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

The Federal Deposit Insurance Corporation insures $250,000 per depositor per bank per account category. That means if you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose $50,000 if the bank fails. The limit resets for each separate bank you use, and it resets again for each different type of account you hold at the same bank.

The $250,000 limit has been in place since 2010. Before that it was $100,000. The limit applies to the total of all deposits you own in that category at that bank — it does not matter if you split the money across multiple accounts or multiple branches of the same bank.

What matters for FDIC purposes is not the account name but the account category. A checking account, a savings account, and a money market account are three separate categories. A joint account is a fourth category. Each one gets its own $250,000 of coverage at the same bank.

Key Takeaways

  • The FDIC covers $250,000 per depositor per bank per account category, so deposits above that amount at a single bank are not protected.
  • Each account category — checking, savings, money market, joint account — gets separate $250,000 coverage at the same bank, so you can protect more than $250,000 by using different account types.
  • The limit resets completely at each different bank, so spreading deposits across multiple banks protects more money than keeping everything at one institution.
  • The FDIC does not cover investment accounts, brokerage accounts, mutual funds, or stocks, even if held at a bank.

How the account category system works

The FDIC groups deposits into categories, and each category gets $250,000 of coverage separately. The main categories are: single accounts (held in one person's name), joint accounts (held in two or more people's names), retirement accounts (IRAs and similar), trust accounts, and accounts held in a business name.

A single checking account and a single savings account at the same bank are two different categories. You get $250,000 coverage on the checking account and another $250,000 on the savings account. If you add a money market account, that is a third category with its own $250,000 of coverage.

A joint account is treated as a separate category from your individual accounts. If you and your spouse each have $200,000 in individual checking accounts at the same bank, and you also have a joint savings account with $200,000, the FDIC covers all three accounts in full — $200,000 + $200,000 + $200,000 — because they are three different categories.

The account title matters less than the legal ownership structure. Two accounts both titled "John Smith" are the same category even if one is called "Savings" and one is called "Money Market". The FDIC adds them together and covers up to $250,000 of the combined total.

What happens when you exceed the limit at one bank

If you have $300,000 in a single checking account at Bank A, the FDIC insures $250,000. The remaining $50,000 is uninsured. If Bank A fails and is taken over by the FDIC, you receive $250,000 and lose $50,000.

The FDIC does not automatically move your money or split it across banks. You have to do that yourself. If you want to protect $300,000, you move $250,000 to Bank A and $50,000 to Bank B. Now both amounts are covered.

The FDIC pays out covered deposits within a few business days of a bank failure. The process is automatic — you do not have to file a claim. The FDIC takes over the failed bank, freezes all accounts, and then releases covered amounts to depositors. Uninsured amounts may be recovered later if the FDIC sells the bank's assets, but there is no may provide.

How spreading money across banks increases your protection

Because the $250,000 limit is per bank, not per person, you can protect more money by using multiple banks. If you have $500,000 in cash, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered.

The same principle applies to account categories. At Bank A you could have $250,000 in a checking account (single category) and $250,000 in a joint savings account with your spouse (joint category), for $500,000 total coverage. At Bank B you could repeat the structure. A person with $1 million in deposits could protect all of it by using four banks and two account categories at each one.

This strategy is most useful if you have more cash than the $250,000 limit and want to keep it in bank deposits rather than investments. Many people use a combination of banks and account types to stay within coverage limits without moving money frequently.

What the FDIC does not cover

The FDIC covers deposits — money you put into a bank account. It does not cover investments. If your bank sells you stocks, bonds, mutual funds, or brokerage accounts, those are not FDIC-insured, even if you bought them at the bank and the money sits in an account with a bank name on it.

Safety deposit boxes are not covered. If you store valuables, documents, or cash in a safety deposit box at a bank, the FDIC does not insure them. The bank may have its own insurance, but that is separate from FDIC coverage.

Cryptocurrency, even if held through a bank, is not FDIC-insured. Some banks now offer cryptocurrency services, but those holdings fall outside FDIC protection.

Deposits in foreign branches of U.S. banks are not covered. If you have an account at a U.S. bank's branch in another country, FDIC insurance does not explore. Deposits at foreign banks are never FDIC-insured, regardless of whether the bank has a U.S. presence.

Retirement accounts and trust accounts get separate coverage

An Individual Retirement Account (IRA) is its own FDIC category, separate from your checking and savings accounts at the same bank. A traditional IRA gets $250,000 of coverage. A Roth IRA gets another $250,000 of coverage. If you have both at the same bank, you have $500,000 of total coverage just from the two IRA types.

A revocable trust account (also called a living trust) is another category. If you set up a trust and name yourself as the beneficiary, the FDIC covers $250,000 of the trust's deposits at each bank. If you name multiple beneficiaries in the trust, coverage may increase — the FDIC covers $250,000 per beneficiary for trust accounts, up to a total of $1.25 million per trust at one bank.

These categories exist because the FDIC wants to encourage people to save for retirement and to use trusts for estate planning. The separate limits mean you can hold more insured deposits if you use different account structures.

How to check your coverage at your bank

The FDIC provides an online tool called the FDIC Coverage Calculator where you enter your bank name, account types, and deposit amounts, and it tells you how much is covered. You can access it on the FDIC website without logging in or providing personal information.

Your bank should also provide FDIC coverage information in its account disclosures or on its website. Many banks include a coverage summary in the account agreement you sign when you open an account.

If you have questions about whether a specific account type or deposit structure is covered, you can contact the FDIC directly. The FDIC has a customer service line and an email address for coverage questions. Response times vary, but the FDIC typically answers within a few business days.

Frequently Asked Questions

Does FDIC coverage explore to money market accounts?

Yes. Money market accounts held at a bank are FDIC-insured up to $250,000, and they are a separate category from checking and savings accounts. Money market funds sold by investment firms are not FDIC-insured, even if you buy them through a bank.

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

Yes. Checking and savings are separate account categories, so each gets $250,000 of coverage. You are fully covered for $500,000 total at that bank.

What if my bank is bought by another bank?

If Bank A is bought by Bank B while you have deposits at both, your accounts are now all at Bank B. The FDIC treats them as deposits at one bank, so your coverage limits reset. Deposits that were separate at two banks are now combined at one bank and may exceed the $250,000 limit per category. You should move money to another bank if necessary to stay within coverage limits.

Does FDIC coverage explore to credit unions?

No. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. NCUA coverage works similarly — $250,000 per depositor per credit union per account category — but it is a separate system.

If I have a joint account with my spouse, does each of us get $250,000 of coverage?

Yes. A joint account is its own category, and the FDIC covers $250,000 of the joint account's deposits. Each owner of the joint account is insured for $250,000 of that account, so a $500,000 joint account would have $250,000 covered and $250,000 uninsured.