Your deposits are insured up to $250,000 per account category at FDIC-member banks

The Federal Deposit Insurance Corporation (FDIC) guarantees that if your bank fails, you will not lose money in deposit accounts up to $250,000. This protection applies to checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs) held at banks that display the FDIC logo or are listed on the FDIC's bank search tool at fdic.gov.

The $250,000 limit is per depositor, per bank, per account category. This means you can have $250,000 in a savings account and $250,000 in a checking account at the same bank and both are fully protected. If you have more than $250,000 in a single savings account at one bank, only $250,000 is covered.

Credit unions offer similar protection through the National Credit Union Administration (NCUA), also at $250,000 per account category. If you bank at an institution that is not FDIC or NCUA insured — such as some online-only banks or investment firms — your deposits may not be protected in the same way.

Key Takeaways

  • The FDIC covers up to $250,000 per depositor per bank per account category, so deposits above that amount at a single bank are not protected.
  • You can verify your bank is FDIC-insured by searching fdic.gov or looking for the FDIC logo on the bank's website or in the branch.
  • Joint accounts, retirement accounts, and trust accounts each have their own $250,000 coverage limit separate from your individual accounts at the same bank.
  • FDIC protection applies only to bank failure, not to fraud, theft, or unauthorized withdrawals — those are handled through your bank's fraud procedures.
  • If a bank fails, the FDIC typically transfers your account to another bank or sends you a check within days, not months.

How the $250,000 limit works across different account types

The FDIC divides accounts into categories, and each category gets its own $250,000 protection at the same bank. Your individual savings account is one category. A joint account with your spouse is a separate category. A retirement account (IRA, SEP-IRA, or similar) is another category. A trust account is yet another.

This means you can hold $250,000 in your individual savings account, $250,000 in a joint savings account with your spouse, and $250,000 in your IRA at the same bank, and all three are fully covered. However, if you have two separate individual savings accounts at the same bank, they are combined and treated as one account for coverage purposes — so $150,000 in one and $150,000 in another means only $250,000 total is protected.

If you need to protect more than $250,000 in savings, you can open accounts at different FDIC-insured banks. A $300,000 deposit split between two banks ($150,000 at Bank A and $150,000 at Bank B) is fully protected at both institutions.

What is not covered by FDIC insurance

FDIC insurance protects you only if the bank itself fails — a rare event. It does not protect you from fraud, theft, or unauthorized withdrawals from your account. If someone steals your debit card or hacks your online banking login, that is a fraud matter handled by your bank's dispute process, not by the FDIC.

Investment products held at a bank are also not covered. If you buy stocks, bonds, mutual funds, or brokerage products through your bank, those are not FDIC-insured. Some banks offer these products through a separate brokerage subsidiary, and the bank should disclose this clearly.

Safe deposit boxes and their contents are not covered by FDIC insurance. If you store valuables, documents, or cash in a safe deposit box and the bank fails, the FDIC does not reimburse you for the contents. Safe deposit box insurance is a separate product you would need to purchase.

How to verify your bank is FDIC-insured

Search the FDIC's Bank Find tool at fdic.gov/BankFind. Enter your bank's name and state, and the tool will show you whether it is insured, the insurance certificate number, and the main office address. This is the official way to confirm your bank's status.

You can also look for the FDIC logo on your bank's website, in the branch, or on your account statements. However, the logo alone is not proof — always verify using the Bank Find tool if you are unsure.

If your bank is not FDIC-insured, ask why. Some credit unions are NCUA-insured instead, which offers the same protection. If your financial institution is neither FDIC nor NCUA insured, understand that your deposits are at greater risk if the institution fails.

What happens if your bank fails

Bank failures are uncommon in the United States. When one does occur, the FDIC steps in as the receiver. In most cases, the FDIC arranges for another bank to take over the failed bank's deposits and operations. Your account is transferred to the new bank, and you can access your money within days — often by the next business day.

If no bank takes over the failed bank's operations, the FDIC sends you a check for your insured deposits. This process typically takes a few days to a few weeks, depending on the size and complexity of the failure. The FDIC has a track record of paying out deposits quickly.

You do not need to do anything to receive your FDIC protection. It is automatic for all deposits at insured banks. You do not pay a fee, and you do not need to register or file a claim in advance.

Protecting deposits over $250,000

If you have more than $250,000 in savings, you have several options. The simplest is to spread your money across multiple FDIC-insured banks. A $500,000 deposit split evenly between two banks means each bank holds $250,000, and both amounts are fully protected.

You can also use different account categories at the same bank. For example, you could hold $250,000 in an individual savings account and $250,000 in a joint account with your spouse at the same bank. Both are protected because they are in different categories.

Some banks offer "sweep" accounts that automatically move money between accounts or to other banks to keep each account under the $250,000 limit. Ask your bank whether this service is available and whether it carries any fees.

Frequently Asked Questions

Does FDIC insurance cover my money if someone hacks my account?

No. FDIC insurance covers bank failure only, not fraud or theft. If your account is hacked, contact your bank immediately to report unauthorized transactions. Your bank has fraud procedures separate from FDIC insurance, and federal law limits your liability for unauthorized transfers.

Is my money safe in an online bank?

Yes, if the online bank is FDIC-insured. Many online banks are FDIC members and offer the same $250,000 coverage as traditional banks. Verify the bank's FDIC status using the Bank Find tool at fdic.gov. Online banks are not riskier than brick-and-mortar banks from an insurance standpoint.

What if I have $300,000 at one bank — how much is protected?

Only $250,000 is protected by FDIC insurance. The remaining $50,000 is not covered if the bank fails. To protect the full $300,000, move $50,000 to a different FDIC-insured bank, or open a joint account or retirement account at the same bank to use a separate coverage category.

Does FDIC insurance cover savings bonds or Treasury bills I buy through my bank?

No. Savings bonds, Treasury bills, and other investment products are not FDIC-insured, even if you purchase them through your bank. These are backed by the U.S. government separately, but they are not covered under FDIC deposit insurance.

If my bank fails, how long before I get my money?

In most cases, your deposits are transferred to another bank within one to two business days, and you can access your money immediately. If no bank takes over, the FDIC mails you a check, which typically arrives within a few days to a few weeks depending on the circumstances.