Your checking account is insured up to $250,000 per depositor, per bank, if the bank is FDIC-insured

Most checking accounts held at banks in the United States are covered by FDIC insurance. The Federal Deposit Insurance Corporation protects your money if the bank fails — you get your deposits back, up to the limit. The standard limit is $250,000 per person, per bank. If you have $50,000 in checking at Bank A and $200,000 in checking at Bank B, both are fully covered because they are at different banks.

Not every bank is FDIC-insured, though most are. Credit unions use a different system called NCUA insurance, which works the same way but is run by the National Credit Union Administration. Online banks, regional banks, and national chains are usually insured — but you need to verify before you move money there.

The coverage applies to the money itself, not to investment accounts, brokerage accounts, or mutual funds held at the same institution. A checking or savings account at a bank is covered. A stock brokerage account at that same bank is not.

Key Takeaways

  • FDIC insurance covers up to $250,000 per depositor per bank for checking and savings accounts combined.
  • You can confirm your bank is FDIC-insured by searching the FDIC's BankFind tool or looking for the FDIC logo on the bank's website or in the branch.
  • If you have more than $250,000 at one bank, the excess is not covered, so splitting deposits across multiple banks protects the full amount.
  • Credit unions are insured by NCUA, not FDIC, but the coverage limit and rules are nearly identical.
  • Investment accounts, brokerage accounts, and money market mutual funds at a bank are not covered by FDIC insurance.

How to check if your specific bank is FDIC-insured

The fastest way is to visit the FDIC BankFind tool at bankfind.fdic.gov. Type in your bank's name or the city where your branch is located. The search will show you whether that bank holds FDIC insurance, which specific branches are covered, and the insurance certificate number.

You can also look for the FDIC logo in your bank's lobby or on its website — it is usually displayed near the entrance or in the footer of the website. The logo says "Member FDIC" or "FDIC Insured." If you see it, the bank is covered. If you do not see it anywhere and the BankFind tool shows no results, contact your bank directly and ask whether it holds FDIC insurance.

Online banks and smaller regional banks are sometimes FDIC-insured but less visible about it. Check the bank's website for a statement about insurance coverage, usually found in the "Security" or "About Us" section. If the information is not there, call the bank's customer service line and ask directly.

What happens if you have more than $250,000 at one bank

Any amount over $250,000 at a single bank is not covered by FDIC insurance. If the bank fails, you lose the excess. This matters if you are holding a large sum — a business account with $500,000, an inheritance, or proceeds from a home sale.

The solution is to split your money across multiple FDIC-insured banks. You can have $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C, and all three amounts are fully covered. Each bank is a separate entity for insurance purposes, even if they are owned by the same parent company. For example, Bank of America and Merrill Lynch are both owned by Bank of America Corporation, but they are separate FDIC-insured entities.

Some banks offer sweep accounts or deposit networks that automatically move money between multiple banks to keep each account under the $250,000 limit. Ask your bank whether this service is available and whether there are any fees.

Coverage for joint accounts and special account types

A joint checking account — one held by two people together — is insured for $250,000 per person, not per account. If you and your spouse each own half of a $400,000 joint account, you each have $200,000 covered, for a total of $400,000 in coverage. The account itself is not the limit; each owner's share is.

Accounts held in trust for a minor, or accounts designated as payable-on-death (POD) to a named beneficiary, receive separate coverage. A checking account with your child named as POD beneficiary is insured for $250,000 for you and another $250,000 for your child. This is different from a joint account and can be useful if you want to protect a larger total amount.

Retirement accounts — IRAs, SEP-IRAs, and similar accounts — are also insured separately. An IRA at Bank A is covered for $250,000 in addition to your regular checking account at the same bank. This separation exists because retirement accounts have different tax rules and are treated as a distinct category by the FDIC.

What FDIC insurance does and does not cover

FDIC insurance covers money in checking accounts, savings accounts, money market deposit accounts (the bank kind, not the mutual fund kind), and certificates of deposit (CDs). It covers the principal and any interest earned up to the moment the bank fails. It does not cover losses from fraud, theft, or unauthorized transactions — those are handled separately under your bank's fraud protection policies.

FDIC insurance does not cover stocks, bonds, mutual funds, or brokerage accounts, even if they are held at a bank. It does not cover safe deposit boxes or items stored in them. It does not cover U.S. Treasury securities, even though they are purchased through a bank. If you want protection for those assets, you need different insurance — brokerage accounts are typically covered by SIPC (Securities Investor Protection Corporation) up to $500,000, but that is a separate system.

The insurance also does not cover losses from poor investment choices or market downturns. If you put $100,000 in a CD at a bank and the bank fails before the CD matures, you get your $100,000 back. If you put $100,000 in a stock mutual fund sold by the bank and the stock market drops, FDIC insurance does not restore your losses.

What to do if your bank fails

If your bank is FDIC-insured and it fails, the FDIC takes over and pays you directly. You do not need to file a claim or take any action — the FDIC automatically identifies all insured deposits and sends you the money. Historically, this process takes a few days to a few weeks. The FDIC will contact you with instructions on how to receive your funds, usually by check or electronic transfer.

Your debit card and online access will stop working once the bank closes, typically at the end of the business day the failure is announced. You will not be able to withdraw money from ATMs or make transfers. The FDIC's payment is separate from any remaining balance in your account — you receive the insured amount, period.

Bank failures are rare in the United States. The last significant wave occurred during the 2008 financial crisis. Since then, the FDIC has closed fewer than a dozen banks per year on average. FDIC insurance exists precisely because failures can happen, but they are not common.

Credit unions and NCUA insurance

If your account is at a credit union rather than a bank, it is insured by the National Credit Union Administration (NCUA), not the FDIC. The coverage is nearly identical: $250,000 per member, per credit union, for checking and savings accounts combined. Joint accounts, POD accounts, and retirement accounts receive the same separate coverage as they do under FDIC insurance.

You can check whether a credit union is NCUA-insured by visiting the NCUA's Credit Union Locator at cu.ncua.gov. Type in the credit union's name or your state, and the search will show you whether it holds insurance. Most credit unions in the United States are federally insured, but some state-chartered credit unions carry only state insurance, which may have different limits.

The process for receiving your money if a credit union fails is the same as with a bank: the NCUA takes over, identifies insured deposits, and pays you directly. You do not need to do anything.

Frequently Asked Questions

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

$250,000 is covered by FDIC insurance. The remaining $50,000 is not protected. To cover the full amount, move $50,000 to a different FDIC-insured bank, or ask your current bank whether it offers a sweep service that automatically splits deposits across multiple banks.

Does FDIC insurance cover money I lost to fraud or a scam?

No. FDIC insurance covers bank failure only. If someone stole your login information or tricked you into sending money, that is a fraud claim, not an insurance claim. Report it to your bank immediately — banks have fraud protection policies separate from FDIC insurance, and you may be able to recover the money through that process.

If I move my money to a different bank, do I lose my FDIC coverage?

No. Your coverage transfers with your money. Once the funds are deposited at the new bank, they are covered up to $250,000 at that bank. There is no gap in coverage as long as both banks are FDIC-insured.

Are online banks FDIC-insured?

Most are, but not all. Search the bank's name in the FDIC BankFind tool to confirm. Many online banks are actually divisions of larger FDIC-insured banks, so they carry the same coverage. Always verify before opening an account.

What if my bank is FDIC-insured but my specific branch is not listed in BankFind?

All branches of an FDIC-insured bank are covered under the same insurance certificate. If the bank name appears in BankFind, your account is insured regardless of which branch you use. Contact the bank if you want confirmation for your specific location.