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

The Federal Deposit Insurance Corporation (FDIC) insures savings accounts up to $250,000 per person at each bank where you hold an account. That limit applies to each account category separately — so you can have $250,000 in a regular savings account and another $250,000 in a money market account at the same bank, and both are covered.

The $250,000 limit has been in place since 2010. It covers the full balance if your bank fails, meaning you will not lose money even if the institution closes and cannot pay back depositors. The FDIC does not charge you for this protection — it is built into the banking system.

If you have more than $250,000 at a single bank, the amount over that limit is not insured. Money in accounts at different banks is insured separately, so spreading deposits across multiple institutions protects larger balances.

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account category — so $250,000 in savings and $250,000 in a money market account at the same bank are both covered.
  • Joint accounts are insured separately from individual accounts, meaning a married couple can each have $250,000 in their own name plus $250,000 in a joint account at the same bank.
  • Deposits at different banks are insured separately, so you can protect balances over $250,000 by splitting money across multiple FDIC-insured institutions.
  • The FDIC does not cover investment accounts, stocks, bonds, mutual funds, or money held outside the bank — only deposits in checking, savings, and money market accounts.
  • If a bank fails, the FDIC typically transfers your insured deposits to another bank or sends you a check within a few business days.

How the $250,000 limit breaks down by account type

The FDIC treats different account categories as separate for insurance purposes. This means you can hold up to $250,000 in each category at the same bank and have all of it covered.

The main categories are: single accounts (held in one person's name), joint accounts (held by two or more people together), retirement accounts (IRAs and certain other retirement plans), trust accounts, and accounts held for a minor. Each category has its own $250,000 limit at each bank.

A practical example: you could have $250,000 in a savings account in your name, $250,000 in a joint savings account with your spouse, and $250,000 in an IRA at the same bank, and all three would be fully insured. The categories do not share the limit.

What happens when you exceed $250,000 at one bank

Money over $250,000 in the same account category at the same bank is not insured by the FDIC. If the bank fails, you lose access to the uninsured portion.

The most straightforward way to protect balances over $250,000 is to open accounts at different FDIC-insured banks. A $500,000 savings account split into two $250,000 accounts at two different banks means both portions are fully covered. You can use the FDIC's Bank Find tool on their website to confirm that a bank is FDIC-insured before moving money.

Some people use sweep accounts or deposit networks offered by brokerages or investment firms. These services automatically move deposits across multiple FDIC-insured banks to keep each account under the $250,000 limit. Ask your bank or financial institution whether they offer this service if you regularly hold large balances.

Account types that are not covered

FDIC insurance covers deposits — money you place in checking, savings, money market, and certain other deposit accounts. It does not cover investments or other financial products held at the bank.

Stocks, bonds, mutual funds, exchange-traded funds (ETFs), and brokerage accounts are not FDIC-insured, even if you buy them through your bank. Safe deposit boxes and their contents are also not covered. If you hold a certificate of deposit (CD), it is covered up to $250,000 like any other deposit, but only the CD itself — not any investments inside it.

Money held outside a bank — in a wallet, at home, or with a non-bank financial company — receives no FDIC protection. Only deposits at FDIC-insured institutions are covered.

How joint accounts and retirement accounts are insured

Joint accounts are insured separately from individual accounts. If you and your spouse each have $250,000 in individual savings accounts and another $250,000 in a joint account at the same bank, all three amounts are fully covered — a total of $750,000 in protection at that one institution.

The FDIC insures the joint account as a single unit. If one account holder dies, the surviving holder's share of the joint account remains insured up to $250,000. The deceased's share is treated separately for insurance purposes during the settlement process.

Retirement accounts — including traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs — are insured up to $250,000 per person, per bank, separate from any other account categories you hold. A self-directed IRA held at a bank is covered, but investments within that IRA (stocks, mutual funds) are not.

What to do if your bank fails

If an FDIC-insured bank closes, the FDIC steps in to protect your deposits. In most cases, your insured deposits are transferred to another bank within one to three business days. You will receive a notice from the FDIC or the acquiring bank with information about accessing your money.

If no bank takes over the failed institution, the FDIC sends you a check for your insured balance. This process typically takes a few business days, though it can take longer if there are complications with your account or if the FDIC needs to verify your ownership.

You do not need to do anything to receive your insured funds — the FDIC handles the process automatically. However, if you have questions about your account or believe your balance was calculated incorrectly, you can contact the FDIC's Division of Depositor and Consumer Protection.

Checking whether 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 coverage. Online banks, traditional banks, and most savings institutions are FDIC-insured, but it is worth confirming before you move money.

Use the FDIC's Bank Find tool on their website to search for your bank by name or location. The tool shows whether the bank is insured, which branches are covered, and what types of accounts are protected. If your bank does not appear in the search results, it is not FDIC-insured.

Some financial institutions use names that sound like banks but are not actually banks — for example, investment firms or payment services. These are not FDIC-insured. If you are unsure, the Bank Find tool will give you a definitive answer.

Frequently Asked Questions

If I have $500,000 in one savings account, how much is insured?

Only $250,000 is insured. The remaining $250,000 is not covered by the FDIC. To protect the full amount, you would need to split the money into two accounts at two different FDIC-insured banks, or use a sweep service that automatically distributes deposits across multiple banks.

Are savings accounts at online banks insured the same way?

Yes, if the online bank is FDIC-insured. Most online banks carry FDIC insurance and offer the same $250,000 per category protection as traditional banks. Check the bank's website or use the FDIC's Bank Find tool to confirm coverage before opening an account.

Does FDIC insurance cover money I transfer out of the bank?

No. FDIC insurance only protects money held as a deposit at an FDIC-insured bank. Once you withdraw cash or transfer money to another account, investment, or location, it is no longer covered by the FDIC.

What if I have accounts at the same bank under different names — like my maiden name and married name?

The FDIC treats accounts under different names as separate accounts if they are legally distinct. However, if both names refer to the same person (you), the FDIC may combine them for insurance purposes. Contact your bank to clarify how they record your accounts and confirm your coverage.

Is money in a trust account insured differently?

Yes. Trust accounts are insured separately from individual and joint accounts, up to $250,000 per beneficiary named in the trust. A revocable living trust with three beneficiaries could have up to $750,000 insured at one bank. The structure of the trust affects how the FDIC calculates coverage, so review your trust documents with your bank to confirm protection.