The FDIC insures up to $250,000 per depositor, per bank, per account ownership category

The Federal Deposit Insurance Corporation (FDIC) is the government agency that insures money you keep in a bank account. If your bank fails, the FDIC pays you back up to a limit. That limit is $250,000 per depositor, per bank, per account type. The $250,000 is the ceiling — if you have less, the FDIC covers all of it.

The key phrase is "per bank." If you have $250,000 at Bank A and $250,000 at Bank B, both are fully insured because they are at different banks. If you have $500,000 at one bank in a single account, only $250,000 is insured. The other $250,000 is not covered if the bank fails.

Not all banks carry FDIC insurance. Most traditional banks do. Credit unions are insured by the National Credit Union Administration (NCUA), which works the same way — $250,000 per member, per credit union. Online banks are usually FDIC-insured, but you should confirm before you deposit money. The bank's website will state whether it is FDIC-insured or NCUA-insured.

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account type, so splitting money across multiple banks protects balances over $250,000.
  • Joint accounts, retirement accounts, and trust accounts are insured separately from your individual account at the same bank, so you can have multiple $250,000 protections.
  • Money market accounts, savings accounts, and checking accounts are all covered under the same $250,000 limit at one bank — they do not each get $250,000.
  • Credit unions use NCUA insurance instead of FDIC, but the $250,000 per-member limit is identical.
  • If your bank is not FDIC-insured, your deposits have no federal insurance protection at all.

How account ownership type changes your coverage

The FDIC counts different account types separately, even at the same bank. This means you can have more than $250,000 insured at one bank if the money is held in different ownership categories.

An individual account in your name alone is insured up to $250,000. A joint account with another person is insured up to $250,000 per owner, so a joint account with two people is covered up to $500,000 total. A retirement account (IRA, Roth IRA, SEP-IRA) is insured separately up to $250,000. A trust account is insured up to $250,000 per beneficiary, up to a maximum of five beneficiaries per trust.

Example: You have $200,000 in your individual checking account, $150,000 in a joint savings account with your spouse, and $100,000 in your IRA at the same bank. All three are insured in full because they fall into different categories. If you had $300,000 in your individual account alone, only $250,000 would be covered.

What happens if your bank fails

Bank failures are rare in the United States, but they do happen. When a bank fails, the FDIC steps in as the insurer. You do not have to file a claim or contact the FDIC yourself. The FDIC automatically pays insured deposits to you, usually within one to three business days.

The FDIC will contact you with information about how to access your money. In most cases, your insured balance is transferred to another bank or you receive a check. You keep the same account number and routing information if your deposits are moved to a successor bank. If no successor bank takes over, the FDIC pays you directly.

Uninsured deposits — money over the $250,000 limit — are not automatically paid back. Those funds become part of the bank's assets, and uninsured depositors may recover some money later if the bank's assets are sold, but recovery is not may provide and can take years.

Account types that are not FDIC-insured

Money in certain accounts does not receive FDIC protection, even if the bank is FDIC-insured. Investment accounts holding stocks, bonds, or mutual funds are not covered by FDIC insurance. Brokerage accounts are protected by SIPC (Securities Investor Protection Corporation) instead, which covers up to $500,000 per customer per brokerage firm, but only for securities and cash held for investment.

Safe deposit boxes are not insured by the FDIC. Anything you store in a safe deposit box — jewelry, documents, cash — is your responsibility. If the bank is robbed or the box is damaged, the FDIC does not cover the loss. Some homeowners or renters insurance policies cover safe deposit box contents, so check your policy.

Cryptocurrency held through a bank or exchange is not FDIC-insured. Money you send to a cryptocurrency platform or wallet has no federal insurance protection. If the platform fails or is hacked, you have no recourse through the FDIC.

How to check if your bank is FDIC-insured

The FDIC maintains a public database called the FDIC Bank Find tool on its website at fdic.gov. You can search by bank name or location to confirm whether a bank is FDIC-insured. The search results show the bank's official name, the city where it is headquartered, and its FDIC certificate number.

Most banks display an FDIC logo on their website or in their branches. If you do not see one, search the FDIC Bank Find tool before you open an account. Online banks and smaller regional banks are sometimes not FDIC-insured, so it is worth verifying.

If you are moving money to a new bank, ask the bank directly whether it is FDIC-insured. The answer should be immediate and clear. If the bank hesitates or says it is "working on" FDIC insurance, that is a red flag.

Strategies for protecting money over $250,000

If you have more than $250,000 to deposit, you have several options. The simplest is to split your money across multiple FDIC-insured banks. $250,000 at Bank A and $250,000 at Bank B means both amounts are fully insured. This works for any amount — you can open accounts at as many banks as you need.

You can also use different account ownership types at the same bank. A joint account with your spouse, a separate individual account, and a retirement account all have their own $250,000 coverage. If you have a trust, you can name multiple beneficiaries and each gets $250,000 of coverage.

Some people use a combination: $250,000 in an individual account at Bank A, $250,000 in a joint account at Bank B, and $250,000 in a retirement account at Bank C. This approach spreads risk across multiple institutions and maximizes insurance coverage. The trade-off is managing multiple accounts and multiple login credentials.

What is not covered by FDIC insurance

FDIC insurance covers the money in your account, but not the interest you expected to earn if the bank fails. If a bank fails and you have $100,000 in a savings account earning 4% interest, the FDIC pays you $100,000 — not $100,000 plus the interest you would have earned.

Losses from fraud or theft are also not FDIC-insured. If someone hacks your account and transfers money out, the FDIC does not cover the loss. Your bank may cover it under its fraud protection policy, but that is separate from FDIC insurance. Report fraud to your bank immediately.

Fees charged by the bank are not refunded by the FDIC. If your bank charges overdraft fees or monthly maintenance fees before it fails, those charges are not reversed by the FDIC. The FDIC pays your account balance as it stood at the time of failure.

Frequently Asked Questions

If I have $300,000 in one account at an FDIC-insured bank, how much is covered?

Only $250,000 is insured. The remaining $50,000 is not covered. If you want to protect the full $300,000, you would need to move $50,000 to a different FDIC-insured bank, or open a joint account or retirement account at the same bank and move money there.

Does FDIC insurance cover money I send to PayPal or Venmo?

No. Money in a PayPal or Venmo account is not FDIC-insured. These platforms hold your money in their own accounts, and you are an unsecured creditor if the company fails. Some payment apps partner with banks to offer FDIC coverage, but you should verify this before depositing large amounts.

If I have a joint account with my spouse, is the $250,000 limit per person or per account?

It is per person. A joint account is insured up to $250,000 per owner. If you and your spouse have a joint account with $500,000, the full amount is covered because it is $250,000 per spouse. If you have $600,000 in a joint account, only $500,000 is insured.

Are savings accounts and checking accounts insured separately?

No. All deposit accounts at the same bank in the same ownership category share one $250,000 limit. If you have $150,000 in checking and $150,000 in savings at the same bank in your name alone, only $250,000 total is insured. The other $50,000 is not covered.

What happens to my money if my bank is not FDIC-insured?

Your deposits have no federal insurance protection. If the bank fails, you become an unsecured creditor and may recover some money from the sale of the bank's assets, but recovery is not may provide. Before opening an account, confirm the bank is FDIC-insured using the FDIC Bank Find tool.