FDIC insurance covers you per person, not per account

The FDIC insures each depositor up to $250,000 per bank, regardless of how many checking accounts you have at that same bank. If you have two checking accounts at the same bank, the FDIC adds them together and insures the combined total up to $250,000. You do not get $250,000 per account — you get $250,000 per person per bank.

This matters because many people think opening a second checking account at the same bank gives them more insurance coverage. It does not. The FDIC counts all your accounts at one bank as a single pile of money for insurance purposes.

The one exception is if the accounts are in different ownership categories — for example, one account in your name alone and one account in your name jointly with someone else. Those are insured separately. But two checking accounts both in your name alone at the same bank share the same $250,000 limit.

Key Takeaways

  • The FDIC insures each person up to $250,000 per bank, not per account, so multiple checking accounts at the same bank do not increase your coverage.
  • If you have $150,000 in one checking account and $120,000 in another checking account at the same bank, only $250,000 total is insured and $20,000 is uninsured.
  • Accounts in different ownership categories — such as an account in your name alone versus a joint account with your spouse — are insured separately and each gets the full $250,000 limit.
  • To insure more than $250,000, you must split your money across different banks, because the $250,000 limit applies per person per bank, not per bank overall.

How the FDIC counts multiple accounts at one bank

When you have more than one checking account at the same bank, the FDIC treats them as one account for insurance purposes. The bank's name is what matters, not the account number or the account type. If you have a checking account and a savings account at the same bank, both are added together under the same $250,000 limit.

The FDIC calls this the "per depositor, per insured bank" rule. You are the depositor. The bank is the insured bank. Everything you own at that one bank gets pooled together.

This applies even if the accounts serve different purposes or have different features. A high-yield checking account and a regular checking account at the same bank are both counted toward your single $250,000 limit at that bank.

When accounts are insured separately

The FDIC does insure some accounts separately, even at the same bank. The key is ownership category — the legal structure of who owns the account.

An account in your name alone is one category. A joint account with your spouse is a different category. A payable-on-death account (where you name a beneficiary) is a third category. Each category gets its own $250,000 limit at the same bank.

For example: you could have $250,000 in a checking account in your name alone, plus $250,000 in a joint checking account with your spouse at the same bank, and both amounts would be fully insured. That is $500,000 total insured at one bank, but in two separate ownership categories.

Retirement accounts (IRAs, 401(k)s held at a bank) are also a separate category and get their own $250,000 limit. Trust accounts are another category. The FDIC website lists all the categories, but the most common ones for everyday checking are individual, joint, and payable-on-death.

What happens if you exceed $250,000 at one bank

If you have $300,000 in checking accounts at the same bank, the FDIC insures $250,000 and the remaining $50,000 is uninsured. If the bank fails, you lose that $50,000.

This is why people with large amounts of money often use multiple banks. If you have $500,000 to keep safe, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully insured.

The bank does not have to be a different company — it has to be a different legal entity. Two branches of the same bank are the same bank for FDIC purposes. But Bank of America and Wells Fargo are different banks, so money at each one is insured separately.

How to check your coverage at your bank

The FDIC provides a tool called the FDIC Coverage Calculator on its website. You enter your bank name, the accounts you have there, and who owns each one, and the calculator tells you how much is insured and how much is not.

You can also call your bank and ask directly. The bank's customer service team can tell you whether your accounts are in the same ownership category or different ones, and how much of your money is covered.

If you are close to the $250,000 limit and want to keep all your money insured, moving some to a different bank is straightforward. You open a new account at another FDIC-insured bank and transfer the money. The transfer itself does not affect your insurance — only where the money sits at the end of the day.

Joint accounts and FDIC coverage

A joint account is insured separately from an individual account, even at the same bank. If you and your spouse have a joint checking account with $250,000, that $250,000 is insured. If you also have a separate checking account in your name alone with $250,000 at the same bank, that $250,000 is also insured. The bank is the same, but the ownership categories are different.

However, the FDIC insures the joint account as a unit, not per person. If the joint account has $250,000 and the bank fails, you and your spouse together receive $250,000 — not $250,000 each. You would need to work out how to split that money between yourselves.

If you and your spouse each have separate individual accounts at the same bank, those are two different ownership categories and each gets $250,000 of coverage. That gives you $500,000 total insured at one bank.

Payable-on-death accounts and beneficiaries

A payable-on-death account (sometimes called a POD account) is one where you name a beneficiary — usually a family member — to receive the money if you die. The FDIC insures payable-on-death accounts separately from your individual accounts.

If you have a payable-on-death checking account with $250,000 and an individual checking account with $250,000 at the same bank, both amounts are insured. The ownership categories are different.

The beneficiary you name does not affect the insurance limit. Whether you name one beneficiary or five, the account still gets one $250,000 limit. The FDIC does not split the coverage among multiple beneficiaries.

Frequently Asked Questions

If I have $300,000 at one bank, how much is insured?

The FDIC insures $250,000 and the remaining $50,000 is uninsured. The limit is per person per bank, not per account. If all $300,000 is in accounts under your name alone, only $250,000 is protected if the bank fails.

Can I get more coverage by opening accounts at different branches of the same bank?

No. All branches of the same bank are treated as one bank for FDIC purposes. Opening a checking account at the downtown branch and another at the airport branch does not increase your coverage — they are both counted toward your single $250,000 limit.

Is my joint account insured separately from my individual account?

Yes. A joint account is a different ownership category, so it gets its own $250,000 limit at the same bank. If you have $250,000 in a joint account and $250,000 in an individual account at the same bank, both amounts are insured.

What if my spouse and I each have our own individual accounts at the same bank?

Each of you is a separate depositor, so each account gets its own $250,000 limit. You would have $500,000 total insured at one bank — $250,000 for you and $250,000 for your spouse.

Do money market accounts and savings accounts count toward my checking account coverage?

Yes. All deposit accounts you own at the same bank in the same ownership category are added together and share the $250,000 limit. A checking account, savings account, and money market account all in your name alone at the same bank are insured as one combined total up to $250,000.