Your savings account is insured up to $250,000 per depositor, per bank, per account category — but only if your bank is FDIC-insured

The Federal Deposit Insurance Corporation (FDIC) covers most savings accounts at banks that participate in the program. The standard coverage limit is $250,000 per person, per bank. That means if you have $300,000 in a savings account at one FDIC-insured bank, the FDIC covers $250,000 and you lose the rest if the bank fails. If you have $250,000 at one bank and $250,000 at a different bank, both are fully covered because they are separate institutions.

Not every bank is FDIC-insured. Credit unions use a different system called NCUA insurance, which works the same way ($250,000 per person, per credit union) but is run by the National Credit Union Administration. Online banks, brick-and-mortar banks, and branches of foreign banks operating in the US can all be FDIC-insured — the insurance depends on the institution, not the type of account or how you access it.

The FDIC does not cover investment accounts, money market funds, stocks, bonds, or mutual funds. It covers only deposit accounts: savings accounts, checking accounts, money market deposit accounts, and certificates of deposit (CDs). If your bank offers a brokerage service or investment products, those sit outside FDIC protection.

Key Takeaways

  • FDIC insurance covers up to $250,000 per depositor, per bank, per account category, so you can have multiple accounts at the same bank and each may be covered separately if they are in different categories.
  • You can verify whether your bank is FDIC-insured by searching the FDIC's BankFind tool on fdic.gov or by asking your bank directly.
  • Credit unions are insured by NCUA, not FDIC, but the coverage limit and rules are the same.
  • Joint accounts, retirement accounts (IRAs), and trust accounts are each insured separately up to $250,000, so a married couple can have up to $500,000 covered in a joint savings account.

How to check if your bank is FDIC-insured

Go to BankFind on the FDIC website (fdic.gov/bankfind). Type in your bank's name or the city where your branch is located. The search will show you whether that institution is FDIC-insured, which FDIC region covers it, and the date it joined the program. If your bank does not appear in BankFind, it is not FDIC-insured.

You can also call your bank's customer service line and ask directly: "Is my account FDIC-insured?" They will tell you yes or no. If they say no, ask whether they carry private deposit insurance instead — some banks do, though it is less common and the coverage may differ.

If you use an online bank, check its website for an FDIC insurance statement. Most online banks are FDIC-insured and will display this prominently. If you cannot find it, use BankFind or call the bank to confirm.

How FDIC coverage works across multiple accounts at one bank

The $250,000 limit applies per account category, not per account. This means you can have more than $250,000 covered at a single FDIC-insured bank if your money is in different categories. A single account (in your name alone) is one category. A joint account (shared with another person) is a separate category. An IRA or retirement account is a third category. A trust account is a fourth.

Example: You have $250,000 in a savings account in your name, $250,000 in a joint savings account with your spouse, and $250,000 in an IRA at the same bank. All three are fully covered because they are in different categories. But if you have $300,000 in one savings account in your name and $100,000 in another savings account in your name at the same bank, only $250,000 total is covered — they are both single accounts, so they count as one category.

Revocable trust accounts (accounts you set up to pass to named beneficiaries after your death) are insured up to $250,000 per beneficiary, up to a total of $1.25 million per depositor. This is a special rule for trusts only and requires the trust to be properly documented.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors up to the insurance limit. You do not have to do anything — the FDIC contacts you. Historically, this process has taken a few days to a few weeks. The FDIC transfers your insured balance to another bank, or it sends you a check.

The FDIC has a Deposit Insurance Estimator tool on its website (fdic.gov/resources/deposit-insurance-estimator) where you can enter your account details and see exactly how much is covered. This is useful if you have multiple accounts or account types and want to verify your coverage before a problem occurs.

Bank failures are rare in the US. The FDIC has been in operation since 1933, and the vast majority of banks remain solvent. The insurance exists as a safety net, not because failure is common.

Coverage gaps: what FDIC insurance does not cover

FDIC insurance does not cover safe deposit boxes, contents stored in them, or items held in custody. If you keep jewelry, documents, or other valuables in a safe deposit box at an FDIC-insured bank, those items are not insured by the FDIC. You would need a separate homeowner's or renter's insurance policy to cover them.

Investment products held at a bank — stocks, bonds, mutual funds, brokerage accounts — are not FDIC-insured. If the bank fails, those assets are held separately and returned to you, but they are not covered by FDIC insurance. Some brokerages carry SIPC insurance (Securities Investor Protection Corporation), which is different and covers investment accounts up to $500,000.

Cashier's checks, money orders, and traveler's checks issued by the bank are not covered. Neither are funds held in escrow or in a lawyer's trust account (unless the lawyer's bank has set up the account specifically as a client trust account, which some do).

What to do if your bank is not FDIC-insured

If you discover your bank is not FDIC-insured, you have a few options. The simplest is to move your money to an FDIC-insured bank. Most banks can transfer your account electronically, and the process usually takes a few business days.

Some non-FDIC banks carry private deposit insurance instead. This insurance is sold by private companies and may cover deposits up to $250,000 or higher, depending on the policy. However, private insurance is less regulated than FDIC insurance and may have gaps or exclusions. If your bank offers private insurance, read the policy carefully to understand what is and is not covered.

Credit unions that are not NCUA-insured are rare, but they exist. If you use a credit union, verify it is NCUA-insured by searching the NCUA's credit union locator tool on ncua.gov or by asking the credit union directly.

Frequently Asked Questions

If I have $500,000 in a savings account at one bank, how much is covered?

Only $250,000 is covered. The FDIC limit is $250,000 per depositor, per bank, per account category. If you want to protect the full $500,000, you would need to split it between two different FDIC-insured banks, with $250,000 at each.

Are online savings accounts FDIC-insured?

Most online banks are FDIC-insured, but not all. Check the bank's website for an FDIC insurance statement, or search BankFind on fdic.gov. Online banks often offer higher interest rates partly because they have lower overhead, not because they lack insurance.

Is my money covered if I have it in a CD?

Yes, CDs at FDIC-insured banks are covered up to $250,000 per depositor, per bank. CDs are treated as deposit accounts, not investments, so they receive the same FDIC protection as savings accounts.

What if I have a joint account with my spouse — is it covered twice?

Joint accounts are insured separately from individual accounts. A joint account is covered up to $250,000 total, not $250,000 per person. However, if you also have an individual savings account at the same bank, that individual account is covered up to another $250,000, so together you could have up to $500,000 covered at one bank.

Do I need to do anything to activate FDIC insurance?

No. FDIC insurance is automatic at all participating banks. You do not need to sign up, pay a fee, or take any action. If your bank is FDIC-insured, your deposits are covered from the moment you open the account.