FDIC insurance covers up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) protects your money in a savings account if the bank fails. The standard coverage limit is $250,000 per depositor, per insured bank, per ownership category. That means if you have $250,000 or less in a savings account at one FDIC-insured bank, all of it is protected. If you have more than $250,000 at that same bank, only $250,000 is covered—the rest is not.

FDIC insurance is automatic. You do not need to sign up, pay a fee, or do anything to activate it. If your bank is FDIC-insured (which most banks are), your savings account is covered the moment you open it. The FDIC has protected deposits since 1933, and no depositor has lost a single penny of insured funds.

The $250,000 limit applies to each bank separately. If you have $250,000 at Bank A and $250,000 at Bank B, both amounts are fully protected because they are at different banks. The FDIC counts each bank as a separate entity, even if they are owned by the same parent company.

Key Takeaways

  • FDIC insurance protects up to $250,000 per person per bank, and this coverage is automatic at all FDIC-insured banks.
  • Money over $250,000 at the same bank is not protected, so splitting deposits across multiple banks protects larger amounts.
  • Different ownership categories (individual, joint, retirement, trust) each get their own $250,000 limit at the same bank.
  • You can check whether your bank is FDIC-insured by searching the FDIC's bank database on their website.
  • Credit unions use a similar system called NCUA insurance, which also covers up to $250,000 per depositor.

How ownership categories change your coverage

The $250,000 limit is tied to how you own the account, not just to you as a person. A savings account in your name alone gets $250,000 of coverage. A joint savings account with your spouse gets a separate $250,000 of coverage. A retirement account (IRA, Roth IRA, SEP-IRA) gets its own $250,000 of coverage. A trust account gets its own $250,000 of coverage. Each category is counted separately at the same bank.

This means you can have more than $250,000 protected at one bank if you use different ownership categories. For example, you could have $250,000 in an individual savings account, $250,000 in a joint savings account with your spouse, and $250,000 in a traditional IRA—all at the same bank, all fully protected. The total is $750,000 covered, but each category has its own $250,000 limit.

Joint accounts are split equally between owners for coverage purposes. If you and your spouse have a joint savings account with $500,000, the FDIC covers $250,000 for you and $250,000 for your spouse, protecting the full amount. If you have a joint account with someone who is not your spouse, the same rule applies—each owner gets $250,000 of coverage.

What is not covered by FDIC insurance

FDIC insurance covers deposits only, not investments. If your bank sells you stocks, bonds, mutual funds, or brokerage products, those are not covered by FDIC insurance. Money market accounts held at a brokerage are also not covered. If you buy these products through your bank, ask whether they are FDIC-insured or held in a brokerage account—the answer determines your protection.

Safe deposit boxes are not covered. If you store cash, jewelry, or documents in a safe deposit box at your bank, the FDIC does not protect the contents if the bank fails. Safe deposit boxes are the bank's responsibility to secure, but not the FDIC's responsibility to insure.

Cryptocurrency, even if you buy it through your bank, is not FDIC-insured. Prepaid cards, gift cards, and traveler's checks are also not covered. If you are unsure whether a specific product is a deposit, ask your bank directly—they can tell you whether it falls under FDIC insurance.

Checking whether your bank is FDIC-insured

Most banks in the United States are FDIC-insured, but not all. Online banks, credit unions, and smaller regional banks may use different insurance systems. You can verify your bank's FDIC status by visiting the FDIC's Bank Find tool on their website (fdic.gov). Enter your bank's name or location, and the tool will tell you whether it is insured and what the coverage limits are.

Your bank statement or account agreement should also state whether it is FDIC-insured. Look for the FDIC logo on your bank's website or in your account materials. If you do not see it, contact your bank and ask directly. They are required to tell you whether your deposits are covered.

Credit unions use NCUA insurance (National Credit Union Administration) instead of FDIC insurance, but the coverage is the same: $250,000 per depositor per credit union per ownership category. The rules and limits are nearly identical to FDIC coverage.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in to protect your money. You do not lose access to your funds. The FDIC either arranges for another bank to take over the failed bank's deposits, or it pays you directly up to the $250,000 limit. In most cases, you regain access to your money within a few business days.

The FDIC has a history of moving quickly. When a bank closes, the FDIC typically arranges a transfer to another bank over a weekend, so customers can access their accounts on Monday morning. If no bank takes over the deposits, the FDIC mails checks to depositors, usually within a few weeks. This has happened only a handful of times in recent decades.

Money over the $250,000 limit is treated as a claim against the failed bank's assets. You may recover some of it, but there is no may provide. This is why keeping deposits under $250,000 per bank matters if you have substantial savings.

Strategies for protecting more than $250,000

If you have more than $250,000 in savings, you can protect all of it by spreading deposits across multiple FDIC-insured banks. Open a savings account at Bank A with $250,000, a savings account at Bank B with $250,000, and so on. Each bank's $250,000 is fully protected. This strategy works for any amount—there is no limit to how many banks you can use.

You can also use different ownership categories at the same bank. An individual account, a joint account, and a retirement account at the same bank each get $250,000 of coverage. If you have a spouse, you can each open individual accounts and a joint account at the same bank, covering up to $750,000 total.

Some banks offer "sweep accounts" or "linked accounts" that automatically move money between accounts to keep each one under the $250,000 limit. Ask your bank whether this service is available. It can simplify managing large amounts of money across multiple accounts.

Coverage for special account types

Retirement accounts (traditional IRAs, Roth IRAs, SEP-IRAs, and SIMPLE IRAs) each get their own $250,000 of FDIC coverage, separate from your individual savings account. This means you can have $250,000 in a traditional IRA and $250,000 in a Roth IRA at the same bank, and both are fully protected.

Trust accounts are also covered separately. If you set up a revocable living trust and fund a savings account in the trust's name, that account gets $250,000 of coverage. The coverage applies to the trust itself, not to each beneficiary, so a trust with multiple beneficiaries still has only one $250,000 limit.

Accounts held in the name of a minor (such as a custodial account or UTMA account) are covered separately from the parent's individual account. The minor is treated as the depositor for coverage purposes, so a parent and child can each have $250,000 in separate accounts at the same bank.

Frequently Asked Questions

If I have $300,000 in a savings account at one bank, how much is protected?

Only $250,000 is protected. The remaining $50,000 is not covered by FDIC insurance. If the bank fails, you would lose that $50,000. To protect the full $300,000, you would need to move $50,000 to a savings account at a different FDIC-insured bank.

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

No. FDIC insurance protects deposits only if the bank fails. If someone steals your money, your bank account is hacked, or you are scammed, FDIC insurance does not cover the loss. Contact your bank and law enforcement if you believe fraud has occurred.

Are online banks FDIC-insured?

Most online banks are FDIC-insured, but you should verify. Use the FDIC's Bank Find tool to check your online bank's status. Many online banks are subsidiaries of larger FDIC-insured banks, so your deposits are covered the same way as at a traditional bank.

What if I have multiple savings accounts at the same bank?

All savings accounts in your individual name at the same bank are added together for coverage purposes. If you have three individual savings accounts totaling $300,000 at one bank, only $250,000 is protected. The FDIC does not count each account separately—it counts all deposits in the same ownership category at the same bank as one total.

Is money in a money market account at my bank covered by FDIC insurance?

Yes, if it is a deposit-based money market account offered by your bank. These are covered up to $250,000 per depositor per bank. However, if your bank sells you a money market mutual fund or a brokerage money market account, it is not FDIC-insured. Ask your bank which type you have.