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

The Federal Deposit Insurance Corporation (FDIC) insures deposits at banks that are members of the FDIC system. If your bank fails, the FDIC pays you back up to $250,000 per account category at that bank. This limit applies per person, per bank — so if you have $300,000 at one bank, only $250,000 is covered. If you have $250,000 at two different FDIC banks, both are fully covered.

Not every bank is FDIC insured. Credit unions use a different system called NCUA insurance (National Credit Union Administration), which also covers up to $250,000 per member per credit union. Online banks, regional banks, and most national banks are FDIC members. You can check whether your bank is insured by searching the FDIC's BankFind tool on their website — enter your bank name and it will show you the insurance status.

FDIC coverage applies only to deposits held in the bank's name. It does not cover stocks, bonds, mutual funds, or safety deposit boxes, even if those products are held at an FDIC bank. If you buy investments through your bank, those are not FDIC protected.

Key Takeaways

  • FDIC insurance protects up to $250,000 per depositor per bank, and you can verify your bank's coverage status using the FDIC's BankFind search tool.
  • Credit unions use NCUA insurance instead of FDIC, but the coverage limit and protection level are the same: $250,000 per member per credit union.
  • The $250,000 limit is per account category, so a joint account is separate from a single account at the same bank, and each is covered to $250,000.
  • Investments like stocks and mutual funds held at a bank are not FDIC insured, even though the bank itself is insured.
  • If you have more than $250,000 to protect at one bank, you can split deposits across multiple account categories or multiple banks to increase coverage.

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

The FDIC counts coverage separately for different account categories at the same bank. A single account in your name is one category. A joint 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 single account, $250,000 in a joint account with your spouse, and $250,000 in a trust account — all at the same bank — and all three amounts are fully covered.

Retirement accounts (IRAs, SEP-IRAs, and similar) are also a separate category, covered to $250,000. If you have both a regular savings account and an IRA at the same bank, each has its own $250,000 protection. The FDIC website lists all account categories and how they are counted.

If you exceed $250,000 in a single category at one bank, only $250,000 is covered. The excess is not insured. This is why people with large sums sometimes split money across multiple banks or use different account categories to stay within the limit.

What happens if your bank fails

Bank failures are rare in the modern U.S., but they do occur. When an FDIC bank fails, the FDIC steps in as the insurer. In most cases, the FDIC arranges for another bank to take over the failed bank's deposits and accounts. You keep your account, your debit card works, and your money is accessible — usually within one or two business days. You do not have to do anything.

If no bank takes over the failed bank's deposits, the FDIC pays you directly. This process typically takes a few weeks. The FDIC will contact you with instructions on how to receive your money. You will receive the full amount up to $250,000 per category.

The FDIC maintains a list of failed banks on its website. Bank failures have become less common since the 2008 financial crisis, but the insurance system exists to protect you if one does occur.

What is not covered by FDIC insurance

FDIC insurance covers money in deposit accounts — savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). It does not cover stocks, bonds, mutual funds, or brokerage accounts, even if you buy them through your bank. It does not cover safe deposit boxes or items stored in them. It does not cover U.S. Treasury securities or other government bonds.

If you have a brokerage account at your bank, that account is typically insured by SIPC (Securities Investor Protection Corporation), not the FDIC. SIPC covers up to $500,000 per customer per brokerage firm, but only for certain types of losses — mainly if the brokerage firm fails or commits fraud. SIPC does not protect you if your investments lose value.

Insurance products like life insurance or annuities sold through a bank are also not FDIC covered. Ask your bank which products are FDIC insured and which are not if you are unsure.

Protecting money above $250,000

If you have more than $250,000 to keep safe, you have several options. The simplest is to split your money across multiple FDIC banks. You could keep $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. Each bank is a separate entity for FDIC purposes.

You can also use different account categories at the same bank. A single account, a joint account, and a trust account are each covered separately. If you have a spouse, you could have a single account ($250,000), a joint account ($250,000), and each spouse could have their own single account at the same bank ($250,000 each), for a total of $750,000 covered.

Some people use sweep accounts, which automatically move money above a certain threshold to other FDIC banks. Your bank can explain whether this service is available and how it works. This approach requires less manual management but may involve fees.

How to check if your bank is FDIC insured

Visit the FDIC's BankFind tool at www.fdic.gov/bankfind. Enter your bank's name or the city where your branch is located. The search will show you whether your bank is FDIC insured and which branches are covered. If your bank is not listed, it is not FDIC insured.

You can also call your bank directly and ask whether it is FDIC insured. Banks are required to display FDIC signage in their branches and on their websites. If you see the FDIC logo, your bank is a member.

For credit unions, use the NCUA's credit union locator at www.ncua.gov. Enter your credit union's name to confirm it is NCUA insured. Credit unions are required to display NCUA signage as well.

What to do if your bank is not insured

If your bank is not FDIC insured, your deposits have no federal protection if the bank fails. This is rare — most banks in the U.S. are FDIC members — but it can happen with very small or specialized banks. If you discover your bank is not insured, consider moving your money to an FDIC bank.

Some banks advertise higher interest rates because they are not FDIC insured. The higher rate is meant to compensate for the extra risk you are taking. Whether that trade-off is worth it depends on your comfort with risk and how much money you are depositing.

Before opening an account at any bank, check its FDIC status. It takes less than a minute and can save you from a serious loss if something goes wrong.

Frequently Asked Questions

If I have $300,000 at one bank, how much is protected?

Only $250,000 is covered by FDIC insurance. The remaining $50,000 is not protected. To protect the full amount, you would need to split it across two banks or use different account categories (like a joint account or trust account) at the same bank, as long as each category stays at or below $250,000.

Does FDIC insurance cover my savings account if the bank is hacked?

No. FDIC insurance protects you if the bank itself fails, not if your account is compromised by fraud or hacking. If someone steals money from your account, that is a separate issue handled by your bank's fraud department and possibly law enforcement. Report unauthorized transactions to your bank immediately.

Are online banks FDIC insured?

Most online banks are FDIC insured, but not all. Check the bank's website or use the FDIC BankFind tool to confirm. Many online banks are actually subsidiaries of larger FDIC banks, so they are covered. The FDIC insurance limit is the same whether your bank is online or has physical branches.

If my credit union fails, am I protected the same way as with a bank?

Yes. Credit unions are insured by the NCUA, not the FDIC, but the coverage is identical: up to $250,000 per member per credit union. The protection works the same way — if your credit union fails, the NCUA steps in and ensures you receive your money.

Can I have more than $250,000 covered at one bank if I use multiple account types?

Yes. Each account category (single, joint, trust, IRA, etc.) is insured separately up to $250,000. So you could have $250,000 in a single account, $250,000 in a joint account, and $250,000 in an IRA at the same bank, for a total of $750,000 covered. The FDIC website lists all account categories and how they are counted.