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 coverage limit is $250,000 per person, per bank, per account category. If you have $250,000 or less in a savings account at one FDIC-insured bank, all of it is protected. If you have more than $250,000 at that same bank, the amount over $250,000 is not covered.
This protection applies only to banks that display the FDIC logo or are listed on the FDIC's bank search tool. Credit unions use a similar system called the National Credit Union Administration (NCUA), which also covers up to $250,000 per person per institution. Online banks, regional banks, and large national banks are all may be able to access for FDIC coverage as long as they are federally insured.
The $250,000 limit has been in place since 2010. It was temporarily raised to $250,000 during the 2008 financial crisis and made permanent in 2010. This amount does not change based on market conditions or the health of the bank.
Key Takeaways
- FDIC insurance covers up to $250,000 per depositor, per bank, per account type, so money over that amount at a single bank is unprotected.
- You can have multiple accounts at the same bank and receive separate coverage for each type — a savings account, money market account, and checking account each get their own $250,000 limit.
- Splitting money across different banks means each bank's $250,000 limit applies separately, so $250,000 at Bank A and $250,000 at Bank B are both fully protected.
- Joint accounts are covered separately from individual accounts, so a joint savings account with your spouse receives its own $250,000 protection in addition to your individual account coverage.
- You can verify whether a bank is FDIC-insured by searching the FDIC's Bank Find tool on their website or looking for the FDIC logo on the bank's materials.
How the $250,000 limit works across multiple accounts
The coverage limit applies per account type, not per account. This means you can have a savings account, a money market account, and a checking account at the same bank, and each one receives its own $250,000 protection. If you have $250,000 in savings, $250,000 in a money market account, and $250,000 in checking at the same bank, all $750,000 is covered.
However, if you have two separate savings accounts at the same bank, they are combined for insurance purposes. The FDIC adds them together and applies the $250,000 limit to the total. So two savings accounts with $150,000 each at the same bank means $300,000 total, and only $250,000 is protected.
The account types that receive separate coverage are: individual accounts, joint accounts, retirement accounts (IRAs), trust accounts, and accounts held in the name of a deceased person's estate. Each category is insured separately, even at the same bank.
Spreading money across banks to increase protection
If you have more than $250,000 to keep safe, you can open accounts at different FDIC-insured banks. Each bank's $250,000 limit applies independently. So $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C means all $750,000 is protected.
This strategy works because the FDIC's coverage is per bank, not per person. You are the same depositor, but each institution is a separate entity with its own insurance pool. The banks do not need to know about each other, and you do not need to report the arrangement to anyone.
Online banks and brick-and-mortar banks count as separate institutions for this purpose. If you have $250,000 at a regional bank and $250,000 at an online bank, both are covered. The FDIC does not care whether the bank has physical branches or operates only online.
Joint accounts and retirement accounts have their own coverage
A joint savings account — one held in the names of two or more people — receives separate FDIC coverage from an individual account. If you have a joint account with your spouse at Bank A, that account is covered up to $250,000. Your individual savings account at the same bank is also covered up to $250,000. The two accounts do not reduce each other's protection.
Retirement accounts, including traditional IRAs and Roth IRAs, are also covered separately. An IRA at Bank A is protected up to $250,000 independently of a savings account at the same bank. This means you can have $250,000 in an IRA and $250,000 in a savings account at the same bank, and both are fully protected.
Trust accounts receive their own coverage as well, though the rules are more complex. A revocable living trust account is typically covered up to $250,000 per beneficiary, up to a maximum of five beneficiaries. If you are unsure whether a trust account you hold is covered, the FDIC's website has a coverage calculator that walks through the specific rules.
What happens if a bank fails
If an FDIC-insured bank closes, the FDIC steps in and either arranges for another bank to take over the accounts or pays depositors directly. In most cases, the FDIC finds another bank to assume the deposits within a few days. You keep your account number and online access, and the transition is usually seamless.
If no bank takes over the account, the FDIC mails a check to you for the insured amount (up to $250,000). This process typically takes a few weeks. The FDIC has a track record of paying out within 21 days, though it can take longer if the bank's records are damaged or incomplete.
Money over the $250,000 limit becomes a claim against the failed bank's assets. You may recover some of it, but there is no may provide. In recent bank failures, uninsured depositors have recovered varying amounts depending on how much the bank's assets sold for.
Verifying your bank is FDIC-insured
You can check whether a bank is FDIC-insured by visiting the FDIC's Bank Find tool on their website (fdic.gov). Search by the bank's name or location. The tool shows whether the bank is insured, which FDIC region covers it, and the exact coverage limits for your type of account.
Most traditional banks are FDIC-insured, but not all. Some credit unions are insured by the NCUA instead. Online banks, even large ones, are FDIC-insured if they are chartered as banks. The FDIC logo on a bank's website or marketing materials is a sign of coverage, but the Bank Find tool is the definitive source.
If a bank is not FDIC-insured, your deposits have no federal protection. This is rare for mainstream banks, but it does happen with some smaller institutions or non-bank financial companies. Before opening an account, confirm the bank appears in the FDIC's database.
Coverage limits for different account types
| Account Type | Coverage Limit | Notes |
|---|---|---|
| Individual savings or checking | $250,000 | Per person, per bank. Multiple accounts of the same type are combined. |
| Joint account | $250,000 | Separate from individual accounts. Each owner's share is insured up to $250,000. |
| Traditional or Roth IRA | $250,000 | Separate from other account types at the same bank. |
| Money market account | $250,000 | Separate category from savings accounts. |
| Revocable trust account | $250,000 per beneficiary | Up to five beneficiaries. More complex rules explore for irrevocable trusts. |
Frequently Asked Questions
What if I have more than $250,000 and want it all protected?
Open accounts at different FDIC-insured banks. Each bank's $250,000 limit applies separately. You can also use different account types at the same bank — a savings account, money market account, and IRA each get their own $250,000 coverage. For very large amounts, a combination of both strategies works.
Does FDIC insurance cover money market accounts the same way as savings accounts?
Yes. Money market accounts are a separate category from savings accounts, so they receive their own $250,000 limit at the same bank. If you have $250,000 in savings and $250,000 in a money market account at the same bank, both are fully protected.
If my spouse and I have a joint account, is each of us covered for $250,000?
No. A joint account is covered up to $250,000 total, not per person. If you have $250,000 in a joint account, the entire amount is protected. If you have $300,000 in a joint account, only $250,000 is covered. However, your individual account at the same bank is covered separately.
Are online banks FDIC-insured?
Most online banks are FDIC-insured if they are chartered as banks. Check the FDIC's Bank Find tool to confirm. Online banks count as separate institutions from brick-and-mortar banks, so you can spread money across both types and receive separate $250,000 coverage at each.
What if the bank fails while I'm waiting for a withdrawal?
The FDIC's coverage applies to the balance in your account on the day the bank closes, not to pending transactions. If you requested a withdrawal but it had not cleared before the bank failed, the money in your account is insured, but the withdrawal request is cancelled.