The FDIC insures up to $250,000 per depositor, per bank, per account category

The Federal Deposit Insurance Corporation (FDIC) covers $250,000 of your money at each bank where you have an account. That limit applies to each account category separately — so you can have $250,000 in a checking account and another $250,000 in a savings account at the same bank, and both are fully covered. The coverage is per depositor, meaning if you and your spouse both own a joint account, you each get $250,000 of protection on that account.

This $250,000 limit has been in place since 2010. Before that, the standard was $100,000. The increase was made permanent after the 2008 financial crisis. If your bank fails, the FDIC steps in and makes sure you get your money back up to the limit — you do not have to do anything to claim it.

The coverage applies to money sitting in the account on the day the bank closes. It does not cover investment losses, stock holdings, or mutual funds held at the bank. It also does not cover safe deposit boxes or their contents.

Key Takeaways

  • The FDIC covers $250,000 per person, per bank, per account type, so a joint account gives each owner $250,000 of protection.
  • Money in checking, savings, and money market accounts all count toward the same $250,000 limit at one bank.
  • Retirement accounts (IRAs, 401(k)s) have their own $250,000 limit separate from regular deposit accounts.
  • If you have more than $250,000 at one bank, the amount over the limit is not covered if the bank fails.
  • The FDIC automatically covers your deposits — you do not need to register or take any action to receive protection.

How account ownership type changes your coverage

The FDIC divides accounts into categories based on who owns the money. Each category gets its own $250,000 limit at the same bank. A single account in your name is one category. A joint account with your spouse is a separate category. A trust account is another. This means you can spread your money across different account types at one bank and have each type covered up to $250,000.

A joint account is covered up to $250,000 for each owner. If you and your spouse have a joint savings account with $400,000, the FDIC covers $250,000 for you and $250,000 for your spouse — the full amount is protected. If a third person is added to the account, the coverage does not increase; it remains $250,000 per owner, regardless of how many owners there are.

An Individual Retirement Account (IRA) — whether traditional or Roth — has its own $250,000 limit separate from your regular checking and savings accounts. A 401(k) held at a bank (which is rare) also gets its own $250,000 limit. A revocable trust account (a living trust you set up) is covered up to $250,000 per beneficiary named in the trust, up to a maximum of $250,000 total for the account.

Accounts held in the name of a business, a nonprofit, or a government entity each have their own $250,000 limit. If you own a small business and have a business checking account at the same bank where you have a personal savings account, both are covered separately.

What happens if you have more than $250,000 at one bank

If your balance exceeds $250,000 in a single account category at one bank, only $250,000 is covered. The rest is uninsured. If the bank fails, you lose the amount over the limit. This is the main reason people with large sums of money spread their deposits across multiple banks.

For example, if you have $400,000 in a savings account at Bank A, the FDIC covers $250,000 and you lose $150,000 if the bank fails. If you move $150,000 to a savings account at Bank B, both accounts are now fully covered because each bank's limit is separate. The FDIC insures based on the bank that holds the account, not on the total amount you have across all banks.

You can also increase your coverage by using different account categories at the same bank. If you have $300,000, you could put $250,000 in a savings account and $50,000 in a money market account — both are covered because they are different account types. Or you could open a joint account with your spouse and put $250,000 in it (covered for each of you) while keeping another $250,000 in an individual account in your name.

How to check if your bank is FDIC-insured

Not all banks are FDIC-insured. Credit unions are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 limit but is a separate system. Online banks, regional banks, and most national banks are FDIC-insured, but you should verify before opening an account.

The FDIC maintains a searchable database called BankFind on its website (fdic.gov). You can search by bank name or location to confirm whether a specific bank is insured and to see its FDIC certificate number. If a bank is not listed in BankFind, it is not FDIC-insured. Some banks display the FDIC logo on their website or in their branch, but the database is the official source.

When you open an account, the bank should provide you with FDIC disclosure information. This document explains the coverage limits and account categories. If you do not receive one, you can request it or check the bank's website. The disclosure should tell you exactly how much of your money is covered.

What the FDIC does not cover

The FDIC covers deposits — money you put into the bank. It does not cover investments. If your bank sells you stocks, bonds, mutual funds, or brokerage products, those are not FDIC-insured, even if you bought them at the bank. The bank may fail and your deposits are protected, but your investments are not.

Safe deposit boxes and their contents are not covered. If you store jewelry, documents, or other valuables in a safe deposit box and the bank fails, the FDIC does not reimburse you for what was inside. Safe deposit box contents are your responsibility to insure separately, usually through homeowners or renters insurance.

Accrued interest is covered up to the $250,000 limit, but only the interest that was in the account on the day the bank closed. Interest that accrues after the bank fails is not covered. Cashier's checks, money orders, and traveler's checks issued by the bank are not covered as deposits — they are considered the bank's obligations, not your deposits.

What happens when a bank fails

When an FDIC-insured bank fails, the FDIC takes over and arranges for your deposits to be transferred to another bank or pays you directly. You do not have to file a claim or take any action. The FDIC automatically identifies all accounts and depositors and ensures each person receives up to $250,000.

The process usually takes a few days to a few weeks. In most cases, your money is available at a new bank within one business day. The FDIC will contact you with information about where your deposits have been moved or how to receive payment. If your balance was over $250,000, you will be notified that the amount over the limit is not covered.

Bank failures are rare in the United States. The FDIC has been operating since 1933, and the insurance fund is maintained through premiums paid by member banks, not by taxpayers. Since 2010, only a handful of banks have failed in any given year, and most depositors have received their full coverage without delay.

How to organize your money across multiple banks

If you have more than $250,000 to deposit, you can open accounts at different FDIC-insured banks to ensure all your money is covered. Each bank's $250,000 limit is separate, so $250,000 at Bank A and $250,000 at Bank B means you have $500,000 fully covered.

You can also use different account categories at the same bank to increase coverage. For example, you could have a single account ($250,000 covered), a joint account with your spouse ($250,000 per person, so $500,000 total covered), and an IRA ($250,000 covered) — all at the same bank, all fully protected. The key is understanding that each category has its own limit.

Some people use a service called a deposit sweep or deposit placement service, which automatically moves money across multiple FDIC-insured banks to keep each account under $250,000. These services are offered by some brokerages and banks. They are useful if you have a large amount and do not want to manage multiple bank accounts yourself, but they charge a fee.

Frequently Asked Questions

Does the FDIC cover money in a savings account at an online bank?

Yes, if the online bank is FDIC-insured. Most online banks are FDIC members and offer the same $250,000 coverage as brick-and-mortar banks. Check the bank's website or search the FDIC BankFind database to confirm it is insured before opening an account.

If I have $300,000 in a joint account with my spouse, how much is covered?

The full $300,000 is covered. Joint accounts are insured up to $250,000 per owner, so you and your spouse each have $250,000 of protection on the account. Since your balance is $300,000, both of you are fully covered.

Are credit union accounts covered the same way as bank accounts?

Credit unions are insured by the NCUA, not the FDIC, but the coverage is the same: $250,000 per member, per credit union, per account category. The rules about joint accounts, IRAs, and other account types are also the same.

What if my bank is bought by another bank — do I lose my FDIC coverage?

No. When one FDIC-insured bank buys another, both banks remain FDIC-insured. Your coverage continues without interruption. If you had $250,000 at the acquired bank and $250,000 at the acquiring bank, you now have $250,000 at the combined bank, and the amount over that limit may no longer be covered — so contact the new bank to understand your coverage.

Does FDIC insurance cover money I owe the bank, like overdraft fees?

No. FDIC insurance covers deposits you have made. It does not cover debts you owe the bank. If you have an overdraft or unpaid fees, the bank can deduct those from your insured deposits before the FDIC pays you.