The count keeps changing, but there are roughly 4,000 to 5,000 banks in the United States

The exact number shifts month to month because banks merge, fail, or open regularly. As of 2024, the Federal Deposit Insurance Corporation (FDIC) counts somewhere between 4,000 and 5,000 insured depository institutions—the official term for banks and thrift institutions that hold deposits and are covered by federal insurance. The number has been falling for two decades as consolidation accelerates.

What makes the count slippery is that "bank" means different things depending on who is counting. The FDIC tracks banks that hold deposits. The Federal Reserve tracks banks it supervises. Credit unions—which operate like banks but are structured differently—are counted separately by the National Credit Union Administration. When someone asks "how many banks," they usually mean FDIC-insured institutions, which is the number that matters if you want to know where your deposits are protected.

The decline from roughly 14,000 banks in 1985 to today's count reflects decades of consolidation. Mergers happen constantly. Small regional banks get absorbed into larger ones. A few fail each year, though failures are rare now. Meanwhile, new banks open slowly—the regulatory burden and capital requirements are high enough that starting a bank from scratch is uncommon.

Key Takeaways

  • The FDIC insures roughly 4,000 to 5,000 banks and thrift institutions in the United States, and this number changes as banks merge or fail.
  • The count has fallen from over 14,000 banks in 1985 because consolidation has accelerated and few new banks open.
  • The number varies depending on whether you count only commercial banks, include thrift institutions, or count credit unions separately.
  • You can look up any specific bank's FDIC insurance status and coverage limits on the FDIC's BankFind tool.

Why the number has fallen so dramatically

Consolidation is the main driver. When two banks merge, the count goes down by one. This has been happening steadily since the 1980s, when interstate banking restrictions were lifted and larger banks could expand across state lines. Once that became possible, regional banks faced pressure to grow or be acquired. Many chose to be acquired.

The 2008 financial crisis accelerated this trend. Smaller banks that survived the crisis faced higher regulatory costs and stricter capital requirements. The expense of compliance—legal, audit, technology—became harder to justify for a small institution. Larger banks could spread these costs across millions of customers. Smaller ones could not.

New banks open rarely. Starting a bank requires federal or state approval, substantial capital, a board of directors, and the ability to attract deposits in a market where large national banks already operate. The regulatory environment makes it possible but not straightforward. As a result, most growth in the banking sector comes from existing institutions expanding, not from new entrants.

What counts as a bank for FDIC purposes

The FDIC insures commercial banks and savings institutions (also called thrift institutions or savings banks). Both take deposits and make loans. The main difference is historical—thrifts were originally created to fund home mortgages, while commercial banks handled business lending. That distinction has blurred, and today both do similar work.

Credit unions are not counted in the FDIC total. They are insured separately by the National Credit Union Administration (NCUA) and operate as member-owned cooperatives rather than shareholder-owned corporations. There are roughly 4,800 credit unions in the United States, so if you add them to the FDIC count, the total number of deposit-taking institutions is closer to 9,000.

Online banks and neobanks (digital-only banks) are counted in the FDIC total if they hold deposits directly. Some are chartered as banks themselves. Others partner with a traditional bank that holds the deposits and carries the FDIC insurance. Either way, if your money is in an FDIC-insured account, you have the same protection whether you bank in person or through an app.

How to verify a bank's FDIC insurance status

The FDIC publishes a searchable database called BankFind at bankfind.fdic.gov. You can search by bank name, city, or state and see whether that institution is FDIC-insured, what its insurance coverage limits are, and which FDIC region supervises it. This is useful if you are considering opening an account somewhere unfamiliar or if you want to confirm that a bank you already use is actually insured.

The search results show the bank's charter type (national, state, or savings bank), the date it was established, and its most recent financial data. You can also see if the bank has any branches and where they are located. This information is public and updated regularly.

The difference between national and state-chartered banks

Banks can be chartered at the federal level (by the Office of the Comptroller of the Currency, or OCC) or at the state level (by a state banking regulator). A national bank has "National" or "N.A." in its name and is supervised by the OCC. A state-chartered bank is supervised by its state's banking authority and also by the Federal Reserve if it is a member of the Federal Reserve System.

From a customer's perspective, the charter type matters less than FDIC insurance. Both national and state-chartered banks can be FDIC-insured. The charter determines which regulator examines the bank's books and enforces rules, but it does not change your deposit protection. If a bank fails, the FDIC covers your deposits up to $250,000 per account category, regardless of whether it was chartered nationally or by a state.

Why consolidation is likely to continue

The trend toward fewer, larger banks is expected to continue. Regulatory costs keep rising. Technology investment—building find digital banking systems, meeting cybersecurity standards, handling fraud detection—requires capital that small banks struggle to justify. Larger banks can invest in these systems and spread the cost across a much larger customer base.

At the same time, community banks and regional banks still exist and still serve customers who prefer local relationships or who need lending that national banks do not prioritize. The number of these smaller institutions will probably keep declining, but they are unlikely to disappear entirely. There is still demand for banking services tailored to local markets.

Frequently Asked Questions

Is my money safe in a bank that is not FDIC-insured?

No. If a non-FDIC-insured bank fails, you have no federal protection for your deposits. Most legitimate banks are FDIC-insured, but some institutions that call themselves banks are not. Always check BankFind before opening an account.

What happens to my account if my bank fails?

The FDIC takes over the bank and transfers your deposits to another FDIC-insured bank, usually within a few business days. You keep your money up to $250,000 per account category. Amounts over that limit are not protected.

Are online banks as safe as traditional banks?

Online banks are as safe as traditional banks if they are FDIC-insured, which most are. The FDIC insurance covers deposits held at online banks the same way it covers deposits at brick-and-mortar banks. Check BankFind to confirm the bank's insurance status.

Why do some banks fail if the FDIC is insuring them?

FDIC insurance protects your deposits, not the bank itself. Banks fail when they make bad loans, face fraud, or lose customer confidence. The FDIC does not prevent failures—it protects depositors when they happen.

Can I find out how many banks are in my state?

Yes. Use BankFind and filter by state. You can see every FDIC-insured bank operating in that state, how many branches each has, and their charter type.