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

The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 in your savings account at each bank where you hold deposits. That limit applies to you as an individual at that specific bank. If you have $300,000 in savings at one bank, the FDIC covers $250,000 and you absorb the loss on the remaining $50,000 if the bank fails.

The $250,000 figure has been in place since 2008. It is not adjusted for inflation and does not change based on how long you have held the account or how much interest you have earned. The coverage is automatic — you do not need to register or take any action to receive it.

The key word is "per bank." If you have $250,000 at Bank A and $250,000 at Bank B, both amounts are fully covered because they are at different institutions. Moving money between accounts at the same bank does not increase your coverage.

Key Takeaways

  • FDIC insurance covers $250,000 per person per bank, so splitting deposits across multiple banks can protect larger amounts.
  • The coverage applies separately to different account categories at the same bank — a savings account and a money market account are insured separately, for example.
  • Joint accounts receive $250,000 of coverage per co-owner, meaning a joint account with two people is covered up to $500,000.
  • Retirement accounts (IRAs, SEP-IRAs, and similar) are insured separately from regular savings accounts at the same bank.
  • If you have more than $250,000 at one bank, you can increase coverage by opening accounts in different categories or adding a co-owner to a joint account.

How account type changes your coverage amount

The FDIC does not treat all accounts the same. A regular savings account, a money market account, and a certificate of deposit (CD) at the same bank are each covered up to $250,000 separately. This means you could have $250,000 in a savings account and another $250,000 in a CD at the same bank, and both would be fully insured.

Retirement accounts receive their own $250,000 limit. An IRA at Bank A is insured separately from a regular savings account at Bank A. This applies to traditional IRAs, Roth IRAs, SEP-IRAs, and SIMPLE IRAs. If you have $250,000 in an IRA and $250,000 in a savings account at the same bank, both are covered in full.

Trust accounts and accounts held in the name of a deceased person have separate coverage rules. A revocable trust account (one you can change or cancel during your lifetime) is covered up to $250,000 per beneficiary named in the trust, not per trust. This can significantly increase coverage if the trust names multiple beneficiaries.

Joint accounts and coverage for multiple owners

A joint account is insured up to $250,000 per co-owner, not per account. 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 — the full amount is protected. If three people own a joint account together, each person receives $250,000 of coverage.

The coverage applies only if all owners have equal rights to the account. If one person owns the account and another is merely authorized to withdraw funds, the account is insured only under the primary owner's $250,000 limit. The FDIC does not recognize power of attorney or authorized user status as co-ownership for insurance purposes.

If you and your spouse each have individual accounts at the same bank, those are separate. Your individual account is covered up to $250,000, and your spouse's individual account is covered up to $250,000. A joint account you share is covered up to $250,000 per person. These do not combine or reduce each other.

What happens if your bank fails

If a bank becomes insolvent, the FDIC steps in as the insurer. You do not file a claim or contact the FDIC yourself. The FDIC either arranges for another bank to take over the failed bank's deposits, or it pays you directly from the insurance fund. In most cases, you regain access to your insured deposits within a few business days.

The FDIC will contact you by mail if your deposits exceed the insured limit. The letter explains how much is covered and how much you may lose. You have the option to move uninsured funds to another bank before the FDIC pays out, though this rarely happens because bank failures are uncommon and the FDIC usually resolves them quickly.

Uninsured deposits — the amount over $250,000 at a single bank — are not automatically lost. The FDIC may recover some of that money by selling the failed bank's assets. However, you should not count on recovering uninsured funds. The recovery process can take years, and you may receive only a partial refund.

Strategies for protecting more than $250,000

If you have more than $250,000 in savings, you can spread deposits across multiple banks to ensure full coverage. Each bank provides a separate $250,000 limit. Opening accounts at three different banks allows you to protect $750,000 in savings accounts alone, plus additional amounts in retirement accounts or joint accounts at each bank.

Using different account categories at the same bank is another option. You could hold $250,000 in a savings account, $250,000 in a CD, and $250,000 in a money market account at one bank, with each category insured separately. This works well if you prefer to keep all your accounts in one place for convenience.

Adding a co-owner to an account increases coverage. If you have $500,000 and want to keep it at one bank, you could open a joint account with your spouse and deposit $250,000 in your individual account and $500,000 in the joint account. The individual account is covered up to $250,000, and the joint account is covered up to $250,000 for you and $250,000 for your spouse.

Some people use a combination of strategies. You might keep $250,000 in a savings account at Bank A, $250,000 in a CD at Bank B, and $250,000 in a joint account with your spouse at Bank C. Each deposit is fully insured, and you have flexibility in how you manage the money.

Account types that are not FDIC insured

Not all accounts at FDIC-insured banks receive coverage. Investment accounts — stocks, bonds, mutual funds, and brokerage accounts — are not insured by the FDIC, even if held at a bank. These accounts 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 insured. The contents of a safe deposit box — jewelry, documents, cash — are not protected by FDIC insurance. If the bank fails, you may lose the contents. Some people purchase separate insurance for valuable items stored in safe deposit boxes.

Cryptocurrency held at a bank is not FDIC insured. If a bank offers cryptocurrency services or holds crypto on your behalf, that asset is not covered by deposit insurance. The bank may offer other protections, but you should ask specifically what happens to your crypto if the bank fails.

How to verify your bank is FDIC insured

Not all banks are FDIC insured. Credit unions are insured by the National Credit Union Administration (NCUA), which has similar limits but different rules. Online banks, regional banks, and national banks are usually FDIC insured, but you should confirm before opening an account.

The FDIC maintains a searchable database called BankFind at banks.fdic.gov. You can search by bank name or location to see whether a specific institution is FDIC insured and what its insurance certificate number is. If a bank does not appear in BankFind, it is not FDIC insured.

FDIC-insured banks display an FDIC logo or sign in their branch or on their website. The presence of the logo indicates the bank carries FDIC insurance, though you should still verify using BankFind if you are uncertain. Some banks that are not FDIC insured may display similar-looking logos, so the official database is the most reliable source.

Frequently Asked Questions

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

The FDIC covers $250,000. The remaining $50,000 is uninsured. To protect the full $300,000, you could move $50,000 to a savings account at a different bank, or move $50,000 into a CD or money market account at the same bank if you want to keep everything in one place.

Does FDIC insurance cover money I earn in interest?

Yes. Interest earned on your account counts toward the $250,000 limit. If you have $245,000 in a savings account and earn $10,000 in interest, your total is $255,000, and only $250,000 is insured. The interest does not receive separate coverage.

If I have a joint account with my spouse and we divorce, what happens to the insurance?

The coverage remains $250,000 per person until you change the account ownership. After divorce, if you want to keep the account as a joint account, you should contact the bank to update the ownership structure. If you convert it to an individual account, only $250,000 of the balance remains insured.

Are savings bonds held at a bank FDIC insured?

No. Savings bonds issued by the U.S. Treasury are backed by the federal government but are not FDIC insured. They are considered securities, not deposits. If you buy bonds through a bank, the bank itself is FDIC insured, but the bonds are not.

What if I have money in multiple accounts at the same bank under different names?

Each account is insured separately up to $250,000 if the accounts are in different legal names or categories. An account in your name alone and a joint account with your spouse are separate for insurance purposes. An account in your name and an account in your child's name are also separate, as long as you do not have ownership rights to your child's account.