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

FDIC insurance covers most savings accounts held at banks that are members of the Federal Deposit Insurance Corporation. The standard coverage limit is $250,000 per depositor, per bank, per ownership category. If your bank fails, the FDIC pays you back up to that limit. But the word "most" matters — some savings accounts fall outside this protection, and some places that look like banks are not FDIC members at all.

The first thing to check is whether your bank is actually insured. You can search the FDIC's BankFind tool on fdic.gov by entering your bank's name and your state. If it appears in the results, it is a member. If it does not, your savings account has no FDIC protection, no matter how safe the bank claims to be.

The second thing to understand is what counts as a "savings account" for FDIC purposes. A regular savings account is covered. A money market deposit account (MMDA) is covered. A certificate of deposit (CD) is covered. But a safe deposit box is not — the contents of a box are not insured by the FDIC, even though the box sits inside an insured bank. And if you hold a savings account at a credit union instead of a bank, it is not FDIC insured; credit unions are covered by a different system called the National Credit Union Administration (NCUA), which works the same way but is a separate program.

Key Takeaways

  • FDIC insurance covers savings accounts, money market accounts, and CDs at member banks up to $250,000 per person per bank.
  • You can confirm your bank is FDIC insured by searching the BankFind tool on fdic.gov.
  • Credit unions are not FDIC insured; they are covered by the NCUA instead, which offers the same $250,000 protection.
  • Safe deposit boxes, brokerage accounts, and mutual funds held at a bank are not FDIC insured, even if the bank itself is a member.
  • If you have more than $250,000 at one bank, only the first $250,000 is protected; the rest is at risk if the bank fails.

How the $250,000 limit works when you have multiple accounts

The $250,000 limit is per depositor, per bank, per ownership category. That means if you have $100,000 in a savings account and $200,000 in a CD at the same bank, both under your name alone, the FDIC covers only $250,000 total — not $250,000 for each account. The extra $50,000 is uninsured.

But if you have $250,000 in a savings account under your name alone and another $250,000 in a joint account with your spouse at the same bank, both are fully covered. The joint account is a separate ownership category, so it gets its own $250,000 limit. Similarly, if you have $250,000 in an account in your name and $250,000 in a trust account at the same bank, each is covered separately because trusts are their own category.

The ownership categories that matter are: single name, joint, trust, retirement (IRA), and certain other categories like accounts for a business or for a minor in a guardianship. If you are unsure whether your account structure qualifies for separate coverage, the FDIC's Coverage Calculator on fdic.gov lets you enter your account details and see exactly how much is protected.

What happens to your money if the bank fails

When a bank fails, the FDIC steps in. In most cases, the FDIC arranges for another bank to take over the failed bank's deposits. You keep your account at the new bank, and nothing changes from your perspective — you can still access your money the same day or the next business day. Your debit card keeps working. Your online access transfers over. You do not have to do anything.

If no bank wants to take over the deposits, the FDIC pays you directly. This is slower — it can take a few weeks — but the FDIC has a track record of paying out within 10 business days in most cases. You receive a check or a wire transfer for up to $250,000. Any amount over $250,000 is lost unless the bank's other assets can cover it, which is rare.

Since 1934, when the FDIC was created, no depositor has lost a single dollar of FDIC-insured funds. The system has been tested many times — during the savings and loan crisis of the 1980s, during the 2008 financial crisis, and during regional bank failures in 2023. In every case, insured depositors were made whole.

Accounts and institutions that are not FDIC insured

Credit unions are not FDIC insured. They are insured by the NCUA, which offers the same $250,000 protection per account category. If your savings account is at a credit union, search the NCUA's Credit Union Locator on ncua.gov to confirm it is insured.

Online banks are FDIC insured if they are members — and most major ones are. But some online-only banks are not. Again, use BankFind to check. The fact that a bank has a website does not mean it is insured.

Brokerage accounts are not FDIC insured, even if held at a bank-owned brokerage. Stocks, bonds, and mutual funds fall under a different protection system called SIPC (Securities Investor Protection Corporation), which covers up to $500,000 per account but only protects against broker failure, not market losses. Money market funds held through a brokerage are also not FDIC insured.

Safe deposit boxes are not FDIC insured. The contents — jewelry, documents, cash — are your responsibility. Some homeowners or renters insurance policies cover the contents of a safe deposit box, but the bank does not. If the bank fails, your box is transferred to the acquiring bank, but if the contents are lost or damaged, the FDIC does not pay.

Savings accounts at foreign banks are not FDIC insured, even if the bank has a branch in the United States. Only deposits held at U.S. banks that are FDIC members are covered.

How to confirm your bank is FDIC insured and how much is protected

Go to fdic.gov and click on BankFind. Enter your bank's name and the state where you opened the account. If your bank appears in the results with a green checkmark, it is FDIC insured. The search result will also show you the bank's FDIC certificate number and the date it joined the system.

If your bank does not appear, it is not FDIC insured. Do not assume a bank is insured just because it looks legitimate or has been around for a long time. Some banks operate without FDIC membership, and some are not banks at all — they are finance companies or investment firms that use the word "bank" in their name but are not regulated the same way.

To see exactly how much of your money is protected, use the FDIC's Coverage Calculator, also on fdic.gov. You enter your account balances, the type of each account (single, joint, trust, retirement, etc.), and the bank name. The calculator shows you the coverage for each account and the total protected amount. This is especially useful if you have more than $250,000 at one bank or if you have accounts in different ownership categories.

What to do if you have more than $250,000 to keep safe

If you have more than $250,000 in savings, you can spread it across multiple FDIC-insured banks to keep all of it protected. For example, $250,000 at Bank A and $250,000 at Bank B means both amounts are fully insured. The banks do not have to be different brands — you could have accounts at two different branches of the same bank holding company, but they would still count as one bank for FDIC purposes. What matters is whether they have separate FDIC certificates.

You can also use different ownership categories at the same bank. A $250,000 account in your name alone, a $250,000 joint account with your spouse, and a $250,000 retirement account (IRA) at the same bank would all be separately insured, for a total of $750,000 protected. But this requires actually setting up separate accounts in each category — you cannot just label one account differently.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to spread deposits across multiple banks automatically. You deposit money into one account, and IntraFi divides it among partner banks, keeping each portion under $250,000 so all of it stays insured. This is useful if you want to keep your money in one place for convenience but need coverage for more than $250,000. Ask your bank whether it offers IntraFi or a similar service.

Frequently Asked Questions

Does FDIC insurance cover my savings account if the bank is hacked or my account is stolen?

No. FDIC insurance only covers bank failure, not fraud or theft. If someone steals your account information and drains your savings, that is a matter for your bank's fraud department and law enforcement, not the FDIC. Your bank may reimburse you under its fraud protection policy, but that is separate from FDIC insurance.

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

If the bank fails, the FDIC covers $250,000 and the extra $50,000 is lost. You would need to split the money across two banks or use different account categories to protect all of it. Use the FDIC's Coverage Calculator to plan how to structure your accounts before you deposit the money.

Are money market accounts at banks FDIC insured?

Yes, money market deposit accounts (MMDAs) at FDIC-insured banks are covered up to $250,000. But money market mutual funds sold through a brokerage are not FDIC insured — they are covered by SIPC instead. Make sure you know which type of account you have.

If I move my money from one FDIC-insured bank to another, do I lose coverage during the transfer?

No. Your money is covered at both banks during the transfer. Once it leaves the first bank, it is no longer their responsibility, and once it arrives at the second bank, it is covered there. There is no gap in protection.

Is my savings account still FDIC insured if the bank is bought by another bank?

Yes. When one bank buys another, the FDIC coverage continues. Your account transfers to the new owner, and your $250,000 limit stays in place. You may see your account information change in online banking, but your protection does not change.