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

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 at each bank where you hold an account. This limit applies to each depositor individually — so if you have $300,000 in a savings account at one bank, the FDIC covers $250,000 and you lose the remaining $50,000 if that bank fails. The $250,000 limit has been in place since 2010 and applies across all FDIC-insured banks nationwide.

The coverage is tied to the bank itself, not to the account type. If you have $150,000 in a savings account and $150,000 in a money market account at the same bank, both are covered because they fall under different account categories. But if you have $200,000 in one savings account and $100,000 in another savings account at the same bank, only $250,000 total is protected — the two savings accounts are counted together.

Not all banks are FDIC-insured. Credit unions use a different system called the National Credit Union Administration (NCUA), which also covers up to $250,000 per member per institution. Online banks, regional banks, and most national banks are FDIC-insured, but you should verify before opening an account. The FDIC website has a tool called BankFind that lets you search any bank by name to confirm coverage.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor per bank, so deposits above that amount at a single bank are not protected.
  • Different account categories at the same bank are insured separately — a savings account and a checking account each get $250,000 coverage.
  • Joint accounts, retirement accounts, and trust accounts have their own $250,000 limits and do not count against your individual account coverage.
  • You can verify whether a bank is FDIC-insured by using the BankFind tool on the FDIC website before opening an account.
  • If you have more than $250,000 to deposit, spreading money across multiple FDIC-insured banks protects all of it.

How account categories change your coverage limits

The FDIC divides accounts into separate categories, and each category gets its own $250,000 limit at the same bank. A single account (held in your name alone) is one category. A joint account (held with another person) is a separate category and is insured up to $250,000 for the account as a whole, not per person. If you and your spouse have a joint savings account with $300,000, only $250,000 is covered.

Retirement accounts — including traditional IRAs, Roth IRAs, and SEP IRAs — are insured separately from your other accounts. You can have $250,000 in a traditional IRA and $250,000 in a Roth IRA at the same bank, and both are fully covered. This applies only to retirement accounts held in your individual name; if you have a joint IRA, coverage works differently and you should contact the bank directly.

Trust accounts are also a separate category. If you set up a revocable living trust and name it as the account owner, the FDIC covers up to $250,000 for that trust account separately from your individual accounts. This is useful for people managing money for beneficiaries or estate planning, but the coverage applies to the trust as a whole, not per beneficiary.

Payable-on-death (POD) accounts and in-trust-for (ITF) accounts — where you name a beneficiary to receive the money if you die — are treated as trust accounts for FDIC purposes. Coverage is $250,000 per beneficiary named, up to a total of $250,000 per account. If you name two beneficiaries on a POD account with $300,000, the FDIC covers $150,000 per beneficiary (totaling $300,000), not $250,000 per person.

What happens if you have more than $250,000 to save

If you have savings above $250,000, the safest approach is to split your money across multiple FDIC-insured banks. You could deposit $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C, and all of it would be protected. The FDIC insures based on the bank, not on the total amount you hold across all banks, so spreading deposits is a straightforward way to protect larger sums.

Some people use sweep accounts or deposit networks offered by banks and brokerages. These services automatically move money between multiple FDIC-insured banks to keep each deposit under $250,000. For example, if you deposit $500,000 into a sweep account, the service might place $250,000 at Bank A and $250,000 at Bank B behind the scenes. You see one account number and one login, but your money is spread across insured banks. Ask your bank whether they offer this service and what fees, if any, apply.

Money market funds and mutual funds are not FDIC-insured, even if held at an FDIC-insured bank. If you want insurance coverage for large amounts, you must keep the money in deposit accounts (savings, checking, money market deposit accounts, or CDs) rather than investment products. Brokerage firms offer a different insurance system called SIPC (Securities Investor Protection Corporation) that covers investment accounts up to $500,000, but that is separate from FDIC coverage.

Coverage for certificates of deposit (CDs)

CDs held at FDIC-insured banks are covered the same way as savings accounts — up to $250,000 per depositor per bank per category. If you have a $200,000 CD and a $100,000 savings account at the same bank, both are counted together under the single-account category, and only $250,000 total is insured. The maturity date of the CD does not change the coverage; a 5-year CD and a 1-year CD at the same bank are still combined.

If you want to protect multiple CDs above $250,000, you can open them at different banks. You could purchase a $250,000 CD at Bank A and a $250,000 CD at Bank B, and both would be fully covered. Some people also use CD ladders (staggering maturity dates) combined with multiple banks to manage large sums while maintaining full insurance protection.

What the FDIC does not cover

The FDIC does not cover safe deposit boxes, even if they are held at an FDIC-insured bank. Items stored in a safe deposit box — jewelry, documents, cash — are not insured by the FDIC. The bank may offer its own coverage for the box itself, but you should ask about that separately.

Investments held at a bank are not FDIC-insured. This includes stocks, bonds, mutual funds, and exchange-traded funds (ETFs), even if you purchase them through your bank's brokerage arm. These products are covered by SIPC (up to $500,000 per account) if held at a brokerage, but not by the FDIC. If you are unsure whether a product is a deposit or an investment, ask the bank directly before putting money in.

Foreign currency deposits and deposits held in foreign branches of U.S. banks are not covered by the FDIC. If you hold money in a foreign currency or at a bank's overseas office, you have no FDIC protection. Deposits at U.S. branches of foreign banks may be covered, but you should verify with the specific bank.

How to check if your bank is FDIC-insured

Use the FDIC BankFind tool at fdic.gov/bankfind to search for any bank by name, city, or state. The tool shows whether the bank is FDIC-insured, which FDIC region covers it, and the date it joined the FDIC. You can also see the bank's most recent financial reports and any enforcement actions taken against it.

Most national banks (Bank of America, Chase, Wells Fargo, Citibank) and regional banks are FDIC-insured. Online banks like Ally, Marcus, and Discover are also FDIC-insured. Credit unions are not FDIC-insured; they use the NCUA system instead, which provides the same $250,000 coverage. If you bank at a credit union, you can verify NCUA coverage at ncua.gov.

When you open a new account, the bank should provide you with FDIC coverage information in writing. If you do not receive it, ask the bank directly. Some banks display FDIC logos on their website or in branches, but the logo alone does not confirm coverage — always verify using BankFind.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in to protect depositors. The FDIC does not require you to file a claim or take any action. Instead, the FDIC either arranges for another bank to take over the failed bank's deposits, or it pays you directly up to $250,000 per account category. This process typically takes a few days to a few weeks, depending on the size of the bank and the complexity of the failure.

The FDIC maintains a reserve fund from insurance premiums paid by banks, so there is no cost to you as a depositor. You do not pay for FDIC coverage, and you do not need to sign up for it — it is automatic at any FDIC-insured bank. The FDIC has not run out of money since it was created in 1933, even during the 2008 financial crisis when many large banks failed.

If your bank fails and you had more than $250,000 in a single account category, you will lose the amount above the limit. This is why spreading money across banks or account categories matters if you have large sums. The FDIC website has a tool called the FDIC Coverage Calculator that lets you enter your account details and see exactly how much is covered at your bank.

Frequently Asked Questions

Does FDIC coverage apply to money I transfer between banks?

Yes. FDIC coverage is based on where the money sits, not on how it got there. If you transfer $200,000 from Bank A to Bank B, it is covered at Bank B up to $250,000 once it arrives. During the transfer itself (usually one to three business days), the money is still covered at whichever bank holds it.

If I have a joint account with my spouse, does each of us get $250,000 coverage?

No. A joint account is insured as a single unit up to $250,000 total, not $250,000 per person. If you and your spouse have a joint savings account with $300,000, only $250,000 is covered. However, if you each have separate individual accounts at the same bank, each account gets its own $250,000 coverage.

Are online banks FDIC-insured?

Most online banks are FDIC-insured, but not all. Ally, Marcus, Discover, and Charles Schwab Bank are FDIC-insured. Some fintech apps and payment services are not. Always check the bank's website or use BankFind to confirm before opening an account.

What if I have money in a brokerage account at my bank?

Brokerage accounts are not FDIC-insured. They are covered by SIPC (Securities Investor Protection Corporation) up to $500,000 per account if the brokerage fails. SIPC is a separate system from the FDIC. If you hold cash in a brokerage account (not invested in stocks or funds), ask the brokerage whether that cash is swept into an FDIC-insured bank account.

Do I need to do anything to activate FDIC coverage?

No. FDIC coverage is automatic at any FDIC-insured bank. You do not need to sign up, pay a fee, or take any action. Simply opening a deposit account at an FDIC-insured bank gives you coverage up to $250,000 per category.