Your deposits are insured up to $250,000 per account owner at banks and credit unions that carry federal insurance

The Federal Deposit Insurance Corporation (FDIC) insures deposits at most banks, and the National Credit Union Administration (NCUA) insures deposits at most credit unions. If the bank or credit union fails, you get your money back up to the insurance limit. This is not a promise the bank makes to you — it is a federal may provide backed by the U.S. government.

The standard insurance limit is $250,000 per depositor, per insured bank, per ownership category. That means if you have $250,000 in a checking account and $250,000 in a savings account at the same bank, both are covered. If you have $500,000 at one bank, only $250,000 is insured and you lose the rest if the bank fails.

Not every bank or credit union carries this insurance. Before you open an account, check the FDIC or NCUA website to confirm the institution is insured. If it is not, your money has no federal protection if the institution closes.

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank, and the NCUA insures up to $250,000 per person per credit union, regardless of how many accounts you hold there.
  • Money in a savings account, checking account, or money market account at the same bank all count toward the same $250,000 limit.
  • You can hold more than $250,000 safely by spreading deposits across different banks, since each bank's insurance is separate.
  • Verify that your bank or credit union is FDIC or NCUA insured before opening an account, because uninsured institutions offer no federal protection.
  • If a bank fails, the FDIC or NCUA pays out insured deposits within days, though the process can take longer if your account is complicated.

How the $250,000 limit works across multiple accounts

The insurance limit applies to you as a person at each institution, not to each account. If you have three savings accounts at the same bank, the total across all three is capped at $250,000. If you have $100,000 in one savings account and $200,000 in another at the same bank, you are covered for all $300,000 because the total is under the limit. If you have $200,000 in one account and $100,000 in another, you are still covered for all $300,000.

The exception is money held in different ownership categories. A savings account in your name alone is insured separately from a savings account you hold jointly with a spouse. A savings account you hold as a trustee for a minor is insured separately from your personal account. Each category gets its own $250,000 limit at the same bank.

This means a married couple can hold up to $500,000 safely at one bank — $250,000 in individual accounts and $250,000 in a joint account. A parent holding money in trust for a child can hold another $250,000 in a separate trust account at the same bank.

Spreading money across banks to exceed the insurance limit

If you have more than $250,000 to save, you can hold it all safely by using multiple banks. Money at Bank A is insured separately from money at Bank B. You could hold $250,000 at five different banks and have all $1.25 million covered.

The bank does not have to be a different company — it can be a different branch of the same company, as long as each branch is a separate legal entity. However, most people find it simpler to use different banks entirely. Online banks, regional banks, and national banks all carry FDIC insurance if they are members, so you have many options.

Keep a list of which banks hold your money and how much is at each one. If you move money between accounts or add deposits, update your list so you know whether you are still within the $250,000 limit at each institution.

What happens if a bank fails

Bank failures are rare in the modern U.S., but they do happen. When a bank fails, the FDIC steps in and pays out insured deposits. You do not have to do anything — the FDIC finds you using the account information the bank has on file and sends the money to you.

The payout usually arrives within one to three business days. In complex cases — such as when you have multiple accounts or disputed ownership — it can take longer. The FDIC has paid out deposits within days in recent bank failures, though you should not count on the fastest timeline.

If your deposit exceeds the $250,000 limit, you lose the amount over the limit. The bank's failure does not change this. The FDIC will not make an exception or negotiate a partial recovery.

Accounts and ownership types that affect your coverage

The FDIC recognizes several ownership categories, and each gets its own $250,000 limit at the same bank. A single account in your name alone is one category. A joint account with your spouse is a separate category. A payable-on-death account (where you name a beneficiary) is a third category. A trust account is a fourth.

This matters because you can hold more money safely by using different ownership structures. A married couple could hold $250,000 in individual accounts (each person's $250,000) plus $250,000 in a joint account, for a total of $750,000 at one bank, all covered.

Money market accounts, checking accounts, and savings accounts all count toward the same limit within the same ownership category. A certificate of deposit (CD) also counts toward the limit. The type of account does not matter — only the ownership structure and the bank.

Uninsured institutions and where to check

Most banks and credit unions carry federal insurance, but not all. Some very small institutions, some online banks, and some alternative financial services do not. If your institution is not insured and it fails, you have no federal protection and may lose your entire deposit.

Check the FDIC website (fdic.gov) to search for your bank by name and location. The search tool tells you whether the bank is insured and what the coverage limits are. For credit unions, use the NCUA website (ncua.gov) and search their member directory.

If your bank is not listed as insured, contact the bank directly and ask whether it carries FDIC or NCUA insurance. If it does not, consider moving your money to an insured institution.

What insurance does not cover

FDIC and NCUA insurance covers money you deposit — checking accounts, savings accounts, CDs, and money market accounts. It does not cover investments held at the bank, such as stocks, bonds, mutual funds, or brokerage accounts. If you buy stocks through your bank's brokerage arm, those stocks are not FDIC insured.

Insurance also does not cover safe deposit boxes or items stored in them. If you keep jewelry, documents, or other valuables in a safe deposit box at the bank and the bank fails, the contents are not covered by FDIC insurance. The bank may have its own liability coverage, but that is separate from deposit insurance.

Cryptocurrency held at a bank is not covered. Some banks now hold cryptocurrency for customers, but the FDIC does not insure it. If the bank fails, you may lose the cryptocurrency.

Frequently Asked Questions

What if I have $300,000 at one bank — how much do I lose if it fails?

You lose $50,000. The FDIC insures up to $250,000 per person per bank, so only $250,000 is covered. The remaining $50,000 is not insured and you would not recover it. To protect all $300,000, you would need to move $50,000 to a different bank.

Does my savings account stay safe if the bank is bought by another bank?

Yes. If Bank A fails and is bought by Bank B, your deposits transfer to Bank B and remain insured. The FDIC ensures continuity of coverage during bank mergers and failures. You do not lose protection because of a change in ownership.

Are online banks as safe as brick-and-mortar banks?

If the online bank is FDIC insured, your deposits have the same federal protection as at any other bank. Check the FDIC website to confirm the online bank is a member. Many online banks are insured; some are not. The physical location of the bank does not matter — only whether it carries insurance.

What if I have a joint account with someone — does each person get $250,000 coverage?

Yes. A joint account is insured up to $250,000 total for the account, but each owner is insured separately. If you and your spouse hold a joint account with $300,000, the FDIC covers $250,000. However, if you each also hold individual accounts at the same bank, each individual account gets its own $250,000 limit.

Can I call the FDIC if my bank fails to get my money back faster?

The FDIC handles payouts automatically based on the bank's records. Calling does not speed up the process. If you have questions about your coverage or want to confirm your account is insured before a failure happens, you can contact the FDIC, but once a bank fails, the payout timeline is set by the FDIC's process, not by individual requests.