The FDIC covers up to $250,000 per depositor, per bank, per account ownership category
The Federal Deposit Insurance Corporation insures $250,000 per person at each bank. That limit applies to your savings account, checking account, money market account, and certificate of deposit combined — not separately. If you have $150,000 in savings and $120,000 in checking at the same bank, you are covered for $250,000 total, leaving $20,000 uninsured.
The $250,000 limit resets if you move to a different bank. Money at Bank A and money at Bank B are insured separately. This matters if you have more than $250,000 to keep safe — you can spread it across multiple banks and stay fully covered.
The coverage applies only if the bank fails. FDIC insurance does not protect you from theft, fraud, or your own mistakes. It does not cover investment accounts, stocks, bonds, or mutual funds held at a bank's brokerage arm. It covers only deposit products: savings accounts, checking accounts, money market accounts, and CDs.
Key Takeaways
- The FDIC covers $250,000 per person per bank, combining all your deposit accounts at that bank into one limit.
- If you have more than $250,000, you can open accounts at different banks and each account will be insured separately up to $250,000.
- The coverage applies only when a bank fails, not when money is stolen, lost to fraud, or spent by mistake.
- Joint accounts, retirement accounts, and trust accounts have their own separate $250,000 limits, so the structure of account ownership matters.
- You can check whether a specific bank is FDIC-insured using the FDIC's BankFind tool on their website.
How the $250,000 limit works across multiple accounts at one bank
All your deposit accounts at a single bank share one $250,000 insurance limit. If you have a savings account with $100,000, a checking account with $80,000, and a CD with $90,000 at the same bank, the FDIC covers only $250,000 of that $270,000 total. The extra $20,000 is uninsured.
The exception is account ownership category. A joint account (owned by two or more people) gets its own $250,000 limit separate from your individual accounts. If you have $250,000 in your individual savings account and $250,000 in a joint savings account with your spouse at the same bank, both are fully covered — $500,000 total. Each person in the joint account is insured for their share up to $250,000.
Retirement accounts (IRAs, Roth IRAs, SEP-IRAs) also have their own $250,000 limit separate from your regular accounts. A trust account has its own limit too, though the calculation is more complex and depends on the number of beneficiaries named in the trust.
What happens when you have more than $250,000 to protect
The simplest way to cover more than $250,000 is to split your money across different banks. Open a savings account at Bank A with $250,000 and a savings account at Bank B with $250,000, and both are fully insured. The FDIC insures based on the bank, not the account type or balance, so moving to a second institution resets your coverage.
You do not need to use different account types or different account names to get separate coverage. Two savings accounts at two different banks each get $250,000 of coverage. Two savings accounts at the same bank share one $250,000 limit.
Before you open accounts at a new bank, confirm it is FDIC-insured. Most banks are, but not all. The FDIC's BankFind tool (available on their website) lets you search by bank name or location to verify coverage. Credit unions are insured by the National Credit Union Administration (NCUA) instead, which offers the same $250,000 limit but is a separate program.
Account ownership categories and separate insurance limits
The FDIC recognizes different ownership structures, and each one gets its own $250,000 limit at the same bank. This is important if you are managing money for other people or if you own accounts jointly.
| Account Type | Coverage Limit | Example |
|---|---|---|
| Individual account (in your name only) | $250,000 | Your savings account |
| Joint account (two or more owners) | $250,000 per owner | You and your spouse each covered for $250,000 |
| Retirement account (IRA, Roth IRA, SEP-IRA) | $250,000 | Your IRA separate from your checking account |
| Trust account | $250,000 per beneficiary (up to 5) | Trust naming three beneficiaries gets $750,000 coverage |
| Payable-on-death (POD) account | $250,000 per beneficiary | Account naming two beneficiaries gets $500,000 coverage |
A payable-on-death account (also called a POD or in-trust-for account) is a regular account you own during your lifetime, but money goes to a named beneficiary if you die. The FDIC covers $250,000 per beneficiary you name, separate from your other accounts at that bank. If you name two beneficiaries on a POD account, you get $500,000 of coverage for that account alone.
If you are a parent holding money in a custodial account for a minor child, that account is insured separately from your own accounts. The child's name on the account matters for FDIC purposes — it is treated as the child's account, not yours.
What the FDIC does not cover
FDIC insurance covers only deposit products at banks that fail. It does not cover losses from fraud, theft, or your own mistakes. If someone steals your debit card and drains your account, the FDIC does not reimburse you — that is a separate dispute you handle with the bank or through your debit card issuer's fraud protection.
Investment products held at a bank are not covered. If you buy stocks, bonds, mutual funds, or exchange-traded funds through a bank's brokerage service, those are not FDIC-insured. Some brokerage firms carry SIPC insurance (Securities Investor Protection Corporation) instead, which covers up to $500,000 per customer but works differently and has different limits.
Safe deposit boxes are not covered. If you store jewelry, documents, or cash in a safe deposit box at a bank and the bank is robbed or the box is damaged, the FDIC does not pay for what was inside. The bank may carry insurance, but that is separate from FDIC coverage.
Foreign currency deposits are not covered by the FDIC. If you hold euros, pounds, or other foreign currency in a U.S. bank account, that money is not insured. Some banks do not offer foreign currency accounts at all.
How to verify your bank is FDIC-insured
Not every bank is FDIC-insured, though most are. Before you move money to a new bank, confirm it has FDIC coverage. The FDIC's BankFind tool is the official way to check. Go to the FDIC website, enter the bank's name or location, and the tool will tell you whether it is insured and what the coverage limits are for your specific situation.
You can also call the bank directly and ask whether it is FDIC-insured. The answer should be yes for any mainstream bank. Online banks, credit unions, and smaller regional banks are usually insured, but it is worth confirming before you deposit large amounts.
If a bank is not FDIC-insured, your money has no federal insurance protection if the bank fails. This is rare — the FDIC has been insuring deposits since 1933 — but it is a real risk with uninsured institutions.
What happens if a bank fails
If an FDIC-insured bank fails, the FDIC steps in and pays depositors up to the coverage limit. You do not have to file a claim or contact the FDIC yourself. The FDIC works with the failed bank to transfer your account to another bank, or it sends you a check for your insured balance.
The process usually takes a few days to a few weeks, depending on how the bank failure is handled. In most cases, your money is available at a new bank within a few business days. The FDIC's goal is to minimize disruption, so they move quickly.
If your balance exceeds the $250,000 limit, you lose the uninsured portion. This is why splitting money across banks matters if you have substantial savings. The FDIC does not make exceptions for hardship or special circumstances — the limit is the limit.
Frequently Asked Questions
If I have $300,000 at one bank, how much is covered?
Only $250,000 is covered. The remaining $50,000 is uninsured. To protect all $300,000, you would need to move $50,000 to a different FDIC-insured bank, where it would be covered up to $250,000 at that second bank.
Does FDIC insurance cover money stolen from my account?
No. FDIC insurance covers only losses when a bank fails. If your account is hacked, your debit card is stolen, or someone commits fraud, that is a separate issue handled by the bank's fraud department or your debit card issuer. Report fraud to your bank when ready.
Are credit unions covered by FDIC insurance?
No. Credit unions are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 coverage limit but is a separate program. The protection is equivalent, but you need to confirm the credit union is NCUA-insured, just as you would confirm a bank is FDIC-insured.
If my spouse and I have a joint account with $500,000, how much is covered?
The joint account is covered for $250,000 per owner. If you and your spouse each own half the account, you are each covered for $250,000, so the full $500,000 is insured. If one person owns more than half, the coverage is still $250,000 per person, but the calculation of who owns what matters for the exact amount each person can recover.
Do I need to do anything to make sure my account is FDIC-insured?
No. If your bank is FDIC-insured, your deposits are automatically covered up to the limit. You do not need to sign up, pay a fee, or take any action. Just confirm your bank is insured using the BankFind tool, and keep track of your balances to stay within the $250,000 limit per bank.