The FDIC insures up to $250,000 per depositor, per bank, per account category

The Federal Deposit Insurance Corporation (FDIC) is the federal agency that protects your money if a bank fails. When a bank closes, the FDIC pays depositors from its insurance fund. The standard coverage limit is $250,000 per person, per bank, per account type. If you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose the remaining $50,000.

This $250,000 limit has been in place since 2010. It applies to most deposit accounts: checking, savings, money market accounts, and certificates of deposit (CDs). The limit resets if you move your money to a different bank — so $250,000 at Bank A and $250,000 at Bank B are both fully covered.

Not all financial institutions are FDIC-insured. Banks must be members of the FDIC system. Credit unions are insured by a separate agency, the National Credit Union Administration (NCUA), which also covers up to $250,000 per member, per credit union. Brokerage firms, investment accounts, and money market mutual funds are not FDIC-insured.

Key Takeaways

  • The FDIC covers $250,000 per person, per bank, per account type — so a checking account and savings account at the same bank are insured separately.
  • Coverage applies only to deposits at FDIC-member banks, not to investments, stocks, bonds, or money held at brokerages.
  • If you have more than $250,000 at one bank, you can increase coverage by opening accounts in different names (joint accounts, trust accounts, retirement accounts) because each category is insured separately.
  • Credit unions use the NCUA system instead of the FDIC, but the coverage limit and rules are the same: $250,000 per member, per credit union.
  • You can check whether a specific bank or credit union is insured by searching the FDIC's BankFind tool or the NCUA's credit union locator on their websites.

How account type changes your coverage

The FDIC divides accounts into separate categories, and you get $250,000 coverage in each one at the same bank. This means you can hold more than $250,000 total and still be fully covered if you use different account types.

The main categories are: single accounts (in your name only), joint accounts (shared with another person), retirement accounts (IRAs, Roth IRAs, SEP-IRAs), trust accounts (funds held for a beneficiary), and accounts held in the name of a business. Each category is insured separately. For example, you could have $250,000 in a checking account in your name, $250,000 in a joint savings account with your spouse, and $250,000 in an IRA — all at the same bank, all fully covered.

Accounts registered under different names also count separately. If you have an account in your name and another in your spouse's name at the same bank, each gets its own $250,000 limit. The FDIC does not combine them.

What the FDIC does not cover

FDIC insurance covers the money itself — the dollars in your account. It does not cover investment losses, fees, or interest you did not receive. If you bought stocks or bonds through your bank's brokerage arm, those are not FDIC-insured, even though the cash sitting in your bank account is.

Safe deposit boxes are not covered. If you store jewelry, documents, or valuables in a bank's safe deposit box and the bank fails, the FDIC does not reimburse you. Those items are your responsibility to insure separately, usually through homeowners or renters insurance.

Funds held in a brokerage account, even if the brokerage is owned by a bank, are not FDIC-insured. Brokerages have their own insurance system called SIPC (Securities Investor Protection Corporation), which covers up to $500,000 per customer but only for missing securities or cash, not for investment losses.

When you have more than $250,000 at one bank

If you have more than $250,000 in a single account type at one bank, the excess is not covered. The most common way to protect additional funds is to split them across different account categories or different banks.

Opening a joint account is one option. If you and your spouse each have $250,000 in individual checking accounts and then open a joint savings account with $250,000, all three accounts are covered separately. The joint account is insured up to $250,000 as a separate category.

A revocable trust account (also called a living trust) can also increase coverage. If you name a beneficiary in a trust account, the FDIC covers up to $250,000 per beneficiary you name, up to a total of $1.25 million in trust accounts at one bank. This requires the trust to be set up properly and the beneficiary designation to be documented with the bank.

The simplest approach for most people is to open accounts at multiple banks. Your $250,000 at Bank A is fully covered, and your $250,000 at Bank B is fully covered. There is no limit to how many banks you can use.

How to verify your bank is FDIC-insured

Not every bank is FDIC-insured. Online banks, credit unions, and some smaller institutions may use different insurance systems. Before you deposit money, confirm the bank's status.

The FDIC operates a free search tool called BankFind on its website (fdic.gov). Enter the bank's name and state, and the tool shows whether it is FDIC-insured, the insurance certificate number, and the date it joined the system. If the bank does not appear in BankFind, it is not FDIC-insured.

Credit unions can be searched through the NCUA's credit union locator (ncua.gov). Enter the credit union's name, and the tool confirms whether it is NCUA-insured. Most credit unions are, but a few are not.

You can also ask the bank directly. Banks are required to display FDIC insurance signage in their branches and on their websites. If you cannot find it, call the bank's customer service line and ask whether they are FDIC-insured.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors. The process is usually fast. In most cases, depositors receive their insured funds within one to three business days. The FDIC either transfers your account to another bank (so you keep the same account number and online access) or sends you a check.

You do not have to file a claim or contact the FDIC yourself. The FDIC automatically identifies all insured accounts and pays them. If your account balance is under $250,000, you receive the full amount. If it is over $250,000, you receive $250,000 (or the appropriate limit for that account category).

Bank failures are rare in the United States. The FDIC has been operating since 1933, and the insurance fund has paid out in fewer than 600 bank failures over that time. Most people never experience a bank failure in their lifetime.

Frequently Asked Questions

Does FDIC insurance cover my debit card purchases or ATM withdrawals?

No. FDIC insurance covers the money in your account, not transactions. If someone steals your debit card and makes unauthorized purchases, that is a fraud issue, not an insurance issue. Your bank's fraud protection and your own liability limits (usually $0 to $50 for unauthorized debit card use) handle that separately.

If I have $500,000 split between two banks, am I fully covered?

Yes. If you have $250,000 at Bank A and $250,000 at Bank B, both amounts are fully FDIC-insured. The $250,000 limit applies per bank, not across all your banks combined. You can have as much money as you want across multiple banks and be fully covered.

Are savings bonds or CDs held at a bank covered by FDIC insurance?

CDs are covered up to $250,000 per bank, per account category, just like savings accounts. U.S. savings bonds are not FDIC-insured — they are backed by the U.S. government directly, which is a different form of protection. If you hold savings bonds at a bank, the bank itself is not insuring them.

What if my bank is sold to another bank — do I lose coverage?

No. If your bank is acquired by another bank, your account transfers to the new bank and coverage continues. The FDIC does not interrupt insurance when banks merge. You keep the same coverage limits.

Can I get more than $250,000 covered at a single bank?

Yes, if you use multiple account categories. A single checking account is limited to $250,000, but you can have $250,000 in a checking account, $250,000 in a savings account, $250,000 in an IRA, and $250,000 in a joint account — all at the same bank, all fully covered. Each category is insured separately.