FDIC Insurance Covers Up to $250,000 Per Account
The Federal Deposit Insurance Corporation (FDIC) protects your money in a savings account up to $250,000 per depositor, per bank, per account category. If your bank fails, the FDIC pays you back dollar-for-dollar up to that limit. This protection is automatic — you do not have to sign up or pay a fee for it.
The $250,000 limit applies to each separate account category at the same bank. A regular savings account, a money market account, and a checking account are three different categories, so you could have $250,000 in each one at the same bank and still be fully covered. A joint account counts as a separate category from a single-name account, so a joint savings account with your spouse gets its own $250,000 protection.
Money held in trust for a minor, or in a retirement account like an IRA, also gets separate $250,000 coverage. If you are unsure whether your account type qualifies for its own coverage limit, call your bank and ask them directly — they can tell you in one call.
Key Takeaways
- The FDIC insures up to $250,000 per depositor per bank per account category, and this protection is automatic at any FDIC-member bank.
- Money above $250,000 at the same bank in the same account category is not insured, so splitting deposits across banks or account types protects larger amounts.
- Joint accounts, retirement accounts, and trust accounts each get their own $250,000 limit separate from your individual savings account.
- Not all banks are FDIC members — credit unions use NCUA insurance instead, which works the same way but is a different program.
- Bank failure is rare, but the insurance exists specifically to protect you if it happens, so the amount you keep safe depends on your bank's membership status and your account structure.
How to Check If Your Bank Is FDIC Insured
Only FDIC-member banks offer this protection. Most banks you have heard of are members, but not all. Credit unions are insured by the National Credit Union Administration (NCUA) instead, which offers the same $250,000 per account protection under different rules.
To confirm your bank is FDIC insured, look for the FDIC logo on your bank's website or in the branch. You can also search the FDIC's Bank Find tool on their website — type in your bank's name and it will tell you whether they are a member and what coverage applies to your specific account. If your bank is not listed, it is not FDIC insured and your money has no federal protection if the bank fails.
If you bank with a credit union, check their website for the NCUA logo or search the NCUA's credit union locator. The coverage works the same way: $250,000 per account category, automatic, no action needed on your part.
What Happens If You Keep More Than $250,000 at One Bank
Money above $250,000 in the same account category at the same bank is not insured. If the bank fails, you lose that uninsured portion. This is rare — bank failures are uncommon in the United States — but it is the real risk you take by concentrating large amounts in one place.
If you have more than $250,000 to keep in savings, you have three options. First, you can split the money across multiple banks, keeping $250,000 or less at each one. Second, you can use different account categories at the same bank — a savings account, a money market account, and a checking account each get separate coverage. Third, you can open a joint account with another person, which gets its own $250,000 limit, though this means the other person has legal access to the money.
Some people use a combination of these strategies. For example, you might keep $250,000 in your individual savings account at Bank A, $250,000 in a joint savings account with your spouse at Bank A, and another $250,000 in your individual savings account at Bank B. All three amounts would be fully insured.
Account Types and Their Separate Coverage Limits
| Account Type | Coverage Limit Per Bank | Notes |
|---|---|---|
| Individual savings or checking | $250,000 | Covers accounts in your name only |
| Joint account | $250,000 | Separate limit from individual accounts; each owner's share is insured |
| Money market account | $250,000 | Separate category from savings; counts as its own limit |
| IRA or retirement account | $250,000 | Separate limit; does not count toward individual account limit |
| Trust account | $250,000 per beneficiary | Coverage depends on how the trust is structured; ask your bank |
| Account held for a minor | $250,000 | Separate limit from parent's individual account |
Why You Might Keep Money Above the Insurance Limit
Some people keep more than $250,000 at a single bank even though the excess is not insured. They do this because the bank offers a higher interest rate, because they use the bank for other services, or because they believe the bank is too large to fail. These are personal decisions, not financial advice — the point is that you should understand the trade-off you are making.
If you keep uninsured money at a bank, you are betting that the bank will not fail. For very large banks, this bet has historically been safe, but it is still a bet. The FDIC insurance exists precisely because banks can fail, even large ones. If you are uncomfortable with that risk, splitting your money across banks or account types is the way to remove it.
Moving Money Between Banks to Stay Protected
If you have more than $250,000 and want to keep all of it insured, you will need to move some of it to another bank. This is straightforward: open a savings account at a second bank, then transfer money from your first bank to the second. The transfer usually takes one to three business days. You can repeat this process at as many banks as you need.
Some people worry that moving money will affect their credit score or cause problems with their current bank. It will not. Banks do not penalize you for moving money out, and transfers between banks do not show up on your credit report. The only thing to watch for is whether your first bank charges a fee for closing the account — many do not, but some charge $25 to $100 if you close within a certain period. Read your account agreement or call and ask before you close.
Frequently Asked Questions
Does FDIC insurance cover money in a CD or money market account?
Yes, both CDs and money market accounts are covered up to $250,000 per bank, and they count as separate account categories from a regular savings account. You could have $250,000 in a savings account, $250,000 in a CD, and $250,000 in a money market account at the same bank and be fully insured on all three.
What if I have a joint account with my spouse — does each of us get $250,000 coverage?
Yes. A joint account gets its own $250,000 limit, separate from either spouse's individual account. If you each also have individual savings accounts at the same bank, those are covered separately. So you could have $250,000 in a joint account plus $250,000 in your individual account plus $250,000 in your spouse's individual account at the same bank, all fully insured.
If my bank fails, how long does it take to get my money back?
The FDIC typically pays depositors within a few business days of a bank failure. In most cases, your money is available in a new account at another bank or directly deposited to you within one week. The FDIC has a track record of paying quickly, though the exact timeline depends on how complex your account structure is.
Are online banks FDIC insured?
Most online banks are FDIC members and offer the same $250,000 per account protection as brick-and-mortar banks. Check the bank's website for the FDIC logo or search the FDIC Bank Find tool to confirm. Some online banks are not FDIC insured, so it is worth verifying before you open an account.
What if I have money in multiple accounts at the same bank under different names — like my name and my business name?
Each account in a different legal name gets its own $250,000 coverage. An account in your personal name and an account in your business name are treated as separate depositors, so each is insured up to $250,000. Ask your bank to confirm how they categorize your specific accounts.