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

If your money sits in a savings account at a bank that holds an FDIC charter, that account is covered. The Federal Deposit Insurance Corporation protects your balance if the bank fails — you get your money back, up to $250,000 per person, per institution. This is automatic. You do not need to sign up, pay a fee, or do anything special. If you have $50,000 in a savings account at Chase, it is covered. If you have $300,000, the first $250,000 is covered and the remaining $50,000 is not.

The $250,000 limit applies to each separate bank, not to your total across all banks. If you have $250,000 at Bank A and $250,000 at Bank B, both are fully covered because they are at different institutions. The coverage also resets for different account ownership categories — a savings account in your name alone is covered separately from a savings account you own jointly with someone else at the same bank.

Not all savings products are the same. Money market accounts at banks are covered the same way as savings accounts. Certificates of deposit (CDs) are covered. But savings accounts at credit unions are not FDIC insured — they are covered by the National Credit Union Administration (NCUA) instead, which works the same way but is a different program. Savings accounts at investment firms, brokerage houses, or non-bank financial companies are not FDIC insured at all.

Key Takeaways

  • FDIC insurance covers savings accounts at banks automatically, with no action required on your part, up to $250,000 per person per bank.
  • The $250,000 limit is per bank, not per person — you can have multiple accounts at different banks and each one is covered separately.
  • Joint accounts, accounts in trust, and accounts in a single name are counted separately for insurance purposes at the same bank.
  • Credit union savings accounts are covered by NCUA, not FDIC, and savings accounts at investment firms or online-only non-bank lenders are not covered by either program.
  • You can check whether a specific bank holds FDIC insurance by searching the FDIC's BankFind tool on their website.

How the $250,000 limit works across multiple accounts

The limit is per depositor, per bank, per ownership category. If you are the sole owner of a savings account and a checking account at the same bank, both balances count toward your single $250,000 limit at that bank. If you have $150,000 in savings and $120,000 in checking, your total is $270,000 — the first $250,000 is covered and $20,000 is not.

A joint account is a separate category. If you and your spouse each own $200,000 in individual savings accounts at Bank A, you are both fully covered — each person has their own $250,000 limit. If you also have a joint savings account with your spouse at the same bank with $100,000 in it, that joint account is covered separately up to $250,000. The joint account does not count against either person's individual limit.

Accounts held in trust, accounts for which you are a beneficiary, and accounts in a minor's name can also be separate categories depending on the structure. The FDIC website has a tool called the FDIC Coverage Calculator where you can enter your specific account setup and see exactly how much is covered. This is worth using if you have more than $250,000 to deposit or if you have accounts in multiple ownership structures.

How to verify your bank is FDIC insured

Not every bank holds an FDIC charter. Some banks operate under state charters without federal insurance, and some online lenders or fintech companies are not banks at all and do not carry FDIC coverage. Before you open an account, you can check the FDIC's BankFind database on their website. Search by bank name or location, and the tool will tell you whether that institution is FDIC insured and what its certificate number is.

Most large national banks — Chase, Bank of America, Wells Fargo, Citibank — are FDIC insured. Most regional banks are as well. Many online banks are FDIC insured even though they have no physical branches. But some online savings platforms, peer-to-peer lending sites, and investment apps are not banks and are not covered. If you are unsure, search the bank name in BankFind. If it does not appear, the account is not FDIC insured.

Your bank statement or account agreement should also state whether the account is FDIC insured. Some banks print this information on the statement itself or in the account terms. If you cannot find it, call the bank's customer service line and ask directly whether your savings account is FDIC insured.

What happens to your money if the bank fails

If a bank closes or fails, the FDIC steps in as the receiver. The agency takes control of the bank's assets and begins paying out insured deposits. In most cases, depositors receive their money within a few business days — sometimes the same day or the next day. The FDIC maintains a reserve fund specifically for this purpose and has never run out of money to pay claims.

You do not have to do anything. You do not file a claim or contact the FDIC yourself. The FDIC works directly with the failed bank's records to identify all depositors and their balances. If your account is within the $250,000 limit, you will be paid automatically. If your balance exceeds $250,000, you will receive $250,000 and the remainder will be treated as an unsecured claim against the bank's remaining assets, which usually means you lose that money.

Bank failures are rare in the modern era. The FDIC was created in 1933 after the Great Depression, and since then it has handled hundreds of bank closures without a single depositor losing money on an insured account. The last major wave of bank failures was in the 1980s and early 1990s. Today, the banking system is heavily regulated and capitalized, so the risk of losing FDIC-insured deposits is very low.

Accounts and products that are not FDIC insured

Savings accounts at credit unions are insured by the NCUA, not the FDIC. The coverage is identical — $250,000 per person per credit union — but it is a separate program. If you have a savings account at a credit union, it is still protected, just under a different agency.

Savings accounts at investment firms, brokerage houses, and fintech companies are usually not FDIC insured. If you have a savings product through a stock brokerage or a robo-advisor, check the account agreement to see what insurance it carries. Some brokerages carry SIPC insurance (Securities Investor Protection Corporation), which covers investment accounts but works differently and has different limits than FDIC insurance.

Money kept outside a bank — in a safe deposit box, under your mattress, or in a physical safe — is not insured by anyone. FDIC insurance only covers deposits held in the bank's name. If you withdraw cash and store it yourself, you bear the full risk of loss or theft.

How to structure accounts if you have more than $250,000

If you have more than $250,000 to save and want full FDIC coverage, you have several options. The simplest is to split your money across multiple banks. Put $250,000 at Bank A and $250,000 at Bank B, and both are fully covered. You can open accounts at as many banks as you need.

You can also use different ownership categories at the same bank. If you and your spouse each have individual savings accounts and a joint savings account at the same bank, you have three separate $250,000 limits. An individual account, a joint account, and a trust account are all counted separately. This lets you cover up to $750,000 at a single bank if you structure it correctly.

Some banks offer sweep accounts or deposit networks that automatically move money between multiple FDIC-insured banks to keep each account under the $250,000 limit. These services are designed for people with large balances who want to keep everything at one institution while maintaining full coverage. Ask your bank whether they offer this service.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is covered?

$250,000 is covered by FDIC insurance. The remaining $50,000 is not protected. If the bank fails, you will receive $250,000 and lose the other $50,000. To cover the full amount, you would need to move $50,000 to a different bank or use a different ownership category at the same bank.

Is my savings account covered if I keep it at an online bank?

It depends on whether the online bank holds an FDIC charter. Most large online banks — Ally, Marcus, Discover, Schwab Bank — are FDIC insured. Search the bank name in the FDIC's BankFind tool to confirm. If it appears in the database, your account is covered.

What if I have a joint savings account with someone else?

A joint account is covered up to $250,000 total for the account itself. Each owner also has a separate $250,000 limit for accounts in their individual name at the same bank. So you and your spouse could each have $250,000 in individual accounts plus $250,000 in a joint account at the same bank, for a total of $750,000 in coverage.

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

No. FDIC insurance only covers losses from bank failure. If someone steals your account information and drains your savings, or if you are scammed into sending money, FDIC insurance does not apply. Your bank may have fraud protection policies, and federal law limits your liability for unauthorized transfers, but that is separate from FDIC coverage.

Are savings bonds or Treasury bills covered by FDIC insurance?

No. FDIC insurance covers deposits held in bank accounts — savings accounts, checking accounts, CDs, and money market accounts. Savings bonds, Treasury bills, stocks, and other investment products are not FDIC insured, even if you buy them through a bank.