Yes, Bank of America savings accounts are FDIC insured up to the standard limit
Bank of America is an FDIC-insured bank, which means your savings account deposits are protected by the Federal Deposit Insurance Corporation. The standard coverage limit is $250,000 per depositor, per bank, per account category. If your account balance stays at or below $250,000, your money is fully protected if the bank fails.
This protection applies to most savings products Bank of America offers, including regular savings accounts, money market accounts, and certain certificate of deposit (CD) accounts. The coverage is automatic — you do not need to do anything to set up it, and Bank of America does not charge you for it.
The key word is "per account category." This means if you have multiple account types at Bank of America — a savings account, a checking account, and a CD — each one is insured separately up to $250,000. The types that matter for this split are savings accounts, checking accounts, money market accounts, time deposits (CDs), and retirement accounts (IRAs). A regular savings account and a money market account are different categories, so you could have $250,000 in each and both would be fully covered.
Key Takeaways
- Bank of America savings accounts are covered by FDIC insurance up to $250,000 per account category per person.
- The coverage is automatic and costs you nothing — you do not need to register or take any action.
- If you have more than $250,000 in a single account type, the amount above $250,000 is not insured.
- Joint accounts, retirement accounts, and trust accounts are insured separately, so you may be able to protect more than $250,000 total at the same bank by using different account structures.
- FDIC insurance protects you only if the bank fails — it does not cover fraud, theft, or unauthorized transfers.
How the $250,000 limit works with joint accounts and other structures
If you have a joint savings account at Bank of America with another person, that account is insured separately from your individual accounts. The $250,000 limit applies to the joint account as a whole, not to each person's share. So if you and your spouse have a joint savings account with $300,000, only $250,000 is covered.
Retirement accounts (IRAs, SEP-IRAs, and similar accounts) are also insured separately. If you have a Bank of America IRA with $250,000 and a Bank of America savings account with $250,000, both are fully covered because they are different account categories. The same rule applies to trust accounts and accounts held in the name of a minor.
If you have more than $250,000 to deposit, you can protect all of it by spreading it across different account types or different banks. For example, $250,000 in a Bank of America savings account plus $250,000 in a Bank of America money market account would both be fully insured. Alternatively, you could keep $250,000 at Bank of America and $250,000 at another FDIC-insured bank.
What FDIC insurance actually covers and what it does not
FDIC insurance covers the balance in your account if Bank of America becomes insolvent and closes. This is rare — no FDIC-insured bank has failed since 2023 — but the insurance exists for that scenario. It also covers accrued interest on your account up to the $250,000 limit.
FDIC insurance does not cover losses from fraud, theft, or unauthorized transfers. If someone steals your debit card and drains your account, or if you are tricked into sending money to a scammer, FDIC insurance will not reimburse you. Those situations fall under Bank of America's fraud liability policies, which are separate from FDIC coverage. You would need to report the fraud to the bank and follow their dispute process.
FDIC insurance also does not cover investment products like stocks, bonds, mutual funds, or brokerage accounts, even if they are held at Bank of America. If you have money in a Bank of America investment account, that money is not FDIC insured. Money market funds are also not covered, though money market deposit accounts (which are different) are.
Checking the FDIC status of your specific account
You can confirm that your Bank of America account is FDIC insured by looking at your account documents or the bank's website. Bank of America displays FDIC insurance information in its account disclosures, which you receive when you open an account and can request at any time.
The FDIC also maintains a tool called the FDIC's Electronic Deposit Insurance Estimator (EDIE), available on the FDIC website, where you can enter your Bank of America account details and see exactly how much of your balance is covered. This tool accounts for all your account categories and structures at the bank.
If you have questions about whether a specific Bank of America product is FDIC insured, you can call the bank directly or visit a branch. Bank of America customer service can tell you the coverage status of any account you hold with them.
What happens if Bank of America fails
If Bank of America were to fail, the FDIC would step in and either arrange for another bank to take over your accounts or pay out your insured deposits directly. In either case, you would have access to your money up to the $250,000 limit per account category. The FDIC typically processes payouts within a few business days.
During a bank failure, the FDIC protects your access to your insured funds — you would not lose money that is within the coverage limit. However, if your balance exceeds $250,000 in a single account category, the excess would not be protected and you could lose it.
Bank failures are extremely rare in the modern U.S. banking system. The FDIC has been in operation since 1933, and the last bank failure occurred in 2023. Bank of America is one of the largest banks in the country and is subject to ongoing regulatory oversight, which makes failure unlikely.
Comparing FDIC coverage across different account types
| Account Type | FDIC Coverage Limit | Insured Separately? |
|---|---|---|
| Regular Savings Account | $250,000 per person | Yes, from checking and other types |
| Checking Account | $250,000 per person | Yes, from savings and other types |
| Money Market Deposit Account | $250,000 per person | Yes, from savings and checking |
| Certificate of Deposit (CD) | $250,000 per person | Yes, from other account types |
| Individual Retirement Account (IRA) | $250,000 per person | Yes, from all other account types |
| Joint Account | $250,000 per joint account | Yes, from individual accounts |
| Investment/Brokerage Account | Not FDIC insured | No coverage |
Frequently Asked Questions
If I have $500,000 in a Bank of America savings account, how much is insured?
Only $250,000 is FDIC insured. The remaining $250,000 is not covered. If you want to protect all $500,000, you could keep $250,000 in a Bank of America savings account and move $250,000 to a money market deposit account at the same bank (which is a separate category), or move the second $250,000 to another FDIC-insured bank.
Does FDIC insurance cover money I lose to a scam or fraud?
No. FDIC insurance only covers losses if the bank itself fails. If you are defrauded or your account is compromised, you need to report it to Bank of America and follow their fraud dispute process. Bank of America has its own fraud liability policies that may cover some losses, but those are separate from FDIC insurance.
Is my Bank of America money market fund covered by FDIC insurance?
It depends on the product. A money market deposit account is FDIC insured, but a money market mutual fund is not. If you are unsure which one you have, check your account documents or call Bank of America to ask whether it is a deposit account or an investment product.
If I have a joint account with my spouse, is the full $250,000 covered or is it split between us?
The full $250,000 is covered as a joint account. FDIC insurance does not split the limit between the two owners — the entire balance up to $250,000 is protected. If the account has $300,000, only $250,000 is insured, regardless of how much each person contributed.
What if I have accounts at multiple banks — does FDIC insurance cover all of them?
Yes. FDIC insurance is per bank, not per person. You can have $250,000 insured at Bank of America and $250,000 insured at another FDIC-insured bank, and both amounts are fully covered. The limit resets at each bank.