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

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks. The standard coverage limit is $250,000 per depositor per bank per account category. That means if you have $250,000 or less in a single checking account at one bank, all of it is covered. If you have $300,000 in that same account, the FDIC covers $250,000 and you lose $50,000 if the bank fails.

The $250,000 limit applies to each account ownership category separately. This is the part most people miss. If you have $250,000 in an individual account and another $250,000 in a joint account at the same bank, both are fully covered—because they are different categories. But $250,000 in one individual account and $250,000 in another individual account at the same bank means only $250,000 total is covered across both accounts.

FDIC coverage does not apply to investments, stocks, bonds, mutual funds, or money market funds held at a bank's brokerage arm. It covers only deposit products: checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs).

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank per account category, so $250,000 in a checking account and $250,000 in a savings account at the same bank are both fully covered.
  • Joint accounts, retirement accounts (IRAs), and trust accounts are separate categories, each with their own $250,000 limit at the same bank.
  • Money in investment products like stocks, bonds, and mutual funds is not FDIC-insured, even if held at a bank.
  • If you have more than $250,000 to protect at one bank, you can open accounts in different categories or split deposits across multiple FDIC-member banks.
  • The FDIC automatically covers all deposit accounts at member banks—you do not need to register or take any action.

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

The FDIC recognizes several account ownership categories, and each one has its own $250,000 coverage limit at the same bank. An individual account (in your name alone) is one category. A joint account (owned by two or more people) is another. Each owner's share of a joint account is insured up to $250,000, so a joint account with two owners can have up to $500,000 in coverage at one bank.

A retirement account (IRA, Roth IRA, SEP-IRA, or similar) is a separate category with its own $250,000 limit. A trust account is another category. If you are the trustee of a trust account, coverage extends up to $250,000 per beneficiary named in the trust, up to a maximum of $250,000 total per trust. A payable-on-death (POD) account is also separate—each named beneficiary gets up to $250,000 in coverage.

If you have an individual account, a joint account, and an IRA all at the same bank, you have three separate $250,000 limits. The individual account is covered up to $250,000, the joint account is covered up to $250,000 (per owner), and the IRA is covered up to $250,000. But if you have two individual accounts at the same bank, they share one $250,000 limit between them.

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

If your deposits at a single bank exceed $250,000 in the same category, only $250,000 is covered. The excess is uninsured. If the bank fails, you lose the money above the limit. This is not a tax or a fee—it is simply not covered by the FDIC may provide.

The most common way to protect money beyond $250,000 is to split it across multiple FDIC-member banks. If you have $400,000 in savings, you could put $250,000 at Bank A and $150,000 at Bank B. Both amounts are now fully covered because they are at different banks. You can do this with as many banks as you need.

Another option is to use different account categories at the same bank. If you have $500,000, you could put $250,000 in an individual account and $250,000 in a joint account (with a spouse or family member) at the same bank. Both would be fully covered because they are different categories. You could also add a retirement account with another $250,000, and a trust account with another $250,000—each with its own coverage limit.

FDIC coverage for joint accounts and family members

A joint account is insured as a separate category from individual accounts. If you and your spouse have a joint savings account with $400,000, the FDIC covers $250,000 of it. The coverage is not split between you—the entire $250,000 applies to the account as a whole.

However, if you each also 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. The joint account is also covered up to $250,000. So you could have up to $750,000 covered at one bank if you have all three account types.

If you have a joint account at one bank and another joint account at the same bank (with different co-owners), they still share the same $250,000 limit. The FDIC does not count each joint account separately—it counts all joint accounts you are a party to as one category.

Retirement accounts and special coverage rules

IRAs and other retirement accounts receive separate FDIC coverage from regular deposit accounts. A traditional IRA, Roth IRA, SEP-IRA, and SIMPLE IRA each get their own $250,000 limit at the same bank. If you have a traditional IRA and a Roth IRA at the same bank, you have $500,000 in coverage total ($250,000 per account type).

Coverage for retirement accounts does not depend on whether the account is in your name alone or jointly owned. The account type (traditional IRA, Roth IRA, etc.) determines the category, not the ownership structure.

Self-directed IRAs and IRAs held at brokerage firms follow the same rules. If the brokerage firm is FDIC-insured and the IRA holds cash or deposit products, the $250,000 limit applies. If the IRA holds stocks, bonds, or mutual funds, those investments are not covered by the FDIC.

How to check if your bank is FDIC-insured

Not all banks are FDIC members. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC, though the coverage limit is the same ($250,000). You can check whether a specific bank is FDIC-insured by visiting the FDIC's Bank Find tool on their website or calling the FDIC at 1-877-275-3342.

The FDIC logo is usually displayed in the bank's lobby or on its website, but the presence of the logo does not may provide membership. Use the Bank Find tool to confirm. If you are unsure, ask your bank directly whether it is an FDIC member.

Online banks and branches of national banks are FDIC-insured if the parent institution is a member. A deposit at an online bank owned by an FDIC-member bank counts toward that bank's coverage limit, not a separate limit for the online brand.

What FDIC coverage does not include

FDIC insurance covers deposit accounts only. It does not cover investment products sold by the bank, including stocks, bonds, mutual funds, annuities, or money market funds. Even if you buy these products through your bank's brokerage service, they are not FDIC-insured.

Safe deposit boxes are not covered. If you keep cash, jewelry, or documents in a safe deposit box at an FDIC-insured bank and the bank fails, the contents are not protected by the FDIC. Safe deposit box contents may be covered by homeowners insurance or other personal insurance policies.

Cashier's checks, money orders, and traveler's checks issued by the bank are not covered. Wire transfers out of the bank are not covered. Funds held in a brokerage account at the bank are not covered. Only money sitting in a deposit account—checking, savings, money market deposit account, or CD—is covered.

Frequently Asked Questions

If I have $300,000 in one checking account, how much is covered?

The FDIC covers $250,000. The remaining $50,000 is uninsured. If the bank fails, you lose the $50,000. To protect the full $300,000, you could move $50,000 to a different FDIC-member bank, or open a joint account or retirement account at the same bank and move $50,000 there.

Are savings accounts and checking accounts covered separately?

No. Both are in the "individual account" category, so they share one $250,000 limit at the same bank. If you have $150,000 in checking and $150,000 in savings at the same bank, only $250,000 total is covered. To cover both fully, move one account to a different bank.

Does FDIC coverage apply to money in a CD?

Yes. CDs are deposit products and are covered up to $250,000 per depositor per bank per category, just like savings and checking accounts. If you have multiple CDs at the same bank in the same category, they share the $250,000 limit.

What if my bank fails—how do I get my money back?

The FDIC takes over the failed bank and either arranges for another bank to assume your deposits or pays you directly. Covered deposits are usually available within a few business days. The FDIC will contact you with instructions. You do not need to do anything—coverage is automatic.

Can I have more than $250,000 covered at one bank?

Yes, if you use different account categories. You could have $250,000 in an individual account, $250,000 in a joint account, $250,000 in an IRA, and $250,000 in a trust account at the same bank—all fully covered. Each category has its own $250,000 limit.