Your deposits are insured up to $250,000 per account category at each bank, through the Federal Deposit Insurance Corporation (FDIC). If a bank closes, the FDIC pays depositors directly from its insurance fund—not from the bank's remaining assets. This protection is automatic; you do not need to register or pay a fee.
Key Takeaways
- The FDIC insures up to $250,000 per depositor per bank per account category, meaning a checking account and a savings account at the same bank are insured separately.
- Joint accounts are insured up to $250,000 per owner, so a joint account with two people is covered for $500,000 total ($250,000 each).
- Money market accounts, certificates of deposit (CDs), and retirement accounts (IRAs) each count as separate categories and receive their own $250,000 coverage.
- The FDIC covers deposits only—not investment products like stocks, bonds, mutual funds, or brokerage accounts, even if held at a bank.
- When a bank fails, the FDIC typically transfers your account to another bank within one to three business days, and you keep full access to your money.
What the FDIC actually covers
The Federal Deposit Insurance Corporation is a government agency that insures deposits at member banks. Nearly all banks in the United States are FDIC members, including online banks. The insurance covers money you deposit in checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs).
Coverage is $250,000 per depositor per bank per account category. This means if you have $200,000 in a checking account and $200,000 in a savings account at the same bank, both are fully covered—they are separate categories. If you have $300,000 in a single checking account, only $250,000 is insured; the remaining $50,000 is not.
Joint accounts receive separate coverage. If you and another person own a joint account together, the account is insured for $250,000 in each person's name, for a total of $500,000. Each owner's share is insured separately, so the bank's failure does not reduce your coverage because of the other owner's balance.
Account types that have their own coverage limits
The FDIC divides accounts into categories, and each category gets its own $250,000 limit at each bank. This means you can have more than $250,000 insured at one bank if you spread it across different account types.
| Account Category | Coverage Limit Per Depositor | Example |
|---|---|---|
| Single accounts (checking, savings) | $250,000 | Your personal checking account |
| Joint accounts | $250,000 per owner | You and your spouse own one account together |
| Retirement accounts (IRAs, Roth IRAs) | $250,000 | Your traditional IRA at the bank |
| Certificates of deposit (CDs) | $250,000 | A CD you purchased at the bank |
| Money market deposit accounts | $250,000 | A money market account (not a money market fund) |
| Trust accounts | $250,000 per beneficiary | An account held in trust for your child |
If you have $250,000 in a checking account and $250,000 in a CD at the same bank, both are fully covered because they are different categories. However, if you have $250,000 in a checking account and $250,000 in a savings account at the same bank, only the first $250,000 across both accounts combined is covered—they are both single accounts and count toward the same limit.
What the FDIC does not cover
The FDIC insures deposits only. It does not cover investment products, even if you buy them through a bank. Stocks, bonds, mutual funds, exchange-traded funds (ETFs), and brokerage accounts are not FDIC-insured. If you buy these products at a bank, the bank is acting as a broker, and your investment is not protected by the FDIC.
Safe deposit boxes are also not covered. If you store valuables, documents, or cash in a safe deposit box at a bank, the FDIC does not insure the contents. The bank may carry insurance on the box itself, but you should check your rental agreement and consider separate coverage for high-value items.
Cryptocurrency held at a bank is not FDIC-insured. Some banks now offer cryptocurrency services, but these are not deposit accounts and fall outside FDIC protection. Money you send to a cryptocurrency exchange or wallet is not a bank deposit and receives no federal insurance.
What happens when a bank fails
Bank failures are rare in the United States. The FDIC maintains a fund from insurance premiums paid by member banks, and it uses this fund to pay depositors when a bank closes. The process typically works as follows: the FDIC is notified that a bank is insolvent, the bank is closed by regulators, and the FDIC takes control of the bank's assets.
In most cases, the FDIC arranges for another bank to assume the failed bank's deposits and accounts. This transfer usually happens over a weekend, and on Monday morning, you can access your account at the new bank using the same account number and debit card. You do not lose access to your money, and you do not have to do anything.
If no bank agrees to take over the deposits, the FDIC pays depositors directly. This process takes longer—typically two to three weeks—but you receive a check or electronic transfer for the full insured amount. Amounts over $250,000 per category are not paid unless the FDIC recovers funds from the bank's assets, which is uncommon.
How to check if your bank is FDIC-insured
You can search the FDIC's Bank Find tool on its website to confirm that your bank is a member and to see the current insurance coverage limits. The tool shows you the bank's name, location, and the specific coverage categories available at that institution. Most banks display the FDIC logo on their website and in their branches, but the Bank Find tool is the official source.
If you bank online, check the bank's website for FDIC membership information. Legitimate online banks are FDIC-insured and will clearly state this. If a bank does not mention FDIC insurance or claims to offer higher coverage limits than $250,000, it is not a member and your deposits are not protected.
Strategies for protecting deposits over $250,000
If you have more than $250,000 to deposit, you can spread your money across multiple banks to stay within the $250,000 limit at each one. Each bank is a separate insured entity, so $250,000 at Bank A and $250,000 at Bank B are both fully covered. You can also use different account categories at the same bank—for example, a checking account, a savings account, a CD, and a retirement account—to increase your coverage.
Some people use a service called IntraFi, which allows you to deposit money through a single interface and have it automatically distributed across multiple FDIC-insured banks in amounts under $250,000 at each one. This service is offered by some banks and financial institutions and can simplify managing deposits across multiple institutions.
If you have a spouse or family members, joint accounts and separate individual accounts at the same bank each receive their own $250,000 coverage. A joint account with your spouse is insured for $500,000 total ($250,000 per person), and your individual account at the same bank is insured for an additional $250,000.
Frequently Asked Questions
Does FDIC insurance cover my debit card if someone steals it?
No. FDIC insurance covers deposits in the event of bank failure only. If your debit card is stolen or used fraudulently, that is a separate issue handled under federal debit card fraud protections. Report the theft to your bank when ready; you are typically liable for no more than $50 of fraudulent charges if you report within two business days.
What if I have more than $250,000 and the bank fails?
Only the first $250,000 per account category is insured. The amount over $250,000 is not covered by the FDIC. You may recover some of this amount if the FDIC sells the bank's assets and has funds left over, but this is not may provide. To protect larger sums, spread your deposits across multiple banks or account categories.
Are online banks FDIC-insured?
Most online banks are FDIC-insured, but not all. Check the bank's website or use the FDIC's Bank Find tool to confirm membership. Online banks that are FDIC members offer the same $250,000 coverage as traditional banks. If an online bank is not FDIC-insured, your deposits are not protected.
If I move money to a different bank, do I lose my FDIC coverage?
No. FDIC coverage is tied to the bank where you hold the account, not to how long you have held it. When you move money to a new bank, that bank's FDIC coverage applies when ready. There is no waiting period or loss of protection during the transfer.
Does FDIC insurance cover money I owe the bank?
No. If you have a loan or credit card debt at the bank, the bank can offset your deposit against what you owe. FDIC insurance does not prevent the bank from using your deposit to pay down a debt you owe to that same bank. This is called a setoff right and is separate from deposit insurance.