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

The Federal Deposit Insurance Corporation (FDIC) insures your checking account balance up to $250,000. That limit applies to each bank separately — if you have accounts at two different banks, each one gets its own $250,000 of coverage. The coverage also depends on how the account is titled: a checking account in your name alone is insured separately from a joint checking account at the same bank, and both are separate from a savings account you hold there.

If your balance exceeds $250,000 at a single bank in a single account category, the amount over $250,000 is not covered. If the bank fails, you lose access to that excess. Most people's checking accounts stay well below the limit, but business owners, retirees with large balances, or anyone holding money temporarily should know where their coverage ends.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor, per bank, per account category — meaning a $300,000 balance at one bank leaves $50,000 uninsured.
  • A joint checking account is insured separately from an individual checking account at the same bank, so a married couple can each have $250,000 covered in a joint account plus another $250,000 each in individual accounts.
  • Coverage applies only to deposits held at FDIC-insured banks; credit unions use a different system called NCUA insurance with the same $250,000 limit.
  • If you need to protect more than $250,000 at one bank, you can open accounts in different categories (individual, joint, retirement) or split money across multiple FDIC-insured banks.

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

The FDIC recognizes several account categories, and each one gets its own $250,000 of coverage at the same bank. An individual checking account (in your name alone) is one category. A joint checking account (shared with another person) is a separate category. A retirement account like a traditional IRA or Roth IRA is a third category. A payable-on-death (POD) account — where you name a beneficiary to receive the balance if you die — is a fourth.

This means a married couple can hold $250,000 in a joint checking account, plus $250,000 each in individual checking accounts at the same bank, plus $250,000 each in individual IRAs, for a total of $1 million in coverage across all four categories. The categories do not mix: money in a joint account does not count toward your individual account limit, and money in an IRA does not count toward either.

Trust accounts, accounts held by a business, and accounts held in the name of a deceased person's estate each have their own coverage rules and limits. If you hold accounts in multiple categories, ask your bank which category each account falls into so you know exactly how much is covered.

What happens if your balance exceeds $250,000 at one bank

If you have $300,000 in a checking account at a single FDIC-insured bank and that bank fails, the FDIC will pay you $250,000. The remaining $50,000 is lost unless the bank's assets are sold and generate enough money to pay uninsured depositors — which rarely happens in full. You do not get to choose which $250,000 is covered; the FDIC simply pays the limit.

Bank failures are uncommon in the United States, but they do occur. The FDIC maintains a fund paid for by bank premiums (not by taxpayers) to cover insured deposits when a bank closes. Since 2008, the FDIC has resolved dozens of bank failures, and insured depositors have been made whole. Uninsured depositors typically recover only a fraction of their excess balance, if anything.

Splitting money across multiple banks to increase coverage

If you have more than $250,000 to deposit and want full FDIC coverage, you can open accounts at different FDIC-insured banks. Each bank is a separate entity for insurance purposes. A $300,000 balance split as $250,000 at Bank A and $50,000 at Bank B means both amounts are fully covered.

You can use an online tool called the FDIC's Electronic Deposit Insurance Estimator to model your coverage across multiple banks and account categories before you deposit money. The tool walks you through your account setup and shows you exactly how much is covered. This is especially useful if you are moving a large sum or consolidating accounts.

Some people use a service called a deposit sweep or money market fund to automatically move balances above $250,000 into accounts at partner banks, but these services charge fees and are mainly used by people with very large balances. For most situations, simply opening accounts at a second or third bank is simpler and free.

Coverage for joint accounts and how it works for couples

A joint checking account is insured as a single unit up to $250,000, not $250,000 per person. If you and your spouse hold a joint account with $300,000, the FDIC covers $250,000 of that balance. Each account holder is considered a co-owner of the full balance, so the coverage does not split between you.

However, a joint account is insured separately from individual accounts. If you have a $200,000 joint checking account and a $150,000 individual checking account at the same bank, both are fully covered because they fall into different categories. The joint account uses $200,000 of its $250,000 limit, and the individual account uses $150,000 of its own $250,000 limit.

If you are married and want to maximize coverage, you can hold money in three ways at the same bank: a joint account ($250,000 covered), an individual account in your name ($250,000 covered), and an individual account in your spouse's name ($250,000 covered). That structure protects up to $750,000 total at one bank.

Checking coverage at credit unions instead of banks

Credit unions are not insured by the FDIC. Instead, they use the National Credit Union Administration (NCUA), a separate federal agency. NCUA coverage works the same way as FDIC coverage — up to $250,000 per depositor, per credit union, per account category — but it is a different insurance system backed by a different fund.

If you hold accounts at both a bank and a credit union, the coverage does not overlap. A $250,000 balance at a bank and a $250,000 balance at a credit union are both fully covered because they are insured by different agencies. However, if you have multiple accounts at the same credit union, the $250,000 limit applies across all of them in the same way it does at banks.

Before you deposit money at a credit union, confirm that it is NCUA-insured. Most credit unions are, but a few are not. The NCUA website has a search tool to verify whether a specific credit union carries insurance.

How to verify your bank is FDIC-insured

Not every bank is FDIC-insured, though most are. Online banks, community banks, and large national banks are typically insured, but some niche financial institutions are not. Before you deposit a large sum, check the FDIC's Bank Find tool on its website. Enter your bank's name and location, and the tool will tell you whether it is insured and show you the coverage limits for each account category you hold there.

Your bank statement or online banking portal may also display an FDIC insurance notice, usually at the bottom of the page or in the account details section. If you do not see one and cannot find your bank in the FDIC's database, contact the bank directly and ask whether it carries FDIC insurance. If it does not, your deposits are not protected by federal insurance.

Frequently Asked Questions

If I have $500,000 in my checking account at one bank, how much is covered?

The FDIC covers $250,000. The remaining $250,000 is uninsured. If the bank fails, you lose that $250,000 unless the bank's assets generate enough money to pay uninsured depositors, which is rare. To protect the full $500,000, split it between two FDIC-insured banks.

Does FDIC coverage apply to money market accounts or savings accounts?

Yes. Money market accounts and savings accounts are insured the same way as checking accounts — up to $250,000 per depositor, per bank, per account category. A savings account is a separate category from a checking account, so you can have $250,000 covered in each at the same bank.

If my spouse dies, is the money in our joint checking account still covered?

Yes, but the coverage changes. After death, the account is treated as an estate account, which has its own $250,000 limit separate from your individual account limit. The FDIC will cover up to $250,000 of the joint account balance during the settlement period, which is typically six months to a year.

Are CDs (certificates of deposit) covered by FDIC insurance?

Yes. CDs are insured up to $250,000 per depositor, per bank, per account category. Each CD you hold at the same bank counts toward the same $250,000 limit as your checking and savings accounts in the individual category, so a $150,000 CD plus a $150,000 checking account means only $250,000 is covered total.

What if my bank is not FDIC-insured?

Your deposits are not protected by federal insurance. If the bank fails, you have no may provide of recovering your money. Use the FDIC's Bank Find tool to verify your bank before depositing large amounts. If your bank is not insured, consider moving your money to an FDIC-insured bank.