Bank of America deposits are FDIC insured up to $250,000 per depositor, per account category, at each FDIC-member bank
Yes. Bank of America is an FDIC-member bank, which means the Federal Deposit Insurance Corporation protects your money if the bank fails. The standard coverage limit is $250,000 per depositor per account category. If you have $300,000 in a Bank of America checking account and the bank becomes insolvent, the FDIC pays you $250,000. The remaining $100,000 is not covered under standard rules.
FDIC insurance is automatic — you do not need to sign up, pay a fee, or do anything to activate it. It covers deposits held in your name at the time the bank fails. It does not cover investment products like stocks, bonds, mutual funds, or brokerage accounts, even if you buy them through Bank of America.
The $250,000 limit applies per account category, not per account. This means you can have multiple accounts at the same bank and receive separate coverage for each category: one limit for checking, one for savings, one for money market accounts, and one for certificates of deposit (CDs). A joint account where you and another person are both owners gets its own $250,000 limit, separate from your individual accounts.
Key Takeaways
- Bank of America is FDIC insured, and the standard coverage is $250,000 per depositor per account category.
- FDIC insurance is automatic and costs nothing; you do not need to register or take any action.
- Coverage does not apply to investment products like stocks, mutual funds, or brokerage accounts held at Bank of America Investments.
- Joint accounts, retirement accounts (IRAs), and trust accounts each receive their own separate $250,000 limit.
- If your balance exceeds $250,000 in one account category, only the amount up to $250,000 is protected if the bank fails.
How FDIC coverage works when a bank fails
When an FDIC-member bank becomes insolvent and closes, the FDIC steps in as the insurer of last resort. The agency does not take over the bank's operations; instead, it either arranges for another bank to assume the deposits or pays depositors directly from the insurance fund.
In most cases, the FDIC arranges a merger with another bank. Your deposits transfer to the new bank automatically, and you keep access to your money. You may receive new debit cards and online banking credentials, but your account number and balance remain the same. The FDIC covers the cost of this transition.
If no bank agrees to take over the deposits, the FDIC pays you directly. Historically, this process has taken days to weeks. The FDIC maintains a reserve fund from premiums paid by member banks, so the insurance does not come from taxpayer money.
What FDIC insurance does not cover
FDIC insurance protects deposit accounts only. It does not cover stocks, bonds, mutual funds, exchange-traded funds (ETFs), or any securities you own through Bank of America Investments or any brokerage arm. If you buy a mutual fund through Bank of America and the bank fails, your mutual fund is not protected by FDIC insurance — it is protected by the Securities Investor Protection Corporation (SIPC) if the brokerage fails, but that is a separate system.
Safe deposit boxes are also not covered. If you store jewelry, documents, or other valuables in a Bank of America safe deposit box and the bank fails, the FDIC does not insure the contents. You would need to file a claim against the bank's estate, which often recovers little or nothing.
Cashier's checks, money orders, and traveler's checks issued by Bank of America are not FDIC insured as deposits. They are obligations of the bank itself, and if the bank fails, you would need to file a claim as a creditor.
Account categories and separate coverage limits
The FDIC divides accounts into categories, and each category receives its own $250,000 limit at the same bank. Understanding these categories matters if you have more than $250,000 to deposit.
| Account Category | Coverage Limit | Example |
|---|---|---|
| Single account (in your name only) | $250,000 | Your checking account at Bank of America |
| Joint account | $250,000 per co-owner | You and your spouse own a joint savings account; each of you is covered up to $250,000 |
| Retirement account (IRA, Roth IRA, SEP-IRA) | $250,000 | Your Bank of America IRA |
| Trust account | $250,000 per beneficiary | A revocable trust naming three beneficiaries gets $250,000 × 3 |
| Payable-on-death (POD) account | $250,000 per beneficiary | A savings account with a named POD beneficiary |
| Brokerage or investment account | Not FDIC insured | Stocks, mutual funds, or bonds held at Bank of America Investments |
A joint account is covered differently than two separate individual accounts. If you and your spouse each have $200,000 in separate checking accounts at Bank of America, you are both fully covered ($200,000 each). If you combine that money into one joint account with $400,000, only $250,000 is covered — the remaining $150,000 is not protected. The FDIC counts each co-owner's share separately, so if the account is truly joint and you each own half, the FDIC covers up to $250,000 for you and $250,000 for your spouse, for a total of $500,000.
How to check your coverage and stay within limits
The FDIC provides a tool called the FDIC Coverage Calculator on its website (fdic.gov). You enter your Bank of America account details — account type, balance, and whether it is joint or in your name only — and the calculator tells you how much is covered. This is useful if you have multiple accounts or unusual account structures.
If you have more than $250,000 in a single account category at Bank of America, you have three options: open accounts at other FDIC-member banks (each bank has its own $250,000 limit per category), use a sweep account that moves excess funds to other banks automatically, or invest the excess in products not covered by FDIC insurance (like money market funds or CDs at other institutions).
Bank of America does not warn you if your balance exceeds the FDIC limit. It is your responsibility to monitor your coverage. If you receive an inheritance, bonus, or large deposit that pushes you over $250,000, contact Bank of America to discuss options before the money sits unprotected.
FDIC insurance at Bank of America branches and online
FDIC coverage applies to all Bank of America deposit accounts, whether you opened them at a physical branch, online, or through the mobile app. The coverage limit and rules are the same. Online banks owned by Bank of America (such as Merrill Edge for banking products) are also FDIC insured if they are part of Bank of America, N.A., the FDIC-member entity.
If you use a Bank of America affiliate that is not an FDIC-member bank — for example, Bank of America Investments for brokerage services — those accounts are not FDIC insured. Check the account opening documents or contact Bank of America directly to confirm which entity holds your account.
What happens if Bank of America fails
Bank of America is one of the largest banks in the United States and has never failed. However, the FDIC insurance exists precisely because bank failures, though rare, do happen. If Bank of America were to fail, the FDIC would step in immediately. You would likely wake up to news that another bank had assumed Bank of America's deposits, and your account would transfer automatically. You would retain access to your money, though you might experience a brief service interruption while systems transferred.
The FDIC has a history of resolving bank failures quickly. In recent decades, most failed banks were resolved over a weekend, and depositors had access to their insured funds by Monday morning. The FDIC's goal is to minimize disruption and ensure depositors do not lose money within the coverage limits.
Frequently Asked Questions
Does FDIC insurance cover my Bank of America credit card balance or loan?
No. FDIC insurance covers only deposit accounts — checking, savings, money market, and CDs. Credit card balances and loans are not deposits, so they are not covered. If you owe Bank of America money on a credit card and the bank fails, you still owe the debt; the FDIC does not forgive it.
If I have $500,000 in a Bank of America savings account, how much is protected?
Only $250,000 is FDIC insured. The remaining $250,000 is not protected if the bank fails. To protect the full amount, you could split the money between Bank of America and another FDIC-member bank, or open a joint account with another person (which would give you a separate $250,000 limit for their share).
Is my Bank of America IRA covered by FDIC insurance?
Yes, if it is held as a deposit account (savings, checking, or CD). IRAs receive their own $250,000 coverage limit, separate from your individual accounts. If your IRA is invested in stocks or mutual funds through Bank of America Investments, it is not FDIC insured.
What if I have accounts at both Bank of America and another bank?
Each FDIC-member bank has its own $250,000 limit per account category. If you have $200,000 in a Bank of America checking account and $200,000 in a Wells Fargo checking account, both are fully covered because they are at different banks. The FDIC limit does not combine across institutions.
Do I need to do anything to make sure my Bank of America deposits are FDIC insured?
No. FDIC insurance is automatic for all deposit accounts at Bank of America. You do not need to register, pay a fee, or take any action. The only thing you need to do is monitor your balance to ensure it does not exceed $250,000 per account category if you want full coverage.