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

The Federal Deposit Insurance Corporation insures $250,000 per person at each bank. That limit applies to your savings account, checking account, money market account, and certificate of deposit separately — meaning you can have $250,000 covered in savings and another $250,000 covered in a CD at the same bank, and both are protected. The coverage is per depositor, not per account, so if you have two savings accounts at the same bank under your name alone, they share the $250,000 limit between them.

The $250,000 limit has been in place since 2010. Before that, coverage was $100,000. If your bank fails, the FDIC pays out covered deposits directly to you — usually within a few business days, though it can take longer if the bank's records are complex or if you have accounts at multiple failed banks.

Money held in a joint account gets its own $250,000 limit. If you and your spouse have a joint savings account with $300,000, the FDIC covers $250,000 of it. If each of you also has an individual savings account at the same bank, each individual account gets its own $250,000 coverage, separate from the joint account limit.

Key Takeaways

  • The FDIC insures $250,000 per person per bank per account type, so $250,000 in savings and $250,000 in a CD at the same bank are both covered.
  • Joint accounts have their own $250,000 limit separate from individual accounts, even at the same bank.
  • If you have more than $250,000 at one bank, the excess is not covered and you lose it if the bank fails.
  • Retirement accounts (IRAs, 401(k)s held at a bank) have separate $250,000 coverage limits from regular deposit accounts.
  • You can check your coverage using the FDIC's online calculator or by contacting your bank directly.

How account type changes your coverage limit

The FDIC divides accounts into separate categories, and each category gets its own $250,000 limit at the same bank. A savings account, checking account, money market account, and CD are four different categories. If you have $250,000 in a savings account and $250,000 in a CD at the same bank, both are fully covered because they are different account types.

Retirement accounts held at a bank — including traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs — have their own $250,000 limit, separate from your regular deposit accounts. A 401(k) held at a bank (less common, but it happens) also gets separate coverage. If you have $250,000 in a regular savings account and $250,000 in a traditional IRA at the same bank, both are covered in full.

Trust accounts have separate coverage too. If you hold money in trust for someone else at a bank, that trust account gets $250,000 of coverage per beneficiary, up to a maximum of $250,000 total per trust. This is useful for parents who hold money in trust for children, but the math gets complicated quickly with multiple beneficiaries.

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

If you have $300,000 in a savings account at one bank, the FDIC covers $250,000. The remaining $50,000 is uninsured. If the bank fails, you lose that $50,000 entirely — the FDIC does not cover it, and you have no claim against the bank's assets. The bank's other creditors get paid first, and depositors with uninsured balances are last in line.

The solution is to spread money across multiple banks. If you have $500,000 to keep safe, you can put $250,000 at Bank A and $250,000 at Bank B, and both amounts are fully covered. The FDIC coverage is per bank, not per person across all banks, so each bank's $250,000 limit is separate.

Some people use online banks or credit unions to diversify. Online banks are still banks, and they have FDIC coverage just like brick-and-mortar banks. Credit unions are covered by the National Credit Union Administration (NCUA), which works the same way — $250,000 per member per credit union. If you have accounts at three different credit unions, each one covers $250,000 separately.

How to check your coverage at your bank

The FDIC publishes an online tool called the FDIC Coverage Calculator, available at fdic.gov. You enter your bank name, the types of accounts you have, and the balances in each one. The calculator tells you exactly how much is covered and how much is not. It takes about two minutes and requires no login or personal information beyond what you already know about your own accounts.

You can also call your bank directly and ask how much of your deposit is insured. Most banks have a customer service line that can answer this question, and some include coverage information in your account statements or online banking portal. If your bank cannot answer clearly, that is a sign to move money or call the FDIC directly at 877-275-3342.

The FDIC also publishes a list of all insured banks on its website. If your bank is not on that list, your deposits are not covered by FDIC insurance at all — they may be covered by a different insurer or not covered at all. This is rare for banks that call themselves banks, but it happens with some online-only operations or specialty lenders.

Joint accounts and coverage for multiple owners

A joint account — one held by two or more people with equal rights — gets $250,000 of coverage per owner. If you and your spouse have a joint savings account with $500,000, the FDIC covers $250,000 for you and $250,000 for your spouse, protecting the full amount. If the account has three owners, it gets $250,000 per owner, up to $750,000 total.

The key word is joint. Both owners must have equal rights to withdraw and use the money. If you put money in an account in your name but give your adult child power of attorney to manage it, that is not a joint account — it is your account, and only your $250,000 limit applies. The FDIC distinguishes between true joint ownership and other arrangements.

If you are married and have separate accounts at the same bank, each account is covered separately. Your savings account gets $250,000, and your spouse's savings account gets $250,000. A joint account between you also gets $250,000 per owner. The three accounts do not share a limit because they are different account categories (individual vs. joint).

Retirement accounts and special coverage rules

IRAs held at a bank receive $250,000 of FDIC coverage per person per bank, separate from your regular deposit accounts. This means you can have $250,000 in a traditional IRA and $250,000 in a savings account at the same bank, and both are fully covered. The coverage applies to traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.

A 401(k) held at a bank (rather than through an employer's plan administrator) also gets $250,000 of separate coverage. This is uncommon — most 401(k)s are held by plan administrators or investment firms, not banks — but if your bank offers it, the coverage is there.

Inherited IRAs have different rules. If you inherit an IRA from someone other than your spouse, the FDIC covers it under a separate category with its own $250,000 limit. If you inherit an IRA from your spouse and treat it as your own, it is covered as a regular IRA under your $250,000 limit. The distinction matters if you have multiple inherited IRAs at the same bank.

What the FDIC does not cover

The FDIC does not cover investment accounts, stocks, bonds, mutual funds, or brokerage accounts held at a bank's investment subsidiary. If your bank has a brokerage arm and you buy stocks through it, those stocks are not FDIC-insured. They may be covered by the Securities Investor Protection Corporation (SIPC) if the brokerage fails, but that is a different insurance system with different limits.

Safe deposit boxes are not covered. If you keep cash, jewelry, or documents in a safe deposit box at your bank, the FDIC does not insure the contents. The bank may have its own insurance or liability limits, but you should check your homeowner's or renter's insurance to see if those items are covered there.

Cashier's checks, money orders, and traveler's checks issued by the bank are not covered as deposits. They are considered the bank's obligation to pay, not your deposit. If the bank fails before you cash them, you may have a claim against the bank's assets, but it is not automatic FDIC coverage.

Frequently Asked Questions

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

The FDIC typically pays out covered deposits within one to two business days. In complex cases — such as when a depositor has accounts at multiple failed banks or the bank's records are unclear — it can take longer. The FDIC has paid out deposits as quickly as the next business day and as slowly as several weeks, depending on the situation.

Does FDIC coverage apply if I have money in a savings account and a money market account at the same bank?

No. Savings accounts and money market accounts are separate categories, so each gets its own $250,000 limit. If you have $250,000 in savings and $250,000 in a money market account at the same bank, both are fully covered.

What if I have $300,000 and want to keep it all safe at one bank?

You cannot keep it all safe at one bank under FDIC coverage. The excess $50,000 would be uninsured. Your options are to split the money across multiple banks (putting $250,000 at each), move the excess to a different account category (like a CD, which has its own $250,000 limit), or accept the risk that the $50,000 is uninsured.

Are online banks covered by FDIC insurance?

Yes, if they are FDIC-insured banks. Most online banks are insured. You can check by looking for the FDIC logo on the bank's website or by searching the FDIC's list of insured banks. The coverage limits and rules are identical to brick-and-mortar banks.

If I have a joint account with my spouse, is each of us covered for $250,000?

Yes. A joint account gets $250,000 per owner. With two owners, the account is covered for $500,000 total — $250,000 for each person. If the account has three owners, it is covered for $750,000.