Yes, savings accounts are covered by FDIC insurance, up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) protects money you keep in a savings account at an FDIC-insured bank. If the bank fails, the FDIC pays you back up to $250,000. This is true whether you have $100 or $249,999 in the account. The coverage is automatic — you do not need to sign up or pay a fee.

The $250,000 limit applies to each depositor at each bank separately. If you have $150,000 in savings at Bank A and $150,000 in savings at Bank B, both amounts are fully covered because they are at different banks. But if you have $300,000 in one savings account at one bank, only $250,000 is covered.

FDIC coverage exists because banks lend out the money you deposit. If too many people withdraw at once, or if the bank's loans go bad, the bank can run out of cash. The FDIC insurance means you are protected from that risk — your money is backed by the federal government, not just by the bank's own reserves.

Key Takeaways

  • The FDIC covers up to $250,000 per person per bank in a savings account, and this coverage is automatic with no fee.
  • The $250,000 limit resets for each different bank you use, so spreading money across banks increases your total coverage.
  • Coverage applies only to deposits at banks that display the FDIC logo or are listed on the FDIC's official bank search tool.
  • Joint accounts, retirement accounts, and trust accounts have separate $250,000 limits, so the same person can have more than $250,000 covered across different account types at one bank.

How to check if your bank is FDIC-insured

Not every bank is FDIC-insured. Credit unions use a different insurance system called the National Credit Union Administration (NCUA). Online banks, traditional banks, and community banks can all be FDIC-insured, but you need to verify.

The easiest way is to look for the FDIC logo on the bank's website or on your debit card. The logo is a blue rectangle with white letters. If you do not see it, use the FDIC's Bank Search tool on their website (fdic.gov). Type in your bank's name, and the tool will tell you whether it is insured and what the coverage limits are for your specific account type.

If your bank is not FDIC-insured, your deposits have no federal protection. This is rare for traditional banks but common for some online investment platforms and payment apps that are not banks.

What types of savings accounts are covered

Standard savings accounts are covered. So are money market accounts, certificates of deposit (CDs), and checking accounts. The $250,000 limit applies to the total across all these account types at one bank — they are not separate limits.

For example, if you have $150,000 in a savings account and $120,000 in a CD at the same bank, your total coverage is $250,000. The extra $20,000 in the CD is not covered. But if you move the CD to a different FDIC-insured bank, both amounts become fully covered.

Certain account structures get their own $250,000 limit. A joint account (where two people own it together) has a separate $250,000 limit from each owner's individual account. A retirement account like an IRA has its own $250,000 limit. A trust account has its own limit. This means one person can have more than $250,000 covered at a single bank if the money is in different account types.

What happens to your money if the bank fails

Bank failures are rare in the United States. When one does fail, the FDIC steps in quickly. Usually, another bank buys the failed bank's deposits and customers are moved over automatically. You keep your account number, your debit card works, and nothing changes from your perspective except the bank's name.

If no bank buys the deposits, the FDIC pays you directly. This takes longer — usually a few weeks — but you still receive your money up to the $250,000 limit. The FDIC has a claims process, and they will contact you with instructions.

Money above the $250,000 limit is not protected. If you have $300,000 in one savings account and the bank fails, you lose $50,000. This is why people with large amounts of money sometimes split deposits across multiple banks.

How joint accounts and special accounts change your coverage

A joint account is one where two or more people have equal ownership and access. The FDIC covers each owner's share separately, up to $250,000 per owner. If you and your spouse have a joint savings account with $400,000, the FDIC covers $250,000 of your share and $250,000 of your spouse's share — the full amount is protected.

Retirement accounts like traditional IRAs and Roth IRAs have their own $250,000 limit separate from your regular savings account. If you have $250,000 in a savings account and $250,000 in an IRA at the same bank, both are fully covered.

Trust accounts (accounts held in trust for a beneficiary) also have separate coverage. The rules are more complex for trusts, and the coverage depends on how the trust is structured and how many beneficiaries it names. If you have a trust account, ask your bank or the FDIC directly about your specific coverage.

What is not covered by FDIC insurance

FDIC insurance covers deposits only — the money you put in the bank. It does not cover investments like stocks, bonds, mutual funds, or brokerage accounts, even if you buy them through your bank. It does not cover safe deposit boxes or items stored in them. It does not cover money market funds (which are different from money market accounts).

If your bank offers investment services and you buy stocks or mutual funds, those are not FDIC-covered. The bank may offer other insurance or protections through a brokerage partner, but that is separate from FDIC coverage.

Cryptocurrency held at a bank is not covered by the FDIC. Some banks now offer cryptocurrency services, but those assets fall outside the FDIC's scope.

Strategies for protecting more than $250,000

If you have more than $250,000 in savings, you can spread it across multiple FDIC-insured banks. Each bank covers up to $250,000 per depositor, so $500,000 across two banks is fully protected. Some people use a service that automatically moves money between banks to keep each account under the limit, though this is usually only necessary for very large amounts.

You can also use different account types at the same bank. A joint account with your spouse, plus your individual account, plus a retirement account, can each hold $250,000 at one bank. This requires careful tracking, but it is a legal way to increase coverage without moving to multiple banks.

The FDIC website has a coverage calculator that shows you exactly how much of your money is covered based on your account structure. Using it takes a few minutes and removes the guesswork.

Frequently Asked Questions

Does FDIC coverage explore to money I transfer out of the bank?

No. FDIC coverage applies only to money that is actually in the bank account. Once you withdraw it, it is no longer covered. If you keep large amounts of cash at home, that money has no federal protection.

If I have $250,000 in savings and the bank fails, do I get interest too?

You get the principal amount up to $250,000. Interest that has been added to the account before the failure is covered as part of that $250,000. Interest that would have been earned after the failure is not paid.

Does FDIC coverage change if I move my money between accounts at the same bank?

No. Moving money between a savings account and a checking account at the same bank does not change your coverage — they share the same $250,000 limit. But moving money to a different bank creates a separate $250,000 limit at that bank.

What if my bank says it is FDIC-insured but it is not listed on the FDIC website?

Check the FDIC Bank Search tool directly. If your bank does not appear there, it is not FDIC-insured, and you should ask why. Some banks claim to be insured when they are not, so verify through the official tool rather than trusting the bank's word alone.

Are savings bonds covered by FDIC insurance?

No. Savings bonds issued by the U.S. Treasury are backed by the federal government directly, but they are not FDIC-covered. They are a separate type of investment with their own protections.