What the FDIC Actually Covers in Your Savings Account

Yes, the FDIC protects most savings accounts, but only up to $250,000 per depositor per bank

The Federal Deposit Insurance Corporation (FDIC) covers deposits you hold at member banks if the bank fails. For a savings account, that protection is $250,000 per person, per institution. If you have $180,000 in a savings account at Bank A and it closes, you get all $180,000 back. If you have $300,000 in a savings account at the same bank and it fails, you get $250,000 back and lose $50,000.

The limit resets if you move to a different bank. You can have $250,000 covered at Bank A and another $250,000 covered at Bank B in separate savings accounts, and both are fully protected. The FDIC does not care how many accounts you have across different banks — each institution's coverage is separate.

Not every bank is FDIC-insured. Most traditional banks are, but some online banks, credit unions, and investment firms are not. You can check whether a specific bank is covered by searching the FDIC's BankFind tool on their website, which lists every insured institution.

Key Takeaways

The FDIC covers up to $250,000 per depositor per bank, so amounts above that are not protected if the bank fails.
The $250,000 limit applies to your total deposits at one bank across all account types combined, not per account.
You can hold $250,000 at multiple different banks and have each amount fully covered, because the limit is per institution.
Credit unions are insured by the NCUA, not the FDIC, and have the same $250,000 per-member limit under different rules.
You can verify whether a bank is FDIC-insured by searching its name in the FDIC's BankFind database.

How the $250,000 limit works across multiple accounts at one bank

The FDIC counts all your deposits at a single bank together, regardless of how many separate accounts you own there. If you have a savings account with $100,000 and a checking account with $100,000 at the same bank, that is $200,000 total coverage at that institution. If you add a money market account with $60,000, your total is now $260,000 — the bank covers $250,000 and you lose $10,000 if it fails.

Joint accounts are treated differently. If you and another person own a joint savings account with $300,000, each of you is insured for $250,000 separately. You are covered for $250,000 and the other person is covered for $250,000, so the full $300,000 is protected. This is one of the few ways to exceed the $250,000 limit at a single bank.

Retirement accounts (IRAs, SEP-IRAs, and similar) have their own $250,000 limit separate from your regular deposits. If you have $250,000 in a regular savings account and $250,000 in an IRA at the same bank, both are fully covered because they are counted under different categories.

What happens to your money if an FDIC-insured bank fails

When an FDIC-insured bank closes, the FDIC steps in as the insurer, not as a replacement bank. The agency typically arranges for another bank to take over the failed bank's deposits and accounts. In most cases, you can access your money within one to three business days through the new bank, often without any action on your part.

If no bank agrees to take over the deposits, the FDIC pays you directly. This process is slower — it can take weeks — but you receive a check or electronic transfer for the amount covered (up to $250,000). The FDIC has a claims process, but it is automatic; you do not have to file paperwork unless your situation is unusual, such as a dispute over account ownership.

Bank failures are rare. The FDIC has been insuring deposits since 1933, and the vast majority of banks remain solvent. The last significant wave of bank failures in the United States occurred in 2008 and 2009 during the financial crisis. Since then, failures have been uncommon.

Types of accounts and deposits the FDIC does and does not cover

The FDIC covers savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs) at member banks. It also covers individual retirement accounts (IRAs) held at banks, though under a separate $250,000 limit. Deposits in your name alone, joint deposits, and certain trust accounts all receive coverage.

The FDIC does not cover stocks, bonds, mutual funds, or brokerage accounts, even if held at a bank. It does not cover safe deposit boxes or the contents inside them. It does not cover U.S. Treasury securities, money orders, or cashier's checks. If you buy these products through a bank, they are not FDIC-insured — they may be insured under different rules (Treasury securities are backed by the U.S. government, for example), but not by the FDIC.

Cryptocurrency held at a bank is not FDIC-insured. Some banks now offer cryptocurrency services, but those holdings fall outside FDIC coverage entirely.

How to structure deposits across multiple banks if you have more than $250,000

If you have $500,000 in savings and want full FDIC coverage, open accounts at two different FDIC-insured banks and split the money: $250,000 at Bank A and $250,000 at Bank B. Both amounts are fully covered because the $250,000 limit applies per institution, not per person overall.

You can use the same strategy with more money. $750,000 would require three banks, $1 million would require four, and so on. The banks do not have to be large or well-known — any FDIC-insured institution counts. Many people use this approach with online banks, which often offer competitive interest rates and are just as insured as traditional brick-and-mortar banks.

Joint accounts offer another way to increase coverage at a single bank. If you and your spouse each own a separate savings account with $250,000, you have $500,000 covered at one bank. If you also own a joint account together with $250,000, that is another $250,000 covered (each of you is insured for $250,000 on the joint account). The math becomes complex with multiple account owners, so the FDIC's website has a coverage calculator you can use to verify your specific situation.

Credit unions and other institutions that are not FDIC-insured

Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. The coverage limit is the same — $250,000 per member per institution — but the rules are slightly different. NCUA insurance applies to savings accounts, checking accounts, and other deposit products at member credit unions. The process for a credit union failure is similar to an FDIC bank failure: your money is transferred to another credit union or you receive a check.

Investment firms, brokerage accounts, and insurance companies are not covered by the FDIC or NCUA. Some brokerages carry SIPC (Securities Investor Protection Corporation) insurance, which covers up to $500,000 per customer if the brokerage fails, but this is different from deposit insurance and does not explore to all investments.

If you bank with an institution that is not FDIC-insured, your deposits have no federal insurance protection. Before opening an account, search the institution's name in the FDIC's BankFind tool or the NCUA's credit union locator to confirm coverage.

Frequently Asked Questions

What happens to money over $250,000 if my bank fails?

Amounts above $250,000 are not covered by FDIC insurance. If your bank fails and you have $300,000 in a savings account, you lose the $50,000 above the limit. The only way to protect more than $250,000 at one institution is to use joint accounts or retirement accounts, which have separate coverage limits.

Does FDIC insurance cover my money if I withdraw it and keep it at home?

No. FDIC insurance only covers deposits held at member banks. Once you withdraw cash, it is no longer insured. If you keep large amounts of cash at home and your house is robbed or destroyed, the FDIC does not cover that loss.

If I have $250,000 in a savings account and $250,000 in a checking account at the same bank, am I fully covered?

No. The FDIC counts all your deposits at one bank together, regardless of account type. You have $500,000 total, so only $250,000 is covered. To protect both amounts, you would need to move one account to a different FDIC-insured bank.

Does FDIC insurance cover accounts I inherit?

Inherited deposits are covered under FDIC rules, but the coverage depends on the account type and how it was titled. If you inherit a savings account, coverage is typically $250,000 per beneficiary. The FDIC's website has detailed rules for inherited accounts, and you should contact the bank or the FDIC directly if you are unsure about your specific situation.

Can I get FDIC coverage above $250,000 by opening accounts under different names?

No. The FDIC identifies you by your Social Security number or tax ID, not by the name on the account. Opening multiple accounts under slightly different versions of your name at the same bank does not increase coverage — they all count as your deposits and are subject to the $250,000 limit.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.