Most savings accounts at banks are FDIC insured up to $250,000 per depositor, per bank, per account category
If your money sits in a savings account at a bank that holds an FDIC charter, that account is insured. The Federal Deposit Insurance Corporation covers deposits in savings accounts, money market accounts, and checking accounts the same way. The limit is $250,000 per person, per bank. If you have $300,000 in savings at one bank, the FDIC covers $250,000 and you lose the rest if the bank fails.
The word "per bank" matters. If you have $250,000 at Bank A and $250,000 at Bank B, both are fully covered because they are separate institutions. But $250,000 at Bank A and another $250,000 at Bank A's online division does not double your coverage—they are the same bank, and you get one $250,000 limit across both accounts combined.
Not every place that holds your money is a bank. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC, though the coverage limit is the same. Investment accounts, brokerage accounts, and money held in cryptocurrency platforms are not FDIC insured at all. If you are unsure whether your bank has FDIC coverage, search the FDIC's Bank Find tool on their website using your bank's name.
Key Takeaways
- FDIC insurance covers up to $250,000 per depositor at each bank, regardless of whether the account is a savings account, checking account, or money market account.
- The $250,000 limit applies per bank, not per account—if you have multiple accounts at the same bank, the total coverage across all of them is $250,000.
- Credit unions use NCUA insurance instead of FDIC insurance, but the coverage limit and mechanics are similar.
- Investment accounts, brokerage accounts, and non-bank financial services like cryptocurrency platforms do not carry FDIC insurance.
- You can verify whether a specific bank is FDIC insured by searching the FDIC's Bank Find tool with the bank's name.
How the $250,000 limit works across multiple accounts at one bank
The FDIC insures by account category, not by account number. This means if you have a savings account and a checking account at the same bank, they share one $250,000 limit. If you have $150,000 in savings and $120,000 in checking at the same bank, you have $270,000 total—but only $250,000 is covered. The FDIC would pay out $250,000 and you would lose $20,000.
There is one exception: a joint account gets its own $250,000 limit. If you and your spouse each have individual accounts totaling $250,000, and you also have a joint account with $250,000, all three are covered in full. The joint account is insured separately because the ownership is different. The FDIC counts it as $250,000 per person per account category, so a joint account with two owners is treated as $250,000 per owner.
Retirement accounts—IRAs, SEP-IRAs, and similar—also get their own $250,000 limit, separate from your regular savings and checking. This means you could have $250,000 in a regular savings account and another $250,000 in an IRA at the same bank, and both would be fully covered.
What happens if a bank fails and you have money over the limit
When a bank fails, the FDIC steps in and pays out covered deposits. If you have $300,000 in a savings account at a failed bank, you receive $250,000. The remaining $80,000 is lost unless the FDIC recovers assets from the bank's sale or liquidation—which rarely happens and usually takes years.
The FDIC does not transfer your money to another bank automatically. Instead, they issue you a check or deposit the insured amount into an account you designate. The process usually takes a few business days, though the FDIC aims to pay within one business day. During that time, you have no access to your money, which is why keeping some funds above the $250,000 limit at a single bank is a real risk.
Bank failures are rare in the United States. The FDIC has insured deposits since 1933, and the last major wave of bank failures was in the 1980s and early 1990s. Still, the insurance exists precisely because failure is possible, and it has happened to banks of all sizes in recent years.
Accounts and account types that are and are not covered
| Account Type | FDIC Covered | Notes |
|---|---|---|
| Savings account | Yes | Up to $250,000 per depositor per bank |
| Checking account | Yes | Shares the $250,000 limit with savings at the same bank |
| Money market account | Yes | Shares the $250,000 limit with savings and checking |
| Certificate of Deposit (CD) | Yes | Shares the $250,000 limit with other deposit accounts |
| Joint account | Yes | $250,000 per owner, so a joint account with two owners has $500,000 coverage |
| IRA or retirement account | Yes | Separate $250,000 limit from regular accounts |
| Brokerage or investment account | No | Protected by SIPC, not FDIC, with different limits |
| Cryptocurrency account | No | No federal insurance; depends on the platform's own protections |
| Money held in a safe deposit box | No | The box itself is not insured; contents depend on what is inside |
Online banks and FDIC coverage
Online banks are FDIC insured the same way brick-and-mortar banks are, as long as they hold an FDIC charter. Most major online banks—including Ally, Marcus, Discover Bank, and Charles Schwab Bank—are FDIC insured. The fact that you cannot walk into a physical branch does not change the insurance status.
The catch is that an online bank's parent company or brand name may not be the FDIC member. For example, Marcus is a brand owned by Goldman Sachs, but deposits are insured under Goldman Sachs Bank USA's FDIC charter. When you search the FDIC Bank Find tool, you need to search for the actual bank name, not the brand you use. The bank's website or account statements should tell you the legal entity name.
If you use multiple online banks, each one is a separate institution for FDIC purposes. You could have $250,000 at Ally, $250,000 at Marcus, and $250,000 at Discover Bank, and all three amounts would be fully covered because they are three different banks.
How to verify FDIC coverage for your specific bank
The FDIC maintains a searchable database called Bank Find on their website. You enter your bank's name, and the tool tells you whether it is FDIC insured, what its charter number is, and which FDIC region covers it. This is the only reliable way to confirm coverage for a specific institution.
If you cannot find your bank in Bank Find, it is not FDIC insured. This does not mean it is unsafe—it may be a credit union (insured by NCUA instead) or a legitimate non-bank financial institution. But it does mean your deposits are not covered by federal deposit insurance.
Some banks advertise FDIC insurance in their marketing, but the legal requirement is that they disclose it in account agreements and on their website. If a bank does not mention FDIC insurance anywhere, ask directly before opening an account. The bank's customer service should be able to tell you the FDIC member bank name and charter number in seconds.
Strategies for protecting money over $250,000
If you have more than $250,000 to keep safe, spreading it across multiple banks is the standard approach. You could put $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C, and all three amounts would be fully insured. This requires managing multiple accounts and multiple login credentials, but it is straightforward.
Joint accounts offer another layer. If you and a spouse each have $250,000 in individual accounts and $250,000 in a joint account at the same bank, you have $750,000 covered. The joint account is insured separately because the ownership structure is different.
Retirement accounts also get their own limit. If you have an IRA with $250,000 and a regular savings account with $250,000 at the same bank, both are fully covered. This is useful if you are saving for retirement and also building an emergency fund.
Some people use a combination: $250,000 in a savings account at Bank A, $250,000 in a joint account at Bank A (with a spouse), $250,000 in an IRA at Bank B, and so on. The key is understanding that each account category and each bank is a separate $250,000 bucket.
Frequently Asked Questions
Does FDIC insurance cover my money if the bank is hacked or my account is compromised?
No. FDIC insurance only covers bank failure, not fraud or theft. If someone steals your login credentials and drains your account, that is a separate issue handled by the bank's fraud department and potentially law enforcement. Banks are required to reimburse you for unauthorized transactions under federal law, but that is not FDIC insurance—it is a different protection.
If I move my money to a different bank, does the FDIC coverage follow it?
No. FDIC coverage is tied to the bank where the money sits. If you move $300,000 from Bank A to Bank B, you now have $300,000 at Bank B (covered up to $250,000) instead of at Bank A. The coverage does not transfer; it applies based on where your account is at the time of the bank failure.
Are savings bonds or Treasury bills held at a bank FDIC insured?
No. If your bank sells you a savings bond or Treasury bill and holds it for you, that investment is not FDIC insured. The bank itself is insured, but the securities are not. If the bank fails, your bonds and bills are returned to you, but they are not covered by the $250,000 FDIC limit.
What if I have accounts at two branches of the same bank?
They are the same bank for FDIC purposes. Two branches of Bank of America are one bank, not two. Your coverage is $250,000 total across all accounts at all branches of that bank combined, not $250,000 per branch.
Does FDIC insurance cover money I owe the bank, like overdraft fees?
No. FDIC insurance covers deposits you own. If you owe the bank money—through overdraft fees, loan balances, or other debts—the bank can offset your insured deposits to cover what you owe. The insurance does not protect you from the bank collecting a debt you legitimately owe.