Yes, Bank of America savings accounts are FDIC insured up to the standard limit
Bank of America is an FDIC-insured bank, which means the Federal Deposit Insurance Corporation protects deposits in your savings account. The standard coverage limit is $250,000 per depositor, per bank, per account category. If your savings account balance stays at or below $250,000, your money is fully protected if the bank fails.
This protection is automatic — you do not need to do anything to set up it. The moment you open a Bank of America savings account, FDIC insurance begins covering your deposits at no cost to you.
Key Takeaways
- Bank of America savings accounts are covered by FDIC insurance up to $250,000 per account holder per bank.
- The $250,000 limit applies to each account category separately, so a savings account and a checking account are insured separately.
- Joint accounts receive $250,000 coverage per owner, meaning a joint savings account with two owners is covered up to $500,000 total.
- Money market accounts and certificates of deposit (CDs) at Bank of America are also FDIC insured under the same $250,000 limit per category.
How the $250,000 limit works with multiple accounts
The FDIC limit is per account category, not per account. This means if you have two separate savings accounts at Bank of America, the $250,000 coverage applies to your total balance across both accounts combined, not to each one individually. If you hold $150,000 in one savings account and $120,000 in another, only $250,000 total is insured, leaving $20,000 unprotected.
Different account categories are insured separately. A savings account, a checking account, and a money market account each get their own $250,000 limit. So you could hold $250,000 in a savings account, $250,000 in a checking account, and $250,000 in a money market account, and all three amounts would be fully covered.
Certificates of deposit (CDs) are also covered by FDIC insurance, but they count as a separate category from savings accounts. A $250,000 CD and a $250,000 savings account would both be fully insured.
Joint accounts and FDIC coverage
If you own a joint savings account with another person, the FDIC insures up to $250,000 for each owner. A joint account with two owners is therefore covered up to $500,000 total — $250,000 attributed to you and $250,000 attributed to the other owner. If the account holds $300,000 and both owners contributed equally, each owner's $150,000 share is fully covered.
The coverage is based on ownership, not on how much each person contributed. If one person deposited all the money in a joint account, the FDIC still divides the coverage $250,000 per owner. This matters if the account balance exceeds $500,000 — the excess is not insured.
What FDIC insurance does and does not cover
FDIC insurance protects your deposits if Bank of America becomes insolvent and closes. It covers the principal balance in your account plus any interest that has been earned and posted to the account as of the date of the bank's failure. It does not cover investment losses, fees, or penalties.
FDIC insurance does not protect you from fraud, theft, or unauthorized withdrawals by someone else. If someone gains access to your account and drains it, that is a separate matter handled through Bank of America's fraud investigation process, not through FDIC coverage. Similarly, if you lose money on an investment product sold by Bank of America (such as stocks or mutual funds), FDIC insurance does not cover that loss — those products are not bank deposits.
Account types that are and are not FDIC insured at Bank of America
| Account Type | FDIC Insured | Coverage Limit |
|---|---|---|
| Savings Account | Yes | $250,000 per owner |
| Checking Account | Yes | $250,000 per owner |
| Money Market Account | Yes | $250,000 per owner |
| Certificate of Deposit (CD) | Yes | $250,000 per owner |
| Individual Retirement Account (IRA) | Yes | $250,000 per owner (separate category) |
| Brokerage Account | No | Not covered by FDIC |
| Stocks, Bonds, Mutual Funds | No | Not covered by FDIC |
IRAs held at Bank of America receive their own separate $250,000 FDIC coverage limit. This means you could hold $250,000 in an IRA and $250,000 in a regular savings account, and both amounts would be fully insured. Brokerage accounts and investment products like stocks, bonds, and mutual funds are not FDIC insured, though they may be covered by SIPC (Securities Investor Protection Corporation) insurance if held through a brokerage.
What to do if your balance exceeds $250,000
If you have more than $250,000 in a single account category at Bank of America, the amount over $250,000 is not FDIC insured. You have several options to protect the excess. You can open accounts at other FDIC-insured banks — each bank's $250,000 limit is separate, so $250,000 at Bank of America and $250,000 at another bank are both fully covered. You can also use different account categories at Bank of America: a savings account, checking account, and money market account each have their own $250,000 limit.
If you have a spouse or family member, you can open a joint account, which doubles the coverage for that account category. A joint savings account with your spouse covers up to $500,000 ($250,000 per owner). You can also open an IRA if you are not already using one, which provides another separate $250,000 of coverage.
How to verify FDIC coverage for your specific situation
The FDIC provides an online tool called the FDIC Coverage Calculator that shows exactly how much of your Bank of America deposits are insured based on your account structure. You enter information about your accounts — whether they are individual, joint, or in trust — and the calculator tells you the covered and uncovered amounts.
You can also contact Bank of America directly to ask about FDIC coverage on your specific accounts. Bank of America statements typically include a notice about FDIC insurance, and the bank's website has information about coverage limits. If you have questions about a specific account structure, Bank of America customer service can walk you through how the limits explore to your situation.
Frequently Asked Questions
If Bank of America fails, how long does it take to get my insured money back?
The FDIC typically returns insured deposits within one to two business days after a bank closes. In most cases, you can access your money through another bank or receive a check. The FDIC has a track record of returning deposits quickly, though the exact timeline depends on the complexity of the bank closure.
Does FDIC insurance cover money I transfer out of my Bank of America account?
No. FDIC insurance only covers deposits held at the bank. Once you transfer money to another bank, it is insured by that bank's FDIC coverage, not by Bank of America's. The coverage follows the money to wherever it is deposited.
Are savings accounts at Bank of America branches covered differently than online savings accounts?
No. FDIC coverage is the same whether you hold your account at a Bank of America branch, through their online platform, or through any other channel. The coverage limit and rules are identical — $250,000 per account category per owner.
What happens to my FDIC coverage if I add someone to my account as a signer?
Adding a signer to an account does not change FDIC coverage. The account remains insured as an individual account with a $250,000 limit. If you want to increase coverage, you would need to convert it to a joint account, which would give each owner $250,000 of separate coverage.
Can I lose FDIC coverage if I do not use my account for a long time?
No. FDIC coverage remains in place as long as the account exists and is held at an FDIC-insured bank, regardless of how often you use it. Inactive accounts are still covered up to the $250,000 limit.