Yes, money in a traditional savings account is FDIC insured up to $250,000 per depositor, per bank

The Federal Deposit Insurance Corporation (FDIC) covers deposits you hold in a savings account at any bank that displays the FDIC logo or lists itself as FDIC-insured. This protection is automatic — you do not have to sign up, pay a fee, or do anything extra. If the bank fails, the FDIC pays you back up to $250,000 from that single account.

The $250,000 limit applies to each depositor at each bank separately. If you have $250,000 in savings at Bank A and $250,000 in savings at Bank B, both amounts are fully covered. If you have $500,000 in one savings account at one bank, only $250,000 is covered.

FDIC insurance covers the account balance as it stands on the day the bank closes. Interest that has been added to your account counts toward the $250,000 limit. Pending transactions do not count — only money that has actually settled in the account.

Key Takeaways

  • FDIC insurance covers up to $250,000 per person per bank in a savings account, and this protection is automatic with no action required from you.
  • The $250,000 limit resets for each separate bank you use, so spreading money across multiple banks can protect larger amounts.
  • Joint accounts, retirement accounts, and trust accounts have their own separate $250,000 limits, which means you can protect more money by using different account types at the same bank.
  • Only banks display the FDIC logo; credit unions are insured by the NCUA instead, which offers the same $250,000 protection under different rules.
  • FDIC insurance does not cover investment products like stocks, bonds, or mutual funds, even if you buy them through your bank.

What counts toward the $250,000 limit in a savings account

The FDIC counts your account balance on the date the bank fails. If you have $180,000 in your savings account when the bank closes, you are covered for the full $180,000. Interest that has posted to the account before the closure date counts as part of your balance.

Money that is in the process of being transferred does not count. If you initiated a wire transfer of $50,000 but it has not yet left your account, that $50,000 is still part of your balance. Once the wire leaves, it no longer counts toward your limit at that bank.

Pending deposits also do not count until they settle. If you deposited a check that has not yet cleared, the FDIC does not count it toward your $250,000 limit. Once the check clears and the money is in your account, it counts.

How the $250,000 limit works across multiple banks

Each bank you use has its own separate $250,000 limit. This means you can hold $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C, and all three amounts are fully covered. The FDIC tracks coverage by the name of the bank, not by the account number.

If you move your money from one bank to another, the coverage does not follow it automatically. Your old bank's coverage ends when you withdraw the money. Your new bank's coverage begins when the money settles in your new account. There is no gap in coverage as long as you stay within the $250,000 limit at each bank.

Some banks own multiple subsidiary banks under different names. The FDIC may treat these as separate institutions for coverage purposes, but not always. Before you split money across what looks like different banks, check the FDIC's Bank Find tool to confirm whether they are covered separately or as one entity.

Special account types that have their own $250,000 limits

A joint account has its own $250,000 limit separate from any individual account you hold at the same bank. If you and your spouse have a joint savings account with $250,000, and you also have an individual savings account with $250,000 at the same bank, both are fully covered. The FDIC covers each owner's share of the joint account up to $250,000, so a joint account with two owners can actually be covered for up to $500,000 total.

Retirement accounts (IRAs, SEP-IRAs, and similar accounts) have their own $250,000 limit at each bank, separate from your regular savings account. A traditional IRA with $250,000 and a savings account with $250,000 at the same bank means both are fully covered.

Trust accounts are covered separately as well, up to $250,000 per beneficiary named in the trust. A revocable living trust that names three beneficiaries can be covered for up to $750,000 at a single bank, with each beneficiary's share protected up to $250,000.

What FDIC insurance does not cover

FDIC insurance covers the money in the account itself, but not investments you buy through your bank. If you purchase stocks, bonds, mutual funds, or exchange-traded funds (ETFs) through your bank's brokerage service, those are not FDIC-insured. They are covered by SIPC (Securities Investor Protection Corporation) instead, which has different rules and lower limits.

Safe deposit boxes are not covered by FDIC insurance. The contents of a safe deposit box — jewelry, documents, cash stored in the box — are not protected if the bank fails. Some banks offer their own insurance for safe deposit box contents, but you have to purchase it separately.

Money market accounts are FDIC-insured if they are held at an FDIC-insured bank, but they count toward your $250,000 limit along with your savings account. If you have $150,000 in a savings account and $150,000 in a money market account at the same bank, only $250,000 total is covered.

How to verify your bank is FDIC-insured

The easiest way to confirm FDIC coverage is to look for the FDIC logo on your bank's website or in the branch. The logo is a blue rectangle with white text. If you do not see it, ask a teller or call the bank directly.

You can also search the FDIC's Bank Find tool at banks.fdic.gov. Type in your bank's name and the state where you opened the account. The tool will show you the bank's official FDIC certificate number, the date it was insured, and any special coverage rules that apply to your account type.

If your bank is not listed in the FDIC database, your deposits are not FDIC-insured. This is rare for traditional banks, but it can happen with very small or newly chartered institutions. If you cannot find your bank in the database, move your money to an FDIC-insured bank.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC takes over and pays depositors directly. You do not have to file a claim or contact the FDIC — the agency identifies all insured accounts and sends payment automatically. Historically, this process has taken a few days to a few weeks, though the FDIC aims to pay within one business day.

The FDIC pays you by check or by transferring funds to a new account at another bank. If your bank fails on a Friday, you might receive payment by the following Monday, though this varies. The FDIC publishes a list of failed banks on its website if you want to track the status of your bank.

If your account balance exceeds $250,000, you lose the amount over the limit. The FDIC does not cover the excess, and you cannot recover it from the bank's remaining assets. This is why it is important to spread large amounts across multiple banks or use special account types like joint accounts and retirement accounts.

Frequently Asked Questions

Does FDIC insurance cover my savings account if I have multiple accounts at the same bank?

It depends on the account type. A regular savings account and a money market account count together toward one $250,000 limit. But a joint savings account, an IRA, and a trust account each have their own separate $250,000 limits at the same bank. Check with your bank about how your specific accounts are classified.

What if I have more than $250,000 and want to keep it all protected?

Open accounts at different FDIC-insured banks. You can also use special account types like joint accounts (which double the coverage) or retirement accounts (which have separate limits). The FDIC website has a calculator that shows you how much coverage you have across all your accounts.

Are online banks FDIC-insured?

Many online banks are FDIC-insured, but not all. Check the bank's website for the FDIC logo or search the Bank Find tool. Online banks that are FDIC-insured offer the same $250,000 coverage as brick-and-mortar banks.

Does FDIC insurance cover money I transfer out of my account?

No. Once money leaves your account, it is no longer covered by your bank's FDIC insurance. If you transfer $100,000 to another bank, it is covered by that bank's FDIC insurance once it settles there, not by your original bank.

What is the difference between FDIC and NCUA insurance?

FDIC insures banks; NCUA insures credit unions. Both offer $250,000 coverage per depositor per institution. The rules are slightly different — for example, NCUA has different rules for joint accounts — but the protection level is the same.