Most savings accounts at banks are FDIC insured, but not all accounts and not all banks

If your money is in a savings account at a bank that displays the FDIC logo or calls itself an "FDIC-insured institution," your account is covered. The Federal Deposit Insurance Corporation protects up to $250,000 per depositor, per bank, per account type. That means if the bank fails, you get your money back up to that limit—the FDIC pays you directly, not the bank.

The catch: not every place that holds your money is a bank. Credit unions use a different insurance system (the NCUA). Investment accounts, money market funds, and brokerage accounts are not FDIC insured. And if you have more than $250,000 in one savings account at one bank, only $250,000 is covered.

The fastest way to know for certain: go to the FDIC's BankFind tool at fdic.gov/bankfind. Type in your bank's name. If it shows up, you are covered. If it does not, your account is not FDIC insured.

Key Takeaways

  • FDIC insurance covers savings accounts, checking accounts, and money market deposit accounts at FDIC-insured banks up to $250,000 per depositor per bank.
  • The $250,000 limit applies to each account type separately, so you can have $250,000 in savings and $250,000 in checking at the same bank and both are covered.
  • Credit unions are insured by the NCUA, not the FDIC, and the coverage limit is also $250,000 but the rules differ slightly.
  • Brokerage accounts, investment accounts, and money market mutual funds are never FDIC insured, even if held at a bank.
  • You can verify your bank's FDIC status instantly using the BankFind tool on fdic.gov.

What types of accounts are covered and what are not

FDIC insurance covers deposit accounts—savings, checking, money market deposit accounts, and certificates of deposit (CDs). If you put money in one of these at an FDIC-insured bank, it is covered up to $250,000. Joint accounts are treated separately: if you and another person own a joint savings account, each of you gets $250,000 of coverage, for a total of $500,000 protected at that one bank.

Accounts that are not covered include brokerage accounts, stocks, bonds, mutual funds, money market mutual funds (different from money market deposit accounts), and investment advisory accounts. If your bank offers a brokerage service and you buy stocks through it, those stocks are not FDIC insured. The bank itself is insured, but the investments inside the account are not.

Retirement accounts—IRAs, 401(k)s, and similar—are covered by FDIC insurance if the money sits in a deposit account (like a savings account or CD) at an FDIC-insured bank. But if the IRA holds stocks or mutual funds, those holdings are not insured. The account type matters less than what is actually in the account.

How the $250,000 limit works across multiple accounts

The $250,000 limit is per depositor, per bank, per account type. That means you can have multiple accounts at the same bank and each type gets its own $250,000 of coverage. A savings account and a checking account at the same bank are separate, so you could have $250,000 in savings and $250,000 in checking and both would be fully covered.

But if you have two savings accounts at the same bank—say, one for emergencies and one for a vacation fund—they are added together. If the total is $300,000, only $250,000 is insured. The FDIC does not cover the extra $50,000.

If you want to protect more than $250,000, open accounts at different FDIC-insured banks. Money at Bank A and money at Bank B are insured separately. You could have $250,000 at five different banks and all of it would be covered. The FDIC's website has a calculator that shows you exactly how much of your money is covered based on how you have arranged your accounts.

Credit unions and NCUA insurance instead of FDIC

Credit unions are not banks and are not FDIC insured. Instead, they are insured by the National Credit Union Administration (NCUA). The coverage limit is the same—$250,000 per member, per credit union, per account type—but the rules are slightly different and the insurer is different.

If you have an account at a credit union, look for the NCUA logo on statements or the credit union's website. You can also search the NCUA's credit union locator at ncua.gov to confirm your credit union is insured. Most credit unions are, but a few are not.

The NCUA and FDIC are separate systems. Money at a credit union and money at a bank do not count toward the same $250,000 limit. You could have $250,000 at a credit union and $250,000 at a bank and both would be fully covered.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in. You do not have to do anything—the FDIC automatically pays you up to $250,000 per account type. In most cases, you have access to your money within a few business days. The FDIC either arranges for another bank to take over the failed bank's accounts (and you keep your account there) or it sends you a check.

The FDIC has a process for determining how much each depositor is owed. If you have $300,000 in a savings account, the FDIC will pay you $250,000. You lose the extra $50,000. This is rare—bank failures are uncommon, and most people never experience one—but it is why the limit matters.

You do not need to file a claim or contact the FDIC yourself. The FDIC contacts you. If you have questions about a specific failed bank, the FDIC's website lists all failed banks and what happened to depositors' money.

How to check if your bank is FDIC insured

The simplest method is the FDIC's BankFind tool at fdic.gov/bankfind. Enter your bank's name and the state where your branch is located. The tool will tell you whether the bank is FDIC insured, what the bank's official name is (important because some banks use different names for marketing), and which branches are covered.

You can also look for the FDIC logo on your bank's website, on your debit card, or on statements. Most FDIC-insured banks display it prominently. But the logo alone is not proof—use BankFind to be certain.

If you bank online at a smaller or newer bank, check the bank's website for FDIC status. Some online banks are FDIC insured; others are not. The bank should state its insurance status clearly. If you cannot find it, contact the bank directly or use BankFind.

What is not covered by FDIC insurance

Safe deposit boxes are not covered. If you store jewelry, documents, or other valuables in a safe deposit box at a bank, the FDIC does not insure them if they are lost or stolen. You would need a separate homeowners or renters insurance policy to cover those items.

Cashier's checks and money orders issued by the bank are not covered by FDIC insurance on your account. Once you have a cashier's check in hand, it is a bank obligation, not a deposit account, and it is not insured the same way.

Funds held in trust for someone else—such as money you are holding as an executor of an estate—may have different coverage rules. The FDIC treats these as separate from your personal accounts, but the rules are complex. If you are holding a large sum in trust, contact the FDIC or your bank to understand what is covered.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is protected?

Only $250,000 is FDIC insured. The remaining $50,000 is not covered. To protect all $300,000, you would need to split it between two FDIC-insured banks—$250,000 at one bank and $50,000 at another.

Are joint accounts covered differently than individual accounts?

Yes. A joint savings account gets $250,000 of coverage for each owner. If you and your spouse own a joint account with $400,000, you each have $250,000 of coverage, so the full $400,000 is protected. An individual account at the same bank gets a separate $250,000 of coverage.

Is my money market account FDIC insured?

It depends on what type it is. A money market deposit account at an FDIC-insured bank is covered. A money market mutual fund is not covered by FDIC insurance, even if you bought it through a bank. Check your account statements or ask your bank which type you have.

Do I need to do anything to activate FDIC insurance on my account?

No. If your bank is FDIC insured, your account is automatically covered up to $250,000. You do not need to register, pay a fee, or take any action. The coverage is automatic.

What if my bank is not FDIC insured?

Your deposits are not protected by federal insurance. If the bank fails, you may lose your money. Before opening an account, use BankFind to confirm the bank is FDIC insured. Most banks are, but some online banks and smaller institutions are not.