The standard FDIC coverage limit is $250,000 per depositor, per bank, per account ownership category

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks up to $250,000. That limit applies to each depositor at each bank — so if you have $250,000 at Bank A and $250,000 at Bank B, both are fully covered. The $250,000 figure has been in place since 2010 and applies to most deposit types.

The coverage is automatic. You do not need to register, apply, or do anything special. If your bank fails, the FDIC pays you directly, usually within a few business days. The insurance covers checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). It does not cover stocks, bonds, mutual funds, or safety deposit box contents.

If you have more than $250,000 at a single bank, the amount over that limit is not insured. Money in that excess sits at risk if the bank becomes insolvent. Many people with larger balances spread their deposits across multiple banks specifically to stay within the $250,000 limit at each one.

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account category — meaning you can have $250,000 in a checking account and another $250,000 in a savings account at the same bank and both are covered.
  • Coverage is automatic at all FDIC member banks and requires no action on your part.
  • Joint accounts, retirement accounts, and trust accounts have separate $250,000 limits, so the same person can have multiple covered balances at one bank.
  • Amounts over $250,000 at a single bank are not insured, so people with large balances often use multiple banks to stay protected.
  • The FDIC does not insure investments like stocks or mutual funds, only deposit products.

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

The FDIC recognizes different ownership categories, and each one gets its own $250,000 limit at the same bank. A single person can therefore have $250,000 in a personal checking account, $250,000 in a personal savings account, $250,000 in a joint account with a spouse, and $250,000 in a retirement account — all at the same bank, and all fully insured.

The main categories are: individual accounts (held in one person's name), joint accounts (held by two or more people with equal rights), retirement accounts (IRAs, Roth IRAs, SEP-IRAs), trust accounts (formal trusts with named beneficiaries), and certain government and employee benefit plan accounts. Each category has its own $250,000 ceiling.

A joint account is insured as a unit. If you and your spouse have a joint savings account with $300,000, the FDIC covers $250,000 of it. The coverage does not split between you — it is $250,000 total for that account, not $250,000 per person. If you each want full coverage, you would need separate individual accounts at the same bank.

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

Money above $250,000 at a single bank is uninsured. If the bank fails, you lose that excess. The FDIC will not cover it, and you become an unsecured creditor in the bank's bankruptcy — meaning you stand in line behind secured creditors and may recover little or nothing.

The simplest protection is to keep no more than $250,000 at any one bank. If you have $500,000 to deposit, put $250,000 at Bank A and $250,000 at Bank B. Both amounts are then fully insured. This approach works for any size balance — a person with $1 million in deposits could use four different banks.

Some people use online banks or credit unions to spread their deposits because they offer competitive rates and make it easy to open accounts remotely. The FDIC limit applies the same way: $250,000 per person, per institution. Credit unions use a parallel system called the National Credit Union Administration (NCUA), which also insures up to $250,000 per member, per credit union.

Retirement accounts and trust accounts have their own rules

An IRA or Roth IRA held at a bank is insured separately from your personal accounts at that same bank. You can have $250,000 in a personal checking account and another $250,000 in an IRA at the same bank, and both are covered. The two accounts are treated as different ownership categories for insurance purposes.

A formal revocable trust account is also insured separately. If you set up a trust with named beneficiaries and hold a bank account in the trust's name, the FDIC covers up to $250,000 for the trust. The coverage extends to each unique beneficiary named in the trust — so a trust with three named beneficiaries can have up to $750,000 insured at one bank, with $250,000 allocated to each beneficiary's interest.

Informal arrangements do not receive this protection. Money you hold for someone else in your own name (sometimes called a "Totten trust" or "payable on death" account) is insured only up to $250,000 total, even if you name multiple beneficiaries. The FDIC treats it as your account, not as a separate trust.

How to check if your bank is FDIC insured

Most banks are FDIC members, but not all. Before you deposit money, confirm that your bank carries FDIC insurance. You can search the FDIC's Bank Find tool on the FDIC website — enter the bank's name and location, and it will tell you whether it is insured and show you the coverage limits.

Your bank statement or account agreement should also state that deposits are FDIC insured. If you cannot find that language or if the bank is not in the FDIC database, contact the bank directly and ask. Some very small banks, some credit unions (which use NCUA instead), and some foreign banks do not carry FDIC insurance.

If a bank is not FDIC insured, your deposits have no federal protection. That does not mean the bank is unsafe, but it does mean you bear the full risk if the bank fails. Most people prefer to keep their money at insured institutions for that reason.

What the FDIC actually covers and what it does not

The FDIC insures deposit products: checking accounts, savings accounts, money market accounts, and CDs. It covers the principal and any accrued interest up to the $250,000 limit. If you have a CD that matures after a bank fails, the FDIC still covers it as long as the total is within the limit.

The FDIC does not insure investment products held at the bank. Stocks, bonds, mutual funds, and brokerage accounts are not covered, even if you buy them through your bank. If your bank has a brokerage arm and you buy a mutual fund there, that fund is not FDIC insured — it may be protected by Securities Investor Protection Corporation (SIPC) insurance instead, but that is a different system with different limits.

Safe deposit boxes are also not covered. If you store jewelry, documents, or other valuables in a safe deposit box at your bank and the bank fails, the FDIC does not reimburse you for the contents. You would need to insure those items separately through homeowners or renters insurance.

What to do if your bank fails

If your bank becomes insolvent, the FDIC takes over and pays insured depositors. You do not need to file a claim or contact the FDIC — the agency identifies all insured accounts and sends payments automatically, usually within a few business days. You will receive a check or a transfer to another account for the insured amount.

If you had more than $250,000 at the failed bank, you will receive $250,000 (or whatever your limit was based on account category). The excess is uninsured and becomes part of the bank's bankruptcy estate. You can file a claim as an unsecured creditor, but recovery is uncertain and often takes years.

Bank failures are rare in the United States. The FDIC has been in operation since 1933, and the insurance system has protected depositors through multiple financial crises. The last significant wave of bank failures occurred in 2008 and 2009, and the FDIC paid all insured depositors in full.

Frequently Asked Questions

If I have $300,000 in a savings account at one bank, how much is insured?

$250,000 is insured. The remaining $50,000 is uninsured and at risk if the bank fails. To protect the full $300,000, you would move $250,000 to a savings account at a different bank, or use a different account category (like a CD or retirement account) at the same bank if you have not already maxed out that category.

Does FDIC insurance cover money I wire to another person?

No. Once you wire money out of your account, it belongs to the recipient and is insured under their account at their bank, not yours. FDIC insurance protects deposits you hold at the bank, not money in transit or held elsewhere.

Are online banks FDIC insured the same way as brick-and-mortar banks?

Yes. Online banks that are FDIC members have the same $250,000 coverage per depositor, per account category. The FDIC does not distinguish between online and traditional banks — only whether the bank is a member of the system. Check the FDIC Bank Find tool to confirm your online bank is insured.

What if I have accounts at two different branches of the same bank?

Branches do not matter. All accounts you hold at the same bank are combined for FDIC purposes. If you have $150,000 at the downtown branch and $150,000 at the uptown branch of the same bank, the FDIC treats it as $300,000 at one institution — so only $250,000 is insured.

Can I increase my FDIC coverage by adding a beneficiary to my account?

Not for a regular account. A payable-on-death (POD) account is still insured as a single $250,000 limit, regardless of how many beneficiaries you name. A formal revocable trust account does increase coverage — up to $250,000 per named beneficiary — but that requires setting up an actual trust, not just naming someone on the account.