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

The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects your money if your bank fails. If you have a savings account at an FDIC-insured bank and that bank closes, the FDIC will reimburse you for the money you lost — up to $250,000 per account owner, per bank.

This protection is automatic. You do not need to sign up for it, pay for it, or do anything special. If your bank is FDIC-insured, your savings account is covered the moment you open it.

The $250,000 limit is per depositor, per bank. That means if you have $250,000 in savings at Bank A and $250,000 in savings at Bank B, both amounts are fully protected. But if you have $300,000 at a single bank, only $250,000 is covered — the extra $50,000 is not.

Key Takeaways

  • The FDIC protects up to $250,000 per person, per bank, so money spread across different banks gets more protection than money at one bank.
  • Joint accounts (accounts owned by two people together) are insured separately from individual accounts, so a joint account gets its own $250,000 coverage.
  • Savings accounts, checking accounts, and money market accounts are all covered by the same $250,000 limit at each bank.
  • You can check whether your bank is FDIC-insured by searching the FDIC's bank database on their website or asking your bank directly.
  • Credit unions use a similar system called NCUA insurance, which also covers up to $250,000 per member, per credit union.

How the $250,000 limit works across multiple accounts

The FDIC counts all your accounts at the same bank together when deciding how much is protected. If you have a savings account with $150,000 and a checking account with $120,000 at the same bank, the FDIC sees $270,000 total. Only $250,000 of that is protected — the extra $20,000 is not.

The exception is a joint account, which is an account owned by two people together. A joint account gets its own $250,000 of protection, separate from each owner's individual accounts. So if you and your spouse each have a savings account with $200,000, and you also have a joint savings account with $200,000, all three accounts are fully protected: $200,000 + $200,000 + $200,000.

If you have more than $250,000 to keep safe, opening accounts at different FDIC-insured banks is the way to spread the protection. Each bank is insured separately, so $250,000 at Bank A and $250,000 at Bank B are both fully covered.

Which accounts are covered and which are not

Savings accounts, checking accounts, and money market accounts are all covered by FDIC insurance. So is a certificate of deposit (CD), which is a savings product where you agree to leave money untouched for a set time period in exchange for a higher interest rate.

Some accounts are not covered. Safe deposit boxes — the locked boxes banks rent you to store documents or valuables — are not insured by the FDIC. Neither are investment accounts, stocks, bonds, or mutual funds held at a bank. If you buy stocks through your bank's brokerage service, those are not FDIC-protected.

If you are unsure whether a specific account type is covered, ask your bank directly. They can tell you whether each account you hold is FDIC-insured.

How to verify your bank is FDIC-insured

Most banks in the United States are FDIC-insured, but not all. Before you open an account, you can check the FDIC's Bank Find tool on their website (fdic.gov). Type in your bank's name and location, and the tool will tell you whether it is insured and show you the exact coverage limits.

You can also ask the bank directly. If a bank is FDIC-insured, it is required to display the FDIC logo and a notice about insurance coverage in the lobby and on its website. If you do not see this notice, ask a staff member whether the bank is FDIC-insured before you open an account.

Some online banks are FDIC-insured even though they have no physical branches. The FDIC website will show you whether an online bank is covered, so you can compare protection across different banks before choosing where to save.

Credit unions and NCUA insurance

If you bank at a credit union instead of a traditional bank, your money is protected by the National Credit Union Administration (NCUA), not the FDIC. The coverage limit is the same: $250,000 per member, per credit union.

Like FDIC insurance, NCUA coverage is automatic and free. You do not need to do anything to set up it. If your credit union fails, the NCUA will reimburse you up to $250,000 of your deposits.

You can check whether your credit union is NCUA-insured by visiting the NCUA's website or asking the credit union directly. Most federally chartered credit unions and many state-chartered credit unions are NCUA-insured.

What happens if your bank fails

Bank failures are rare in the United States, but they do happen. If your bank closes, the FDIC steps in and reimburses depositors. The process usually takes a few days to a few weeks, depending on how complex your account is.

The FDIC will contact you with information about your claim. You do not need to file paperwork or take action — the FDIC handles the reimbursement automatically. If your account is under $250,000, you will receive your full balance. If it is over $250,000, you will receive $250,000 and lose the amount above that.

This is why the $250,000 limit matters: it is the maximum the FDIC will pay out per person, per bank. Spreading money across multiple banks ensures that all of it is protected, even if one bank fails.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is protected?

Only $250,000 is protected by the FDIC. The remaining $50,000 is not covered. To protect all $300,000, you would need to move $50,000 to a savings account at a different FDIC-insured bank.

Does FDIC insurance cover money I lose to fraud or theft?

No. FDIC insurance only covers deposits if the bank itself fails. If someone steals your debit card or hacks your account, that is a separate issue handled by your bank's fraud protection policies, not by FDIC insurance. Contact your bank when ready if you suspect fraud.

Are online banks FDIC-insured?

Many online banks are FDIC-insured, but not all. Use the FDIC's Bank Find tool on fdic.gov to check whether a specific online bank is covered before you open an account. The tool will show you the exact coverage limits.

If I have a joint account with my spouse, do we each get $250,000 of protection?

Yes. A joint account is insured separately from individual accounts. If you and your spouse each have individual savings accounts with $250,000, and you also have a joint account with $250,000, all three accounts are fully protected — $750,000 total.

What if my bank is not FDIC-insured?

If your bank is not FDIC-insured, your deposits are not protected if the bank fails. You should move your money to an FDIC-insured bank. Use the FDIC's Bank Find tool to locate insured banks in your area.