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

The Federal Deposit Insurance Corporation (FDIC) protects deposits in savings accounts up to $250,000 per person at each bank where you have an account. This means if your bank fails, the FDIC will reimburse you for the full amount up to that limit. If you have $250,000 or less in a savings account at one bank, you are fully covered. If you have more than $250,000 at a single bank, only the first $250,000 is protected.

The $250,000 limit applies to each account type separately. A savings account, a checking account, and a money market account at the same bank are each covered up to $250,000. A joint savings account (held with another person) is also covered separately up to $250,000. This means you can have more than $250,000 total at one bank and still be fully covered, as long as you spread it across different account types or ownership structures.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor, per bank, per account type — so $250,000 in a savings account and $250,000 in a checking account at the same bank are both fully covered.
  • Joint accounts are insured separately from individual accounts, meaning you and a co-owner can each have $250,000 protected in a joint savings account.
  • The $250,000 limit resets at each different bank, so you can have $250,000 at Bank A and $250,000 at Bank B and be fully covered at both.
  • Money in retirement accounts (IRAs, 401(k)s) held at FDIC-insured banks is covered separately up to $250,000 per account type.
  • If you exceed the $250,000 limit at one bank in one account type, only the amount up to $250,000 is protected; the rest is at risk if the bank fails.

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

The FDIC tracks coverage based on who owns the account. An account in your name alone is covered up to $250,000. If you have a joint account with another person, that joint account is covered up to $250,000 as a separate pool — meaning both owners together are protected for $250,000 in that joint account. If you also have an individual account at the same bank, that individual account gets its own $250,000 of coverage.

If you are a beneficiary on a payable-on-death (POD) account or a trust account, the FDIC covers that separately as well, up to $250,000 per beneficiary or per trust. This structure lets you protect more money at a single bank if you use different ownership types. For example, you could have $250,000 in an individual savings account, $250,000 in a joint savings account with your spouse, and $250,000 in a POD account naming your child — all at the same bank, all fully covered.

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

If your total deposits at a single bank exceed $250,000 in the same account type and ownership structure, the amount over $250,000 is not covered by FDIC insurance. For example, if you have $300,000 in a savings account in your name alone at Bank A, the FDIC will cover $250,000 and you lose $50,000 if the bank fails. The uninsured portion is a real risk — it means you would not get that money back.

The simplest way to protect deposits over $250,000 is to split them across different banks. If you have $500,000 to keep safe, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. You can also use different account types or ownership structures at the same bank to increase coverage, but spreading across banks is the most straightforward approach.

FDIC coverage does not apply to all products

FDIC insurance covers deposits held in savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs) at banks that are FDIC members. However, it does not cover stocks, bonds, mutual funds, or brokerage accounts held at a bank. It also does not cover safe deposit boxes or their contents, even if the bank holds them.

If you buy an investment product through a bank — such as a mutual fund or a stock — that product is not FDIC insured, even though the bank sold it to you. The bank itself must be an FDIC member for deposits to be covered. You can check whether a bank is FDIC insured by searching the FDIC's Bank Find tool on the FDIC website, or by asking the bank directly.

How to check if your bank is FDIC insured

Not all banks are FDIC members. Most traditional banks and credit unions are, but some online banks and smaller institutions are not. You can verify your bank's FDIC status by visiting the FDIC's Bank Find tool at fdic.gov. Enter your bank's name and state, and the tool will tell you whether it is insured and what the coverage limits are for your specific accounts.

If your bank is not FDIC insured, your deposits are not protected by the FDIC if the bank fails. Some credit unions are instead insured by the National Credit Union Administration (NCUA), which offers the same $250,000 per depositor, per credit union, per account type coverage. If you are unsure whether your financial institution is covered, check with the bank or credit union directly, or use the Bank Find tool.

What to do if you have deposits over $250,000

If you have more than $250,000 in deposits and want full FDIC coverage, the most direct step is to open accounts at different FDIC-insured banks. Each bank's $250,000 limit is separate, so spreading your money across multiple banks protects all of it. You can also use different account types (savings, checking, money market) or ownership structures (individual, joint, POD, trust) at the same bank to increase coverage without moving to another bank.

Before you move money, verify that each bank you choose is FDIC insured. If you have a joint account, make sure both owners understand the coverage structure — the $250,000 limit applies to the joint account as a whole, not to each owner individually. If you have questions about how your specific accounts would be covered, contact your bank's customer service or the FDIC directly.

Frequently Asked Questions

Does FDIC insurance cover my savings account if the bank fails?

Yes, if your bank is FDIC insured and your savings account balance is $250,000 or less, the FDIC will cover the full amount if the bank fails. If you have more than $250,000 in a savings account in your name alone at that bank, only $250,000 is covered.

Can I have more than $250,000 covered at one bank?

Yes. The $250,000 limit applies per account type and per ownership structure. You can have $250,000 in an individual savings account, $250,000 in a joint savings account, and $250,000 in a money market account at the same bank, and all three amounts are fully covered.

Are online banks FDIC insured?

Most online banks are FDIC insured, but not all. Check the bank's website or use the FDIC's Bank Find tool to confirm. If a bank is FDIC insured, your deposits are covered the same way as at a traditional bank — up to $250,000 per account type.

What if I have a joint account with my spouse?

A joint account is covered separately from individual accounts. You and your spouse together are protected for up to $250,000 in that joint account. If you also each have individual accounts at the same bank, those are covered separately up to $250,000 each.

Does FDIC insurance cover money market accounts and CDs?

Yes. Money market accounts and certificates of deposit (CDs) at FDIC-insured banks are covered up to $250,000 per depositor, per bank, per account type, just like savings and checking accounts.