The FDIC insures up to $250,000 per depositor, per bank, per account category

The Federal Deposit Insurance Corporation (FDIC) covers your money in a savings account up to $250,000. That limit applies to each bank separately — so if you have $250,000 at Bank A and $250,000 at Bank B, both are fully covered. The $250,000 limit also depends on the account category: a savings account, a checking account, and a money market account at the same bank are each insured separately up to $250,000.

This protection exists because banks can fail. When a bank closes, the FDIC steps in and makes sure depositors get their money back, up to the limit. You do not have to do anything to set up this coverage — it is automatic the moment you open an account at an FDIC-insured bank.

The $250,000 limit has been in place since 2010. Before that, the standard was $100,000. The higher amount was made permanent after the 2008 financial crisis.

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account type, so money in a savings account, checking account, and money market account at the same bank are each protected separately.
  • If you have more than $250,000 at one bank, the amount over $250,000 is not covered, so splitting money across multiple banks protects larger balances.
  • FDIC coverage is automatic at any bank displaying the FDIC logo or listed on the FDIC's bank search tool — you do not need to sign up or pay a fee.
  • Joint accounts (accounts owned by two or more people) have a separate $250,000 limit per person, so a joint account with two owners is covered up to $500,000.
  • Certain account types like retirement accounts and trust accounts have their own coverage limits and rules that differ from standard savings accounts.

How the $250,000 limit works across multiple banks

If you keep $250,000 at Bank A, all of it is covered. If you then move $250,000 to Bank B, all of that is also covered — because the limit is per bank, not per person across all banks. The FDIC does not combine your balances at different institutions.

This is why people with large amounts of money sometimes use a strategy called "deposit insurance laddering" — they split their money across multiple banks to keep everything covered. If you have $500,000, 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 to get separate coverage. If Bank A has a savings account and a checking account in your name, each account type is covered separately up to $250,000. But if you have two savings accounts at the same bank, they are added together and covered as one account up to $250,000 total.

What happens if your bank fails

When an FDIC-insured bank fails, the FDIC takes over and arranges for your money to be transferred to another bank or pays you directly. This process usually happens over a weekend, and by Monday morning, your money is available at the new bank or in your account.

You will receive a notice from the FDIC or the new bank telling you what happened and where your money is. If your balance was under $250,000, you get all of it. If your balance was over $250,000, you receive $250,000 and lose the rest.

Bank failures are rare. The FDIC has a fund that banks pay into through insurance premiums, and this fund covers the cost of protecting deposits. Since the FDIC was created in 1933, the vast majority of depositors have never experienced a bank failure.

Joint accounts and FDIC coverage

A joint account — one owned by two or more people — gets its own $250,000 coverage limit per owner. If you and your spouse have a joint savings account with $500,000, the account is covered up to $250,000 per person, meaning the full $500,000 is protected.

Each owner's share is insured separately. If the account has three owners and $750,000, each owner's $250,000 share is covered, protecting the full amount. The FDIC calculates each person's ownership share based on what the account records show.

This is different from individual accounts. If you have $500,000 in your own name at one bank, only $250,000 is covered. But if that same $500,000 is in a joint account with one other person, the full amount is covered because each person's $250,000 share is protected separately.

Retirement accounts and trust accounts have different limits

An Individual Retirement Account (IRA) at an FDIC-insured bank is covered up to $250,000, separate from any other accounts you have at that bank. So you could have $250,000 in a regular savings account and $250,000 in an IRA at the same bank, and both amounts would be fully covered.

A revocable trust account (a bank account set up as part of a living trust) is covered up to $250,000 per beneficiary named in the trust, up to a total of $250,000 per trust. If your trust names three beneficiaries, the coverage is still capped at $250,000 total for that trust account, not $250,000 per beneficiary.

Irrevocable trusts, accounts held for a minor child, and accounts where you are a beneficiary (but not the owner) have their own coverage categories with different rules. If you have one of these account types, the FDIC website has a coverage calculator that shows exactly how much is protected.

How to verify your bank is FDIC-insured

Not every bank is FDIC-insured. Most traditional banks are, but some online banks, credit unions, and other financial institutions are not. Before you open an account, check whether the bank displays the FDIC logo or search for the bank's name on the FDIC's Bank Find tool at fdic.gov.

The FDIC logo usually appears on the bank's website, in the lobby, or on account statements. If you do not see it, search the bank's name in the FDIC's database. If the bank does not appear, your deposits are not covered by FDIC insurance.

Credit unions are insured by a different agency called the National Credit Union Administration (NCUA), which offers the same $250,000 coverage limit. The protection works the same way, but you need to verify the credit union is NCUA-insured, not FDIC-insured.

What FDIC insurance does not cover

FDIC insurance covers the money in your account, but not investments held at the bank. If you buy stocks, bonds, mutual funds, or brokerage products through a bank, those are not covered by FDIC insurance. They may be covered by a different type of protection called SIPC (Securities Investor Protection Corporation), but that is a separate system with different limits.

Safe deposit boxes are also not covered. If you rent a safe deposit box at a bank and store cash, jewelry, or documents inside, the FDIC does not protect those contents if the bank fails. Safe deposit box contents are your responsibility to insure separately.

Money owed to the bank — such as a loan you have not repaid — can be deducted from your covered deposits. If you owe the bank $50,000 and have $200,000 in a savings account, the bank can take the $50,000 from your account to pay the debt before the FDIC steps in.

Frequently Asked Questions

If I have $300,000 in one savings account, how much is covered?

Only $250,000 is covered. The remaining $50,000 is not protected. To cover the full $300,000, you would need to split it across two banks or move $50,000 into a different account category (like a money market account) at the same bank, since each account type has its own $250,000 limit.

Does FDIC insurance cover money I transfer between banks?

Yes. Coverage begins the moment the money arrives in your account at an FDIC-insured bank. There is no waiting period. If you move $250,000 from Bank A to Bank B, it is covered at Bank B as soon as the transfer completes.

What if I have accounts at two branches of the same bank?

Branches do not matter. All accounts you own at the same bank are combined for insurance purposes. If you have $150,000 at the downtown branch and $150,000 at the uptown branch, both in your name, they are treated as one account and covered up to $250,000 total, not separately.

Are online banks FDIC-insured?

Many are, but not all. Online banks can be FDIC-insured if they are chartered as banks and pay into the FDIC fund. Check the bank's website for the FDIC logo or search the bank's name on fdic.gov. Some online banks are not FDIC-insured, so verification is important before you deposit money.

If my bank fails, how long does it take to get my money back?

Usually within one to three business days. The FDIC typically arranges for your deposits to be transferred to another bank over a weekend, and you can access your money by Monday. In rare cases where a transfer is not possible, the FDIC sends you a check, which may take longer.