Yes, Bank of America checking accounts are FDIC insured up to $250,000 per depositor, per account ownership category, per bank

Bank of America is an FDIC-insured bank, which means the Federal Deposit Insurance Corporation backs your deposits if the bank fails. Your checking account balance is covered up to $250,000. If you have multiple accounts at Bank of America in different ownership categories — for example, one in your name alone and another as a joint account with your spouse — each category gets its own $250,000 protection.

The $250,000 limit applies to the total of all your deposits in the same ownership category at the same bank. If you have $150,000 in a checking account and $120,000 in a savings account, both in your name alone at Bank of America, only $250,000 of that $270,000 is insured. The extra $20,000 is not covered.

FDIC insurance is automatic. You do not need to sign up, pay a fee, or do anything to activate it. The moment you deposit money into a Bank of America checking account, that money is insured up to the limit.

Key Takeaways

  • Bank of America checking accounts are covered by FDIC insurance up to $250,000 per depositor per account ownership category.
  • If you have multiple accounts in different ownership categories at Bank of America, each category is insured separately up to $250,000.
  • Joint accounts, accounts held in trust, and accounts in your name alone are treated as separate ownership categories and each receives its own $250,000 protection.
  • FDIC insurance is automatic and costs nothing; you do not need to take any action to be covered.
  • Money market accounts and savings accounts at Bank of America are also FDIC insured under the same $250,000 limit as checking accounts.

How FDIC insurance works at Bank of America

The FDIC is a federal agency that insures deposits at participating banks. Bank of America participates in this program. If Bank of America were to fail and close, the FDIC would pay depositors their insured balances directly, up to $250,000 per account ownership category.

The insurance covers the balance in your account on the day the bank closes. It does not cover losses from fraud, theft, or poor investment choices. If someone steals money from your account through unauthorized transfers, that is a separate issue handled by Bank of America's fraud department and your rights under the Electronic Funds Transfer Act, not by FDIC insurance.

FDIC insurance applies to checking, savings, and money market accounts. It does not cover investment products like stocks, bonds, mutual funds, or brokerage accounts, even if those accounts are held at Bank of America.

Account ownership categories and separate coverage

The FDIC recognizes several ownership categories, and each one is insured separately. This means you can have more than $250,000 in total deposits at Bank of America and still be fully insured if those deposits are in different ownership categories.

An account in your name alone is one category. A joint account with your spouse is a different category. An account you hold in trust for someone else is a third category. A payable-on-death account (where you name a beneficiary) is a fourth category. If you have $250,000 in a checking account in your name alone, $250,000 in a joint checking account with your spouse, and $250,000 in a payable-on-death account, all $750,000 is insured.

For joint accounts, the $250,000 limit covers the total of all joint accounts you hold together at Bank of America. If you and your spouse have a joint checking account with $150,000 and a joint savings account with $120,000, only $250,000 of that $270,000 is insured. The ownership category is "joint account with this specific person," not "joint account in general."

What happens if Bank of America fails

Bank failures are rare. The last major bank failure in the United States was Washington Mutual in 2008. If Bank of America were to fail, the FDIC would step in and either arrange for another bank to take over Bank of America's deposits or pay depositors directly.

If the FDIC pays you directly, you would receive a check or electronic transfer for your insured balance within a few business days. The FDIC maintains a database of all insured deposits and knows exactly how much each depositor is owed. You would not have to file a claim or provide proof of your balance; the FDIC has that information from Bank of America's records.

If another bank takes over Bank of America's deposits, your account would transfer to that bank automatically, and your money would remain accessible. You would not lose access to your funds during the transition.

Deposits not covered by FDIC insurance

FDIC insurance does not cover brokerage accounts, stocks, bonds, mutual funds, or other investment products. If you have a Bank of America investment account or a Bank of America brokerage account, those holdings are not FDIC insured. They may be covered by SIPC (Securities Investor Protection Corporation) insurance instead, which is a different program with different limits.

Safe deposit boxes are not covered by FDIC insurance. The contents of a safe deposit box — jewelry, documents, cash — are not insured if Bank of America fails. You would need separate insurance for those items, typically through a homeowners or renters policy.

Cashier's checks, money orders, and traveler's checks issued by Bank of America are not FDIC insured. Wire transfers sent from your account are not insured once they leave the bank. Funds held in a Bank of America account that is frozen due to a legal judgment or tax levy are still insured, but the FDIC would pay the insured amount to the entity that placed the freeze, not to you.

How to verify FDIC coverage for your specific situation

The FDIC provides a tool called the FDIC Electronic Deposit Insurance Estimator (EDIE) on its website. You can enter information about your Bank of America accounts — how much you have in each, who owns each account, and the ownership category — and EDIE will calculate exactly how much is insured. This tool is useful if you have complex account structures or multiple accounts and want to confirm your coverage before depositing large sums.

You can also contact Bank of America directly and ask them to confirm your FDIC coverage. Bank of America customer service can tell you whether a specific account is FDIC insured and up to what amount. They cannot change your coverage or increase it; FDIC limits are set by federal law. But they can confirm what you have.

If you are considering depositing more than $250,000 at Bank of America, you have options. You can open accounts in different ownership categories to spread your coverage. You can also open accounts at other FDIC-insured banks; each bank's deposits are insured separately. A $250,000 deposit at Bank of America and a $250,000 deposit at Wells Fargo are both fully insured.

Frequently Asked Questions

Does FDIC insurance cover money I lose to fraud or theft?

No. FDIC insurance only covers losses if the bank itself fails. If someone steals money from your account through unauthorized transfers or fraud, that is handled by Bank of America's fraud department and your rights under the Electronic Funds Transfer Act. Bank of America is required to investigate unauthorized transactions and typically refunds them within 10 business days if you report them promptly.

If I have $300,000 in a Bank of America checking account, how much is insured?

$250,000 is insured. The remaining $50,000 is not covered by FDIC insurance. If you want to insure the full $300,000, you could move $50,000 to an account in a different ownership category at Bank of America, or move it to another FDIC-insured bank.

Are Bank of America savings accounts and money market accounts also FDIC insured?

Yes. Savings accounts, money market accounts, and checking accounts at Bank of America are all FDIC insured up to $250,000 per depositor per ownership category. The $250,000 limit applies to the total of all your deposits in the same ownership category across all account types at Bank of America.

What if I have a payable-on-death account at Bank of America?

Payable-on-death accounts are a separate ownership category for FDIC purposes. Each beneficiary you name is insured separately up to $250,000. If you name your two children as beneficiaries on a payable-on-death account with $400,000, each child's share is insured up to $250,000, so the full $400,000 is covered.

Does FDIC insurance cover my Bank of America investment account?

No. Brokerage accounts, stocks, bonds, and mutual funds are not FDIC insured. They may be covered by SIPC insurance instead, which protects against broker failure but has different limits and rules. Ask Bank of America which protection applies to your specific investment account.