Standard checking and savings accounts at FDIC-insured banks are covered up to $250,000 per depositor, per bank

If your bank fails, the Federal Deposit Insurance Corporation (FDIC) reimburses you for money in checking and savings accounts up to the limit. This protection is automatic — you do not need to sign up or pay a fee. The $250,000 limit applies per person, per bank, so if you have $300,000 in a savings account at one bank, the FDIC covers $250,000 and you lose the rest.

The coverage is per depositor, not per account. If you have both a checking and a savings account at the same FDIC-insured bank, the $250,000 limit covers your total across both accounts combined. If you have $150,000 in checking and $120,000 in savings at the same bank, you are covered for all $270,000 because the total is under the limit. If you have $150,000 in checking and $150,000 in savings at the same bank, the FDIC covers $250,000 total, and you lose $50,000.

Key Takeaways

  • Checking and savings accounts at FDIC-insured banks are covered up to $250,000 per depositor per bank, and this protection is automatic with no action required from you.
  • The $250,000 limit is combined across all your checking and savings accounts at the same bank, not separate for each account type.
  • Money market accounts and NOW accounts (negotiable order of withdrawal accounts) are also FDIC-insured under the same $250,000 limit as checking and savings.
  • Accounts held in different ownership categories — such as individual accounts, joint accounts, and retirement accounts — have separate $250,000 limits at the same bank.
  • Most major banks and credit unions are FDIC-insured, but you should confirm your bank's status on the FDIC's official website before opening an account.

How the $250,000 limit works across multiple accounts

The FDIC counts all your checking and savings accounts at one bank as a single pool for the $250,000 limit. This means opening multiple accounts does not increase your coverage. If you want to protect more than $250,000 at the same bank, you need to use different ownership categories.

A joint account has its own $250,000 limit separate from your individual accounts. If you have a personal savings account with $200,000 and a joint checking account with your spouse holding $200,000, both at the same bank, the FDIC covers all $400,000 — $250,000 on your individual account and $250,000 on the joint account. Retirement accounts (IRAs, 401(k)s held at a bank) also have separate $250,000 limits. Trust accounts, accounts held for a minor, and accounts held in a business name each have their own limits as well.

Money market accounts and NOW accounts are covered the same way

Money market accounts and NOW accounts (which allow you to write checks) are FDIC-insured under the same rules as savings accounts. They count toward your $250,000 limit at each bank, combined with any checking or savings accounts you hold there.

If you have $100,000 in a savings account, $80,000 in a money market account, and $90,000 in a checking account all at the same FDIC-insured bank, your total is $270,000. The FDIC covers $250,000 of that $270,000, and you lose $20,000 if the bank fails. The account type does not matter — what matters is the total across all your deposit accounts at that one bank.

Accounts that are not covered by FDIC insurance

Stocks, bonds, mutual funds, and brokerage accounts are not FDIC-insured, even if held at a bank. If you buy stocks through your bank's brokerage arm and the bank fails, the FDIC does not cover those holdings. Brokerage accounts may be covered by SIPC (Securities Investor Protection Corporation) instead, which has different rules and limits.

Safe deposit boxes and their contents are also not FDIC-insured. If you store jewelry, documents, or cash in a safe deposit box and the bank fails, the FDIC does not reimburse you. Safe deposit boxes are the bank's responsibility to maintain, but the contents are yours to insure through homeowners or renters insurance if needed.

Cashier's checks, money orders, and traveler's checks issued by the bank are not FDIC-insured either. If the bank fails before you cash them, you may have a claim against the bank's assets, but the FDIC does not cover them automatically.

How to confirm your bank is FDIC-insured

Most major banks and many smaller banks are FDIC-insured, but not all. The FDIC maintains a searchable database called the FDIC BankFind Suite on its website at fdic.gov. You can search by bank name, city, or state to confirm whether your bank is insured and to see the exact coverage limits for your specific account type.

When you open an account, the bank is required to disclose whether it is FDIC-insured. Look for the FDIC logo on the bank's website or ask a teller directly. If your bank is not FDIC-insured, your deposits have no federal insurance protection if the bank fails, though some state-chartered banks may have state deposit insurance instead.

What happens to your money if an FDIC-insured bank fails

When an FDIC-insured 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 access to your money — your account simply moves to the new bank, often within a day or two. You do not need to do anything; the transfer happens automatically.

If no bank takes over the 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 reimbursement. You are covered up to $250,000 per depositor per bank, so if you have more than that, you receive $250,000 and must file a claim for the rest against the bank's remaining assets.

Frequently Asked Questions

If I have $300,000 in one savings account, how much does the FDIC cover?

The FDIC covers $250,000. You lose $50,000 if the bank fails. To protect the full $300,000, you would need to split it across two different banks, each holding $150,000, or use a different ownership category (such as a joint account or retirement account) at the same bank, which has its own separate $250,000 limit.

Does FDIC insurance cover my checking and savings accounts separately?

No. The $250,000 limit is combined across all your checking, savings, money market, and NOW accounts at the same bank. Account type does not create a separate limit — only ownership category does. A joint account or retirement account at the same bank has its own separate $250,000 limit.

Are online banks FDIC-insured?

Most online banks are FDIC-insured, but you should confirm before opening an account. Search the bank's name in the FDIC BankFind Suite at fdic.gov. Online banks often offer higher interest rates because they have lower overhead, but FDIC coverage works the same way as at brick-and-mortar banks.

What if I have accounts at multiple banks?

Each bank's FDIC coverage is separate. If you have $250,000 at Bank A and $250,000 at Bank B, the FDIC covers all $500,000 — $250,000 at each bank. The limit resets at each different bank you use.

Does FDIC insurance cover my stocks and mutual funds held at a bank?

No. Stocks, bonds, mutual funds, and brokerage accounts are not FDIC-insured. They may be covered by SIPC (Securities Investor Protection Corporation) if held through a brokerage, but SIPC has different limits and rules. Ask your bank which insurance applies to investments you hold there.