the company is well-known or well-funded.

What happens to your money if an FDIC-insured bank fails

If an FDIC-insured bank fails, the FDIC steps in as the insurer of last resort. The FDIC does not run the bank or take over operations. Instead, it either arranges for another bank to buy the failed bank's deposits and accounts, or it pays depositors directly up to the $250,000 limit per account category.

In most cases, the FDIC arranges a sale to another bank within one to three business days. Your account moves to the new bank with the same balance and access. You may get a new debit card and online login, but your money is there. The FDIC handles all of this; you do not have to do anything.

If no bank buys the failed bank's deposits, the FDIC pays you directly. This takes longer — usually a few weeks — but you still get your money up to $250,000 per account category. The FDIC has a track record of paying all insured deposits in full and on time since 1933.

NCUA insurance for online credit unions

Online credit unions are insured by the NCUA, not the FDIC. The coverage is identical: $250,000 per member, per credit union, per account category. The same rules apply — savings accounts, checking accounts, money market accounts, and retirement accounts are separate categories.

To check if an online credit union is NCUA insured, search the NCUA's credit union search tool at ncua.gov. Look for the credit union's legal name. If it appears in the search, it is NCUA insured. If it does not, it is not.

Some online credit unions are state-chartered and insured by state regulators instead of the NCUA. These are less common. If you are unsure, ask the credit union directly which regulator insures it, or search both the NCUA database and your state's banking regulator website.

Frequently Asked Questions

Can I have more than $250,000 insured at one online bank?

Yes, if you use different account categories. A savings account, money market account, checking account, and IRA at the same FDIC-insured bank are each insured up to $250,000 separately. You can also open a joint account, which is a separate category with its own $250,000 limit. If you need to insure more than $250,000 in one category, you must use a different FDIC-insured bank.

Is my money insured if I open an online savings account through a neobank app?

Only if the neobank partners with an FDIC-insured bank. Check the app's terms or website to see which bank holds your deposits. Search that bank's name on fdic.gov/BankFind to confirm it is FDIC insured. If the app does not name a bank partner or the partner is not FDIC insured, your money is not FDIC insured.

What if I have the same amount in savings accounts at two different online banks?

Each bank's account is insured separately. If you have $250,000 at Bank A and $250,000 at Bank B, both are fully FDIC insured because they are at different banks. The $250,000 limit applies per bank, not across all your accounts.

Does FDIC insurance cover interest earned on my savings account?

Yes. FDIC insurance covers the principal and all accrued interest up to $250,000 total. If you have $240,000 in a savings account and earn $15,000 in interest before the bank fails, you are covered for the full $255,000 because the total is still under $250,000 at the moment of failure. Interest accrued after the bank fails is not covered.

Do I need to do anything to keep my FDIC insurance active?

No. FDIC insurance is automatic for all deposits at FDIC-insured banks. You do not need to register, pay a fee, or take any action. As long as your money is at an FDIC-insured bank and within the coverage limits, you are insured.