Checking and savings accounts are insured separately up to $250,000 each at the same bank

The FDIC treats checking and savings accounts as two different categories, so you get $250,000 of coverage in each one at the same institution. If you have $200,000 in a savings account and $200,000 in a checking account at the same bank, both are fully covered — the FDIC will not combine them and tell you that you are over the limit.

This separation applies only within the same bank. If you move money to a different bank, that bank's checking account and savings account are also insured separately, with their own $250,000 limits. The key is the bank itself, not the type of account.

Money market accounts and certificates of deposit (CDs) are also insured separately from checking and savings, each with their own $250,000 limit at the same bank. So at one bank you could have $250,000 in checking, $250,000 in savings, $250,000 in a money market account, and $250,000 in a CD — all fully covered.

Key Takeaways

  • Checking and savings accounts at the same bank are insured separately, so each account type gets its own $250,000 of FDIC coverage.
  • Money market accounts and CDs are also separate categories, each with $250,000 coverage at the same bank.
  • The $250,000 limit applies per account type per bank, not per account per bank — you cannot split one savings account into two and double your coverage.
  • If you have more than $250,000 in one account type at one bank, the excess is not covered and you should move it to a different bank or account category.

How the FDIC counts accounts by type, not by name

The FDIC does not count individual accounts — it counts account categories. If you have three savings accounts at the same bank under your name, the FDIC adds them together and insures the total up to $250,000. Opening multiple accounts of the same type does not increase your coverage.

This is different from opening accounts in different categories. A savings account and a checking account at the same bank are counted separately because they are different products. The FDIC sees them as two different insurance buckets.

Joint accounts are also a separate category. If you have a joint savings account with your spouse at a bank, and also an individual savings account at the same bank, the FDIC covers each one separately up to $250,000. The joint account is insured as a joint account, and your individual account is insured as an individual account.

What happens if you exceed $250,000 in one account type

If you have $300,000 in a savings account at one bank, the FDIC covers $250,000 and the remaining $50,000 is uninsured. If that bank fails, you lose the $50,000. The bank itself does not protect the excess — only the FDIC insurance covers deposits.

The solution is to move the excess to a different bank. Open a savings account at a second bank and deposit $50,000 there. Now you have $250,000 at Bank A (covered) and $50,000 at Bank B (covered). Both amounts are within the FDIC limit at their respective banks.

You can also move money into a different account type at the same bank. If you have $300,000 in savings at Bank A, you could move $50,000 into a CD at Bank A. The savings account would be covered up to $250,000, and the CD would be covered up to $250,000 as a separate category. Both would be fully protected.

Joint accounts and individual accounts are insured separately

A joint account is insured separately from an individual account, even at the same bank. If you and your spouse have a joint savings account with $200,000, and you also have an individual savings account with $100,000 at the same bank, the FDIC covers both in full — the joint account gets $250,000 of coverage and your individual account gets $250,000 of coverage.

The FDIC insures joint accounts up to $250,000 per owner, not per account. If you have a joint account with your spouse and another joint account with your adult child at the same bank, both are insured separately. The account with your spouse is covered up to $250,000, and the account with your child is also covered up to $250,000.

If you are the sole owner of a joint account — meaning you own it with someone who has no legal claim to the funds — the FDIC may not treat it as a joint account. The safest approach is to have both owners' names on the account and both owners able to withdraw funds.

IRAs and retirement accounts have their own $250,000 limit

An IRA at a bank is insured separately from your checking and savings accounts at the same bank. You get $250,000 of coverage for the IRA and another $250,000 for your checking account and another $250,000 for your savings account — all at the same bank, all separate.

This applies to traditional IRAs, Roth IRAs, and SEP IRAs. Each type of IRA is a separate category. If you have both a traditional IRA and a Roth IRA at the same bank, they are each covered up to $250,000 separately.

Employer retirement accounts like 401(k)s held at a bank are also insured separately, though most 401(k)s are held at investment firms rather than banks. If your employer's 401(k) plan uses a bank as custodian, ask the plan administrator whether the bank account is FDIC-insured and what the coverage limit is.

Online banks and credit unions follow the same rules

Online banks are FDIC-insured the same way as brick-and-mortar banks. Your checking and savings accounts at an online bank are insured separately up to $250,000 each. The fact that you cannot walk into a branch does not change the coverage.

Credit unions are not FDIC-insured — they are insured by the National Credit Union Administration (NCUA), which uses the same structure. Your checking and savings accounts at a credit union are insured separately up to $250,000 each by the NCUA.

If you use both a bank and a credit union, the coverage is separate. A $200,000 savings account at a bank and a $200,000 savings account at a credit union are both fully covered — one by the FDIC and one by the NCUA.

How to track your coverage across multiple banks

The FDIC provides a tool called the FDIC Coverage Calculator on its website. You enter information about your accounts — the bank name, account type, and balance — and the calculator tells you how much is covered and how much is not. It is free and does not require you to log in or provide personal information beyond what you enter.

Keep a spreadsheet of your accounts if you have deposits at multiple banks. List the bank name, account type, balance, and coverage amount for each one. Update it whenever you move money or open a new account. This helps you stay under the $250,000 limit in each category at each bank.

If you are close to the limit in one account type at one bank, contact that bank and ask about moving money to a different account type or to a different bank. The bank's customer service team can explain your options and help you understand how the move will affect your FDIC coverage.

Frequently Asked Questions

If I have $300,000 in checking and $300,000 in savings at one bank, how much is covered?

The FDIC covers $250,000 of the checking account and $250,000 of the savings account, for a total of $500,000 covered. The remaining $50,000 in checking and $50,000 in savings ($100,000 total) are uninsured. You should move the excess to a different bank or account type.

Does a money market account count as a savings account for FDIC purposes?

No. Money market accounts are a separate category from savings accounts. You get $250,000 of coverage for a money market account and another $250,000 for a savings account at the same bank, even if both are held at the same institution.

Are savings accounts at different branches of the same bank insured separately?

No. The FDIC insures by bank, not by branch. If you have a savings account at Branch A and another savings account at Branch B of the same bank, the FDIC adds them together and covers the total up to $250,000. Opening accounts at different branches does not increase your coverage.

What if I have a savings account in my name and a joint savings account with my spouse at the same bank?

Both are covered separately. Your individual savings account is covered up to $250,000, and the joint savings account is also covered up to $250,000. The FDIC treats them as two different accounts because one is individual and one is joint.

Does FDIC coverage apply to money I owe the bank?

No. FDIC coverage protects deposits only. If you have a loan or credit card debt at the same bank, the bank can use your deposits to pay off that debt before the FDIC insurance applies. This is called "setoff." To protect yourself, keep deposits at a different bank from where you borrow.