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

FDIC insurance covers up to $250,000 in your savings account at a single bank. That limit applies to each depositor separately — so if you and your spouse each have accounts at the same bank, you each get $250,000 of protection. If you have $300,000 in savings at one bank, the FDIC covers $250,000 and you lose the remaining $50,000 if the bank fails.

The $250,000 figure has been in place since 2008 and applies across all FDIC-insured banks. It covers the account balance as it stands on the day the bank closes, including any interest that has accrued. Money market accounts, checking accounts, and savings accounts are all covered under the same $250,000 limit when held at the same bank in your name alone.

The limit resets if you move your money to a different bank. If you have $300,000 and split it between two banks — $150,000 at Bank A and $150,000 at Bank B — both amounts are fully covered because the $250,000 limit applies per bank, not per person overall.

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank per account category, meaning a couple with joint savings can be covered for up to $500,000 at a single bank.
  • Money in a savings account, checking account, and money market account at the same bank are all covered under one $250,000 limit if they are in your name alone.
  • Retirement accounts like IRAs have their own separate $250,000 limit, so an IRA and a savings account at the same bank can both be fully covered if each is under $250,000.
  • If you have more than $250,000 to protect at one bank, you can open accounts in different ownership categories — such as a joint account and an individual account — to increase your coverage.
  • The FDIC does not cover stocks, bonds, mutual funds, or cryptocurrency, even if they are held at an FDIC-insured bank.

How joint accounts and account ownership categories change the limit

If you have a joint savings account with your spouse, the FDIC covers up to $250,000 for the joint account itself. This is separate from any individual accounts either of you holds at the same bank. So you could have a joint savings account with $250,000 and an individual savings account with $250,000 at the same bank, and both would be fully covered — for a total of $500,000 in protection between you.

The FDIC recognizes several account ownership categories, and each one gets its own $250,000 limit at the same bank. These include individual accounts, joint accounts, accounts held in trust for a beneficiary, and retirement accounts like IRAs. If you have $250,000 in an individual savings account and $250,000 in an IRA at the same bank, both are covered in full because they fall into different categories.

Accounts held in trust for a minor or other beneficiary also receive separate coverage. If you hold $250,000 in a savings account as a custodian for your child, that amount is covered separately from your own individual account at the same bank. The coverage applies to the beneficiary's interest, not the account owner's.

What happens when you exceed the $250,000 limit

If your savings account balance exceeds $250,000 at an FDIC-insured bank and that bank fails, you will lose the amount over $250,000. The FDIC will pay out the insured $250,000 within a few business days, but the excess is not recovered. This is why people with large sums of money often split deposits across multiple banks.

The FDIC does not automatically move your money or warn you when you approach the limit. It is your responsibility to monitor your balance and move funds if you want to stay within coverage. Some banks offer tools to help track this, but the FDIC itself does not send alerts.

If you receive an inheritance, a large gift, or a settlement that pushes your account over $250,000, you have time to move the excess to another bank. Bank failures are rare and usually take weeks to resolve, so you are not at immediate risk. However, waiting until a bank is in trouble to move money is risky — it is better to spread deposits across banks before a problem arises.

Retirement accounts and special account types have their own coverage limits

Individual Retirement Accounts (IRAs) — both traditional and Roth — are covered up to $250,000 per person per bank, separate from any other accounts you hold there. This means you can have $250,000 in an IRA and $250,000 in a regular savings account at the same bank, and both amounts are fully insured.

Self-directed SEP IRAs and Solo 401(k) accounts also receive FDIC coverage, though the rules are more complex because these accounts can hold larger balances. The FDIC covers up to $250,000 per beneficiary in these accounts, which can mean higher total coverage if multiple beneficiaries are named.

Health Savings Accounts (HSAs) held at banks receive the same $250,000 coverage as regular savings accounts. Coverdell Education Savings Accounts also may have access to for FDIC protection under the same limit. If you have both an HSA and a regular savings account at the same bank, they share the $250,000 limit because they are both in the individual account category.

What the FDIC does not cover

The FDIC only insures deposits — money you have placed in the bank. It does not cover stocks, bonds, mutual funds, or exchange-traded funds (ETFs), even if you buy them through an FDIC-insured bank. If you hold $250,000 in a savings account and $100,000 in mutual funds at the same bank, only the savings account is covered by FDIC insurance.

Cryptocurrency held at a bank is not covered by FDIC insurance. Safe deposit boxes and their contents are also not insured by the FDIC, though some banks offer separate coverage for items stored in boxes. Precious metals, jewelry, and documents kept in a safe deposit box are the bank's responsibility only if the bank itself is negligent — the FDIC does not back them.

Money transferred outside the United States is not covered. If you wire funds to an account at a foreign bank, FDIC protection ends when the money leaves the U.S. banking system. Traveler's checks and cashier's checks are covered only if they are deposited into an insured account before the bank fails.

How to check if your bank is FDIC-insured

You can search for your bank on the FDIC's official website using their Bank Find tool. Enter your bank's name and location, and the tool will tell you whether it is FDIC-insured and show you the coverage limits for each account type you hold there. This is the most reliable way to confirm your protection.

Most traditional banks are FDIC-insured, but some online banks, credit unions, and alternative financial institutions are not. Credit unions are typically insured by the National Credit Union Administration (NCUA) instead, which offers the same $250,000 limit but is a separate program. If you bank with a credit union, check whether it is NCUA-insured rather than FDIC-insured.

Your bank statement or account agreement should also indicate FDIC insurance status. Look for language stating "FDIC-insured" or a reference to Federal Deposit Insurance. If you cannot find this information, contact your bank directly or use the FDIC Bank Find tool to be certain.

Strategies for protecting balances over $250,000

The simplest approach is to split your money across multiple FDIC-insured banks. If you have $500,000 in savings, you could place $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. This requires opening accounts at different institutions, but each account remains easily accessible.

You can also use different account ownership categories at the same bank to increase coverage. A couple could open a joint savings account ($250,000 covered), an individual account for one spouse ($250,000 covered), and an individual account for the other spouse ($250,000 covered) — for a total of $750,000 in coverage at one bank. Adding an IRA for each spouse would increase coverage further.

Some people use a combination of both strategies: multiple banks plus multiple account types. This approach is most useful if you have a very large balance or want to keep all your money at one institution for convenience. The trade-off is that managing multiple accounts requires more record-keeping.

Frequently Asked Questions

Does FDIC insurance cover my savings account if the bank makes bad investments?

Yes. FDIC insurance covers your deposit regardless of why the bank fails. Whether the bank made poor loans, suffered fraud, or lost money in the market, your insured balance is protected up to $250,000. The FDIC steps in and pays depositors from a fund built from bank premiums, not from the failed bank's remaining assets.

What if I have $250,000 in a savings account and $250,000 in a money market account at the same bank?

Both accounts share the same $250,000 limit because they are both in the individual account category. Only $250,000 total would be covered across both accounts. To protect both amounts, you would need to move one account to a different bank or change one account to a different ownership category, such as a joint account.

Are savings accounts at online banks covered the same way as brick-and-mortar banks?

Yes, if the online bank is FDIC-insured. The $250,000 limit and coverage rules are identical. Many online banks are FDIC-insured and offer the same protection as traditional banks. Always verify using the FDIC Bank Find tool before opening an account.

If I have a beneficiary named on my savings account, does that increase my coverage?

Only if the account is set up as a "payable-on-death" (POD) account or held in trust. A simple beneficiary designation on a regular savings account does not increase FDIC coverage. A POD account gives the named beneficiary their own $250,000 of coverage, separate from your individual account at the same bank.

Do I need to do anything to activate FDIC insurance on my savings account?

No. FDIC insurance is automatic at all insured banks. You do not need to pay for it, sign up for it, or take any action. Your coverage is in place as soon as you open the account, as long as the bank is FDIC-insured.