Your money in a savings account is insured up to a limit by the federal government

The Federal Deposit Insurance Corporation (FDIC) insures deposits at most banks up to $250,000 per depositor, per bank, per account ownership category. This means if your bank fails, the FDIC will return your money up to that limit. The insurance is automatic — you do not need to sign up or pay for it.

The $250,000 limit applies to each separate account ownership type at the same bank. A savings account in your name alone is covered separately from a joint savings account you share with someone else at the same bank. If you have $200,000 in a personal savings account and $150,000 in a joint account at the same bank, both are fully covered because they fall under different ownership categories.

Money in a savings account is also safe from the bank's day-to-day operations. Banks are required to keep a portion of deposits in reserve and follow strict lending rules. Your savings account balance does not fluctuate based on the bank's investments or loans — it stays exactly what you deposited unless you withdraw it or earn interest.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor per bank per account ownership type, and this coverage is automatic at most banks.
  • If you have more than $250,000 at one bank, only the amount up to $250,000 is protected, so splitting money across multiple banks or account types can extend your coverage.
  • Money in a savings account is separate from the bank's own finances and investments, so a bank's business problems do not directly affect your balance.
  • Not all banks carry FDIC insurance — credit unions use NCUA insurance instead, and some online banks or specialty institutions may not be insured, so you should verify your bank's coverage before opening an account.

What happens if your bank fails

If a bank becomes insolvent and closes, the FDIC steps in to pay depositors. The FDIC does not mail checks — instead, it arranges for another bank to take over the failed bank's accounts, or it transfers your money directly to a new account at a different bank. This process usually takes a few business days.

During a bank failure, you keep access to your money. The FDIC or the acquiring bank will contact you with instructions on how to access your account. You can continue to use your debit card and online banking, or you can withdraw cash at a branch or ATM. The FDIC has never failed to cover insured deposits since it was created in 1933.

Account types and how they affect your coverage

The FDIC covers different account ownership categories separately. A savings account in your name alone is one category. A joint savings account with another person is a separate category. A savings account held in trust for a beneficiary is another category. This means you can have $250,000 in a personal savings account and $250,000 in a joint savings account at the same bank, and both amounts are fully covered.

Retirement accounts like IRAs also have their own coverage category, up to $250,000 per person per bank. If you have a traditional IRA and a Roth IRA at the same bank, each is covered separately up to $250,000. However, if you have two traditional IRAs at the same bank, they are added together and the combined total is covered up to $250,000.

Money market accounts and certificates of deposit (CDs) are covered under the same $250,000 limit as savings accounts, but they are counted separately by account type. A $200,000 savings account and a $200,000 CD at the same bank are both fully covered because they are different account types.

When you need coverage beyond $250,000

If you have more than $250,000 to keep safe, you can spread your money across multiple banks. Each bank provides its own $250,000 of FDIC coverage, so $250,000 at Bank A and $250,000 at Bank B are both fully protected. You can also use different account ownership categories at the same bank — for example, a personal account, a joint account, and a retirement account.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to split large deposits across multiple banks automatically. You deposit money into one account, and IntraFi divides it among partner banks so that each portion stays under the $250,000 limit. The service is offered through some banks and credit unions at no cost to you.

Banks that do not carry FDIC insurance

Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. NCUA coverage works the same way — up to $250,000 per depositor per credit union per account ownership type. If you use a credit union, check that it is NCUA-insured before opening an account.

Some online banks, investment firms, and specialty financial institutions do not carry deposit insurance. Before you open a savings account anywhere, verify that the institution is FDIC-insured or NCUA-insured. You can search the FDIC's Bank Find tool on its website to confirm whether a specific bank is covered. If an institution is not insured and it fails, you have no federal protection for your money.

How to check if your bank is FDIC-insured

The FDIC maintains a searchable database called Bank Find on its website. You can search by bank name, city, or state to see whether a bank is FDIC-insured and what coverage limits apply to your specific accounts. The search tool also shows you the bank's insurance certificate number and the date it was insured.

You can also call the FDIC directly at 1-877-ASK-FDIC (1-877-275-3342) to ask whether a specific bank is covered. Have the bank's name and location ready. The FDIC can also tell you how much of your money is covered based on your account setup.

Frequently Asked Questions

What if I have more than $250,000 at one bank — is the extra money unprotected?

Yes. Only the first $250,000 is covered by FDIC insurance. Money above that limit is not protected if the bank fails. To protect additional funds, open accounts at different banks or use different account ownership categories at the same bank, such as a personal account and a joint account.

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

No. FDIC insurance protects you only if the bank itself fails. If someone steals your debit card or hacks your online account, that is a separate issue handled by the bank's fraud protection policies and federal consumer protection laws. Report fraud to your bank immediately.

If I move my money to a different bank, do I lose my FDIC coverage?

No. FDIC coverage is not tied to how long you have had an account. As soon as your money is deposited at an FDIC-insured bank, it is covered up to $250,000. You can move money between banks without losing protection.

Are savings bonds or money market funds covered by FDIC insurance?

Savings bonds issued by the U.S. Treasury are not FDIC-insured, but they are backed by the federal government directly, so they are safe. Money market funds are not FDIC-insured because they are investments, not deposits. Keep these separate from your FDIC-covered savings account.

What if my bank is FDIC-insured but it does not display the FDIC logo?

A bank does not have to display the FDIC logo to be insured. Use the FDIC Bank Find tool to verify coverage. If the bank is in the database and shows an active insurance certificate, your deposits are covered regardless of whether the bank advertises it.