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

The Federal Deposit Insurance Corporation (FDIC) protects your money in a savings account if the bank fails. The standard protection is $250,000 per person, per institution. That means if you have $250,000 or less in a savings account at one bank, all of it is covered. If you have $300,000, the FDIC covers $250,000 and you lose the remaining $50,000.

This protection applies only to FDIC-insured banks. Most banks are FDIC-insured, but not all — credit unions use a different system called the National Credit Union Administration (NCUA), which works the same way but is a separate program. You can check whether your bank is FDIC-insured by searching the FDIC's BankFind tool on their website, or by asking your bank directly.

The $250,000 limit has been in place since 2010. Before that, the limit was $100,000. It was raised temporarily during the 2008 financial crisis and made permanent in 2010.

Key Takeaways

  • The FDIC covers up to $250,000 per person per bank, so money above that amount is not protected if the bank fails.
  • The coverage limit applies separately to each account type you hold at the same bank — a savings account and a money market account are counted separately.
  • If you have more than $250,000 to protect, you can spread it across multiple FDIC-insured banks or use special account structures like joint accounts, which have their own $250,000 limit.
  • Credit unions are insured by the NCUA, not the FDIC, but the protection amount and rules are the same.
  • FDIC coverage does not protect you from fraud, theft, or mistakes — it only protects you if the bank itself becomes insolvent.

How the $250,000 limit breaks down across account types

The FDIC counts each account type separately, even if they are at the same bank. This means you can have $250,000 in a savings account and another $250,000 in a money market account at the same bank, and both are fully covered. The account types that have separate coverage are: single accounts (in your name alone), joint accounts, retirement accounts (IRAs), and accounts held in trust.

A single savings account and a single checking account at the same bank do not count separately — they are combined and covered together up to $250,000 total. The FDIC groups them as "deposits in the same right and capacity." If you have $150,000 in savings and $120,000 in checking at the same bank, you are covered for $250,000 total, and the remaining $20,000 is uninsured.

Retirement accounts (IRAs, SEP-IRAs, and similar) have their own $250,000 limit separate from your regular savings. A joint account also has its own $250,000 limit. If you and your spouse have a joint savings account with $250,000, that is fully covered. If you each also have individual savings accounts at the same bank with $250,000 each, all three accounts are fully covered because they are in different "capacities."

Protecting more than $250,000 across multiple banks

If you have more than $250,000 to protect, the simplest approach is to spread it across multiple FDIC-insured banks. Each bank's $250,000 limit is separate. If you have $500,000, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered.

You do not need to use different bank names or brands — you can use different branches of the same bank holding company and still get separate coverage. However, you must confirm this with the bank first. Some large holding companies (like Bank of America or Wells Fargo) operate multiple subsidiary banks, and deposits at different subsidiaries are covered separately. Deposits at different branches of the same bank are not covered separately.

The FDIC's BankFind tool shows you the exact institution name and certificate number for each bank. Use this to verify that you are depositing at truly separate FDIC-insured institutions. If you are unsure, contact the bank's customer service and ask whether your deposits would be covered separately under FDIC rules.

Joint accounts and coverage for multiple owners

A joint account — one owned by two or more people — has its own $250,000 coverage limit. If you and your spouse have a joint savings account with $250,000, the entire amount is covered. Each owner is insured separately up to $250,000, so if the account holds $500,000, only $250,000 is covered (the limit for the joint account itself, not per person).

If you and your spouse each have individual accounts at the same bank, those are covered separately. You could have $250,000 in your individual account, your spouse could have $250,000 in theirs, and you could have $250,000 in a joint account, and all three would be fully covered at the same bank because they are in different capacities.

The FDIC counts all owners equally. If three people own a joint account, the $250,000 limit still applies to the account as a whole, not per person. The coverage does not increase with the number of owners.

What FDIC coverage does and does not protect

FDIC insurance protects you only if the bank becomes insolvent — meaning it fails and cannot pay back deposits. It does not protect you from fraud, theft, or your own mistakes. If someone steals your debit card and drains your account, the FDIC will not reimburse you. If you send money to a scammer, the FDIC will not recover it. If you accidentally transfer money to the wrong account, the FDIC will not replace it.

FDIC coverage also does not explore to investments held at the bank, such as stocks, bonds, or mutual funds. If you buy a stock through your bank's brokerage service and the bank fails, the stock itself is not insured by the FDIC — it is held in your name and belongs to you regardless of the bank's status. However, if the bank holds cash from the sale of a stock, that cash is FDIC-insured up to $250,000.

Safe deposit boxes are not covered by FDIC insurance. If you store valuables, documents, or cash in a safe deposit box and the bank fails, the FDIC does not cover the contents. The bank may be liable under state law, but that is separate from FDIC protection.

NCUA coverage for credit unions

Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. The coverage limits and rules are identical to the FDIC: $250,000 per member, per credit union, per account type. If you have a savings account at a credit union with $250,000 or less, it is fully protected.

The NCUA's separate coverage categories work the same way as the FDIC's. A savings account and a share certificate (the credit union equivalent of a CD) at the same credit union are covered separately. A joint account has its own $250,000 limit. Retirement accounts have their own limit.

You can verify that a credit union is NCUA-insured by looking for the NCUA logo on their website or by searching the NCUA's credit union locator. Most federally chartered credit unions and many state-chartered ones are NCUA-insured. A small number of credit unions are insured by private insurers or state programs, which may have different limits.

What happens when a bank fails

When an FDIC-insured bank fails, the FDIC steps in as the receiver. The agency works to either sell the bank to another institution or liquidate its assets. Depositors with balances under $250,000 are paid in full, usually within a few business days. The FDIC maintains a reserve fund to cover these payouts.

In most cases, the FDIC arranges for another bank to take over the failed bank's deposits and operations. Customers often do not notice any interruption — they straightforward wake up to find their account is now at a different bank. The FDIC covers the cost of this transition, and your deposit remains protected.

If your balance exceeds $250,000, you become an unsecured creditor. The FDIC pays insured depositors first, then works through the failed bank's assets to pay uninsured amounts. This process can take months or years, and you may recover only a portion of the uninsured amount.

Frequently Asked Questions

Does FDIC coverage explore if I have money in multiple savings accounts at the same bank?

No. The FDIC combines all single savings accounts and single checking accounts at the same bank and covers them together up to $250,000 total. If you have two savings accounts at the same bank, they are treated as one account for coverage purposes. To protect more than $250,000, you must use different banks or different account types (like a joint account or retirement account).

If my bank is bought by another bank, am I still covered?

Yes. FDIC coverage follows your deposit, not the bank's name. If Bank A is acquired by Bank B, your deposit at the new Bank B is still FDIC-insured. The coverage limit resets if you had deposits at both banks before the merger — you would then have separate $250,000 limits at each institution during a transition period, though the FDIC's rules on this are specific to the merger circumstances.

Are savings bonds or CDs covered by FDIC insurance?

CDs (certificates of deposit) held at an FDIC-insured bank are covered up to $250,000, and they count separately from 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. Treasury bonds, bills, and notes are also not FDIC-insured but are backed by the government.

What if I have a savings account and a money market account at the same bank?

These are separate account types and are covered separately. You could have $250,000 in a savings account and $250,000 in a money market account at the same bank, and both would be fully covered. However, a savings account and a checking account are not separate for coverage purposes — they combine into one $250,000 limit.

Can I increase my FDIC coverage by adding a co-owner to my account?

No. A joint account has its own $250,000 limit, but adding a co-owner does not increase the coverage of that account. If you have $500,000 in a joint account, only $250,000 is covered. However, if you and a co-owner each have separate individual accounts at the same bank, those are covered separately — you could each have $250,000 covered.