Most savings accounts at banks are insured up to $250,000 per depositor, per bank

The Federal Deposit Insurance Corporation (FDIC) insures savings accounts at member banks. If a bank fails, the FDIC pays depositors back up to $250,000 per account owner, per institution. This means your money is protected even if the bank goes under.

Not every savings account is insured the same way. The $250,000 limit applies to each separate ownership category at each bank. If you have $300,000 in one savings account at Bank A, the FDIC covers $250,000 and you lose $50,000. If you move $100,000 to a savings account at Bank B, that $100,000 is covered separately because it is at a different bank.

Credit unions work differently. They use the National Credit Union Administration (NCUA), which also insures up to $250,000 per member, per credit union. The same $250,000 limit applies, but the rules for multiple accounts are slightly different.

Key Takeaways

  • The FDIC insures savings accounts at member banks up to $250,000 per depositor, per bank, so you need to know which banks hold your money.
  • If you have more than $250,000 at one bank, only $250,000 is covered unless you split the money into different ownership categories like individual, joint, or retirement accounts.
  • Money market accounts and NOW accounts at banks are FDIC-insured the same way as savings accounts, but money market funds sold by investment firms are not.
  • Credit unions use NCUA insurance instead of FDIC, with the same $250,000 limit per member per credit union.
  • Online banks are FDIC members just like brick-and-mortar banks, so your savings account at an online bank gets the same $250,000 protection.

How the $250,000 limit works across multiple accounts

The FDIC counts each ownership category separately. If you have a savings account in your name alone and a joint savings account with your spouse at the same bank, each account gets its own $250,000 coverage. Your individual account is covered up to $250,000, and the joint account is covered up to $250,000 as a separate deposit.

Retirement accounts also count separately. A traditional IRA at Bank A gets $250,000 coverage. A Roth IRA at the same bank gets another $250,000 coverage. A regular savings account in your name at Bank A gets a third $250,000 coverage. The bank is the same, but the ownership categories are different, so the FDIC treats them as separate deposits.

If you have $500,000 and want all of it insured, you can split it between two banks. Put $250,000 in a savings account at Bank A and $250,000 in a savings account at Bank B. Both amounts are now fully covered because they are at different institutions.

What types of savings accounts are covered

Standard savings accounts are FDIC-insured. So are money market accounts at banks, NOW accounts (negotiated order of withdrawal accounts), and savings deposits held in a bank's trust department. If the account is held at an FDIC member bank and earns interest, it is almost certainly covered.

Certificates of deposit (CDs) are also FDIC-insured up to $250,000 per depositor, per bank. If you have a CD and a savings account at the same bank, they share the $250,000 limit because they are both in the same ownership category. A $150,000 CD and a $150,000 savings account at the same bank means only $250,000 total is covered.

Money market funds sold through investment brokers are not FDIC-insured. These are different from money market accounts at banks. If your bank offers a money market account, it is insured. If a brokerage or investment firm sells you a money market fund, it is not.

Accounts that are not covered by FDIC insurance

Stocks, bonds, mutual funds, and investment accounts held at a bank are not FDIC-insured. The FDIC only covers deposit products — accounts where you deposit money and the bank holds it. If you buy stocks through your bank's brokerage arm, those stocks are not covered by FDIC insurance.

Safe deposit boxes are not covered. If you store valuables, documents, or cash in a safe deposit box at a bank, the FDIC does not insure the contents if the bank fails. The bank may have its own insurance or liability limits, but that is separate from FDIC coverage.

Savings bonds and Treasury securities held at a bank are not FDIC-insured. These are backed by the U.S. government directly, not by the FDIC. If you buy a Treasury bill through your bank, the Treasury backs it, not the FDIC.

How to check if your bank is FDIC-insured

The FDIC maintains a public database called the FDIC Bank Find tool at fdic.gov. You can search by bank name or location to see if a bank is an FDIC member. Most banks display an FDIC logo on their website or in their branch, but the Bank Find tool is the official source.

If you are opening an account at a new bank, ask directly whether it is FDIC-insured. The bank is required to tell you. If a bank is not FDIC-insured, your deposits have no federal protection if the bank fails.

Online banks are FDIC members if they are chartered as banks. Most online savings accounts offer competitive interest rates specifically because they have lower overhead costs, but they still carry the same $250,000 FDIC coverage as traditional banks.

What happens if a bank fails

If an FDIC member bank fails, the FDIC steps in and pays depositors. The FDIC does not mail checks immediately. Instead, it typically arranges for another bank to take over the failed bank's deposits, and your account transfers to the new bank with your balance intact. This usually happens over a weekend, and you can access your money on Monday.

If no bank takes over the deposits, the FDIC mails checks to depositors. This process can take weeks or months, depending on the size of the bank and the number of accounts. The FDIC has never failed to pay insured deposits in full since it was created in 1933.

Amounts over $250,000 are not protected. If you had $300,000 in a savings account at a failed bank, you would receive $250,000 from the FDIC and lose $50,000. This is why splitting large amounts across multiple banks or ownership categories matters.

Joint accounts and FDIC coverage

A joint savings account is insured separately from individual accounts. If you and your spouse have a joint savings account with $300,000 at Bank A, the FDIC covers $250,000 of that joint account. If you also have an individual savings account with $100,000 at the same bank, that individual account is covered in full because it is a different ownership category.

Each owner of a joint account is insured separately up to $250,000. If you and your spouse have a joint account with $300,000, the FDIC does not simply cover $250,000 total. Instead, it covers up to $250,000 of your share and up to $250,000 of your spouse's share. If the account is split 50-50, you each have $150,000 covered, for a total of $300,000 in coverage.

This rule applies only if the account is truly joint — both owners have equal rights to the money. If one person is listed as the account owner and another is listed as a beneficiary or authorized user, the account is not treated as joint for FDIC purposes.

Frequently Asked Questions

If I have $500,000 in savings, how do I make sure all of it is insured?

Open savings accounts at two different FDIC member banks and put $250,000 at each one. Each bank will cover up to $250,000 per depositor. You can also split the money into different ownership categories at the same bank — for example, an individual account, a joint account with your spouse, and a retirement account — but you still need to stay within $250,000 per category per bank.

Are online savings accounts insured the same way as bank savings accounts?

Yes, if the online bank is FDIC-insured. Most online banks are chartered as banks and carry full FDIC insurance. Check the bank's website or use the FDIC Bank Find tool to confirm. Online banks often offer higher interest rates because they have lower costs, but the insurance protection is identical.

What if I have a savings account and a CD at the same bank?

They share the same $250,000 limit because they are both in the same ownership category. If you have a $150,000 savings account and a $150,000 CD at the same bank, only $250,000 total is covered. To insure both fully, move one to a different bank or put one in a different ownership category like a joint account or retirement account.

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

No. FDIC insurance covers bank failure only. If someone steals money from your account or commits fraud, that is a separate issue between you and the bank. Contact your bank and file a report with law enforcement, but FDIC insurance will not reimburse you.

If my bank is bought by another bank, is my money still insured?

Yes. When one bank buys another, the FDIC coverage continues. Your account transfers to the new bank with the same $250,000 protection. Bank mergers do not affect FDIC insurance.