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

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 at each bank where you hold an account. That limit applies to you as an individual — not to the total amount of money in the account. If you have $500,000 in a savings account at one bank, the FDIC covers $250,000 of it. The other $250,000 has no federal insurance.

The $250,000 limit has been in place since 2010. Before that, the standard coverage was $100,000, but Congress raised it during the financial crisis and made it permanent. This is the amount per depositor, per insured bank, per account ownership category — meaning the same person can have $250,000 covered in a savings account and another $250,000 covered in a checking account at the same bank, because those are different account categories.

FDIC insurance is automatic. You do not have to sign up, pay a fee, or do anything to set up it. If your bank fails, the FDIC steps in and pays you directly up to the limit. The process typically takes a few days to a few weeks, depending on how the bank closure is handled.

Key Takeaways

  • The FDIC insures up to $250,000 per person, per bank, per account type — so $250,000 in a savings account and $250,000 in a checking account at the same bank are both fully covered.
  • Money in a joint account is insured separately for each owner, meaning a joint savings account with two people gets $250,000 coverage per person ($500,000 total).
  • Certain account types — retirement accounts, trust accounts, and accounts held in different legal names — have their own $250,000 limits and do not count against your personal limit.
  • FDIC coverage applies only to deposits held at banks; it does not cover stocks, bonds, mutual funds, or money market funds, even if you buy them through your bank.
  • If you have more than $250,000 at one bank, the amount over the limit is uninsured and at risk if the bank fails.

How the $250,000 limit works across different account types

The FDIC divides accounts into separate categories, and you get $250,000 of coverage in each one at the same bank. This means you can have more than $250,000 total at one bank and still be fully insured — as long as the money is in different account categories.

A single savings account and a single checking account are two different categories. So if you have $250,000 in savings and $250,000 in checking at the same bank, both are fully covered. A money market deposit account (a bank product, not a mutual fund) is a third category. A certificate of deposit (CD) is a fourth. Each one gets its own $250,000 limit.

The rule is stricter for accounts in the same category. If you have two savings accounts at the same bank, the FDIC adds them together and covers up to $250,000 total across both. The bank name is what matters, not the account number or the branch. If you have accounts at two different banks, each bank's accounts are insured separately.

Joint accounts and how they change the coverage amount

A joint account — one where two or more people own the account together — gets $250,000 of coverage per owner, not per account. If you and your spouse have a joint savings account with $500,000 in it, the FDIC covers $250,000 for you and $250,000 for your spouse, protecting the full amount.

The key is that both owners must have equal rights to the account. If the account is set up so that only one person can withdraw money, or if one person is listed as the owner and the other as an authorized user, the FDIC treats it as a single-owner account and covers only $250,000 total. Check with your bank about how the account is registered if you are unsure.

If three people own a joint account together, each gets $250,000 of coverage. A joint account with $750,000 in it owned by three people would be fully covered. The same principle applies: the coverage is per person, not per account.

Retirement accounts, trusts, and other special categories

Retirement accounts — IRAs, Roth IRAs, SEP-IRAs, and similar accounts — are insured separately from your regular savings and checking accounts. You get another $250,000 of coverage in each type of retirement account at the same bank. A traditional IRA and a Roth IRA are different categories, so you could have $250,000 in a traditional IRA and $250,000 in a Roth IRA at the same bank, and both would be fully covered.

Trust accounts are also a separate category. If you have set up a revocable living trust and the bank account is held in the trust's name, that account gets its own $250,000 of coverage. This is separate from any personal savings account you have at the same bank.

Accounts held in different legal names — for example, an account in your name and an account in your business's name — are treated as separate categories. The FDIC covers $250,000 for the account in your personal name and another $250,000 for the account in your business name, even at the same bank.

What the FDIC does not cover

FDIC insurance covers only deposits — money you put in a bank account. It does not cover investments, even if you buy them through your bank. Stocks, bonds, mutual funds, and exchange-traded funds (ETFs) are not FDIC-insured. If your bank offers a brokerage service and you buy securities through it, those holdings are not protected by the FDIC.

Money market mutual funds are also not FDIC-insured. These are different from money market deposit accounts, which are bank products and are covered. The name is similar, but the protection is completely different. A money market mutual fund is an investment product and falls under Securities Investor Protection Corporation (SIPC) rules instead.

Safe deposit boxes and their contents are not covered by FDIC insurance. If you store valuables, documents, or cash in a safe deposit box at your bank, the FDIC does not insure them. The bank may offer its own coverage for safe deposit box contents, but you need to ask about that separately.

What happens when a bank fails and you are covered

When a bank fails, the FDIC takes over and pays depositors directly. The process is called a bank closure. The FDIC identifies all insured deposits, calculates what each person is owed up to the $250,000 limit, and transfers the money to a new bank or pays it directly to the depositor.

In most cases, you regain access to your insured funds within a few business days. The FDIC has a goal of making funds available within one business day of the bank closure. In some cases, especially if the bank closure is complex or involves many accounts, it may take longer — up to a few weeks — but the FDIC has a track record of paying out quickly.

If you had $400,000 in a savings account at a failed bank, you would receive $250,000 from the FDIC. The remaining $100,000 would be treated as a claim against the bank's assets. You might recover some or all of it if the bank's assets are sold, but there is no may provide. In practice, uninsured deposits at failed banks often result in significant losses.

How to protect deposits over $250,000

If you have more than $250,000 to keep safe, you have several options. The simplest is to split your money across multiple banks. $250,000 at Bank A and $250,000 at Bank B are both fully insured. You can open accounts at as many banks as you need to stay within the $250,000 limit at each one.

You can also use different account categories at the same bank. A savings account, a checking account, a CD, and a money market deposit account at the same bank each get $250,000 of coverage. If you have a spouse, a joint account adds another $250,000 per person. A retirement account adds another $250,000. These categories stack, so you can cover significantly more than $250,000 at a single bank by using multiple account types.

Some banks offer sweep accounts or linked accounts that automatically move money between categories to maximize FDIC coverage. Ask your bank whether this service is available. It can be useful if you have a large balance that you want to keep at one institution for convenience.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is insured?

The FDIC covers $250,000. The remaining $50,000 is uninsured. If the bank fails, you would receive $250,000 and lose the other $50,000 unless the bank's assets cover it.

Does FDIC coverage explore to money I have in a savings account at a credit union?

No. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. NCUA coverage works similarly — up to $250,000 per member, per credit union — but it is a separate system. Make sure you know which agency insures your account.

If I have a joint account with my spouse and we each add $250,000, is all $500,000 covered?

Yes. The FDIC covers $250,000 for you and $250,000 for your spouse in a joint account, for a total of $500,000 coverage on that account.

Are savings bonds or Treasury bills held at a bank FDIC-insured?

No. Savings bonds, Treasury bills, and other securities are not FDIC-insured, even if you buy them through your bank. They are backed by the U.S. government directly, but not through FDIC insurance.

What if my bank is bought by another bank — do I keep my FDIC coverage?

Yes. FDIC coverage follows the account, not the bank name. If your bank is acquired, your coverage continues at the new bank. The FDIC tracks accounts by the original bank where you opened them, so you remain protected up to $250,000.