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

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 for each depositor at each bank. This limit applies to each account ownership category separately, which means you can have multiple accounts at the same bank and each one gets its own $250,000 protection — but only if they are in different ownership categories.

The $250,000 limit has been in place since 2010. Before that, the standard was $100,000. If your bank fails, the FDIC pays out covered deposits directly to you, usually within a few business days. Money beyond $250,000 in a single account ownership category at one bank is not covered and may be lost if the bank closes.

The coverage applies to checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs). It does not cover stocks, bonds, mutual funds, or safety deposit boxes — those are not bank deposits and fall outside FDIC protection.

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account ownership type, so you can protect more than $250,000 at one bank by using different account categories.
  • A joint account is a separate ownership category from a single account, so you can have $250,000 in your individual account and another $250,000 in a joint account at the same bank.
  • Money in retirement accounts like IRAs, SEP-IRAs, and self-directed 401(k)s gets its own $250,000 coverage separate from your regular deposit accounts.
  • If you have more than $250,000 at one bank, opening accounts at different FDIC-insured banks is the only way to protect the full amount.
  • The FDIC does not cover investment products, safety deposit box contents, or funds held in trust by a bank for someone else.

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

The FDIC recognizes several account ownership categories, and each one has its own $250,000 limit at each bank. This means you can have $250,000 in an individual account, $250,000 in a joint account, $250,000 in a payable-on-death (POD) account, and $250,000 in an IRA — all at the same bank — and all four amounts would be fully covered.

The main categories are: individual accounts (in your name alone), joint accounts (shared ownership with another person), payable-on-death accounts (where you name a beneficiary to receive the money if you die), retirement accounts (IRAs, SEP-IRAs, SIMPLE IRAs, self-directed 401(k)s), and trust accounts (formal trusts with named beneficiaries). Each category gets its own $250,000 limit.

A payable-on-death account is different from a joint account. In a POD account, you keep full control during your lifetime, and the money goes to your named beneficiary only after you die. A joint account gives both owners access to the full balance at any time. The FDIC treats them as separate ownership categories, so you can have both at the same bank without the balances counting against each other.

Joint accounts and how they are covered

In a joint account, the FDIC insures up to $250,000 for each owner, not $250,000 total for the account. If you and your spouse have a joint account with $400,000, the FDIC covers $250,000 for you and $250,000 for your spouse — the full $400,000 is protected. If the account has three owners, each owner gets $250,000 of coverage.

This protection applies only if each owner has an equal or unequal ownership stake that is documented. The FDIC does not require equal contributions or equal withdrawal rights; it only requires that the account be registered in multiple names. If you add someone's name to your account just to help with banking but they have no actual ownership stake, the FDIC may not recognize them as a co-owner, and the coverage could be reduced.

If you are married and have a joint account, each spouse's $250,000 is separate from their individual accounts at the same bank. So a married couple could have $250,000 in a joint account, $250,000 in the husband's individual account, and $250,000 in the wife's individual account — all at the same bank, all fully covered.

Retirement accounts and self-directed investments

Traditional IRAs, Roth IRAs, SEP-IRAs, and SIMPLE IRAs each get their own $250,000 coverage limit at each bank. A self-directed 401(k) held at a bank also gets $250,000 coverage. These limits are separate from your individual and joint account coverage, so you can have $250,000 in an IRA and $250,000 in a regular savings account at the same bank.

The key word is "at a bank." If your IRA is held at a brokerage firm or investment company, it is not covered by FDIC insurance at all. The FDIC only covers deposits held at banks. If your IRA contains stocks, bonds, or mutual funds — even if those are held at a bank — they are not covered. Only the cash portion of an IRA held at a bank receives FDIC protection.

If you have multiple IRAs of the same type (for example, two separate Roth IRAs) at the same bank, the FDIC combines them and covers the total up to $250,000. You cannot get $250,000 coverage for each Roth IRA; the limit applies to all Roth IRAs you own at that bank combined.

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

Money above $250,000 in a single account ownership category at one bank is uninsured. If the bank fails, you lose that money. There is no partial coverage — if you have $300,000 in an individual savings account, the FDIC covers $250,000 and you lose $50,000.

The only way to protect more than $250,000 is to spread it across multiple banks. Each FDIC-insured bank has its own $250,000 limit per ownership category. If you have $500,000 in individual savings accounts, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. The banks do not have to be different brands — they just have to be separate institutions with different FDIC certificates.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to spread deposits across multiple banks automatically. You deposit money into one account, and IntraFi splits it into $250,000 chunks at different FDIC-insured banks. This is useful if you have a large sum and do not want to manage multiple bank accounts yourself, though it typically costs a small fee.

What the FDIC does not cover

Investment products are never covered by FDIC insurance, even if you buy them through a bank. Stocks, bonds, mutual funds, exchange-traded funds (ETFs), and brokerage accounts are not bank deposits. If you buy these through your bank's investment division, they are held in a brokerage account, not a deposit account, and the FDIC does not protect them. A brokerage account may be covered by SIPC (Securities Investor Protection Corporation) instead, but that is a different insurance system with different limits.

Safety deposit boxes are not covered. The contents of a safety deposit box — jewelry, documents, cash, coins — are not insured by the FDIC. If the bank is robbed or the box is damaged, you have no recourse. Some homeowners insurance policies cover valuables in safety deposit boxes, but the bank's insurance does not.

Funds held in trust by a bank for someone else are not covered under your account. If you give a bank money to hold in trust for a minor or another person, that money is not your deposit and does not count toward your $250,000 limit. It may be covered under a separate trust account category, but the rules are complex and depend on how the trust is structured.

How to check if your bank is FDIC-insured

Not all banks are FDIC-insured. Credit unions are insured by the NCUA (National Credit Union Administration), not the FDIC. Online banks, traditional banks, and savings banks can all be FDIC-insured, but you need to verify. The FDIC maintains a searchable database called BankFind at banks.fdic.gov. You can search by bank name or location to see if a specific institution is covered.

When you open an account, the bank is required to disclose whether it is FDIC-insured. Look for the FDIC logo on the bank's website or ask a teller. If a bank is not FDIC-insured, your deposits have no federal insurance protection if the bank fails.

If you are unsure about coverage for a specific account setup — for example, if you have a complex trust or multiple account types — you can contact the FDIC directly at 1-877-ASK-FDIC (1-877-275-3342) or use the FDIC's Coverage Calculator at fdic.gov/resources/deposit-insurance/coverage-calculator. The calculator lets you enter your account details and shows you exactly how much is covered.

Frequently Asked Questions

If I have $300,000 in one account, how much does the FDIC cover?

The FDIC covers $250,000 and you lose $50,000 if the bank fails. There is no partial coverage for amounts over the limit. To protect the full $300,000, you would need to split it between two different FDIC-insured banks.

Does FDIC coverage follow me if I move my money to a different bank?

No. FDIC coverage is tied to the bank where the money is held, not to you personally. If you move $200,000 from Bank A to Bank B, you now have $200,000 of coverage at Bank B instead of Bank A. The coverage does not transfer; it applies at each bank separately.

Are money market accounts covered by the FDIC?

Yes, if it is a money market deposit account held at a bank. Money market deposit accounts are FDIC-insured up to $250,000 per ownership category. Money market mutual funds sold through a brokerage are not FDIC-insured.

If my bank fails, how long does it take to get my money back?

The FDIC typically pays out covered deposits within a few business days. In most cases, you have access to your insured funds within three to five days of the bank's closure. The FDIC has never missed a payout deadline.

Can I get more coverage by opening accounts under different names?

No. FDIC coverage is based on who actually owns the money, not what name the account is registered under. If you open an account in a fake name or someone else's name but you control the money, the FDIC will not recognize it as a separate ownership category and will combine it with your other accounts for coverage purposes.