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

The Federal Deposit Insurance Corporation insures deposits at member banks if the bank fails. The standard coverage limit is $250,000 per person, per institution, per account type. That means if you have $250,000 in a savings account at Bank A, all of it is covered. If you have $300,000 in that same account, only $250,000 is insured — the extra $50,000 is not.

The $250,000 limit applies to the total across all accounts of the same type at one bank. If you have two savings accounts at the same bank under your own name, the FDIC adds them together and insures up to $250,000 combined, not $250,000 each. The limit resets if you move to a different bank or if the account is registered under a different ownership category.

This limit has been in place since 2008. Before that, the standard was $100,000. The increase was temporary at first but became permanent in 2010.

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank per account type, so $300,000 in one savings account leaves $50,000 uninsured.
  • Multiple accounts of the same type at the same bank are added together for insurance purposes — opening a second savings account does not double your coverage.
  • Different account types at the same bank each get their own $250,000 limit, so a savings account and a money market account are insured separately.
  • Joint accounts, retirement accounts, and trust accounts are insured separately from individual accounts, allowing you to cover more money at one bank if you use different ownership structures.
  • The FDIC does not insure stocks, bonds, mutual funds, or money market funds, even if you buy them through a bank.

How the $250,000 limit breaks down by account type

The FDIC recognizes several ownership categories, and each one gets its own $250,000 coverage limit at the same bank. An individual account, a joint account, and a retirement account are three separate categories. This means you can have $250,000 insured in your own name, another $250,000 in a joint account with your spouse, and another $250,000 in an IRA — all at the same bank, all fully covered.

The main categories are: individual accounts (in your name alone), joint accounts (two or more people with equal rights), retirement accounts (IRAs and certain other retirement plans), payable-on-death accounts (where you name a beneficiary), and trust accounts (where the account is held in trust for someone else). Each category is insured separately up to $250,000.

A money market account at the same bank as your savings account is still considered a savings-type account for FDIC purposes, so the two are combined under one $250,000 limit. A checking account is also a deposit account and combines with savings. Certificates of deposit (CDs) are treated the same way — a $100,000 savings account and a $100,000 CD at the same bank share one $250,000 limit.

What happens when you exceed $250,000 at one bank

If you have more than $250,000 in deposits at a single bank, the amount over $250,000 is uninsured. If that bank fails, you lose the uninsured portion. The FDIC does not automatically move excess funds to another bank or protect them in any way — the responsibility is on you to split your money across institutions if you want full coverage.

The practical effect is that if you have $300,000 in a savings account at Bank A and Bank A becomes insolvent, the FDIC will pay you $250,000. The remaining $50,000 becomes a claim against the bank's assets, and you may recover some or none of it depending on how much the bank's assets sell for in liquidation. In most modern bank failures, depositors with uninsured balances recover little to nothing.

This is why people with large balances often spread money across multiple banks. A person with $500,000 might keep $250,000 at Bank A and $250,000 at Bank B, ensuring full coverage at both institutions.

Joint accounts and how they affect your coverage

A joint account is insured separately from an individual account. If you and your spouse each have $250,000 in individual savings accounts at the same bank, and you also have a joint savings account with $250,000, the FDIC covers all three amounts — $750,000 total. The joint account is treated as a separate ownership category.

The FDIC insures the joint account as a whole, not per person. If a joint account holds $300,000, only $250,000 is covered, regardless of how many owners are on the account. The coverage does not multiply by the number of account holders.

If the account owners are married and one dies, the surviving spouse's interest in the joint account remains covered up to $250,000. If the account is between two unrelated people, the same rule applies — the joint account itself is the insured unit, not the individuals within it.

Retirement accounts and trust accounts get separate limits

An IRA held at a bank is insured up to $250,000 separately from any individual or joint account at that same bank. This means you can have $250,000 in a traditional IRA and another $250,000 in a savings account under your own name at the same bank, and both are fully covered. A Roth IRA is treated as a separate account type from a traditional IRA, so they are also insured separately.

A trust account — where the account is held in trust for a named beneficiary — is insured up to $250,000 per beneficiary, up to a maximum of $250,000 total per trust. If you set up a trust account naming your two children as beneficiaries, the FDIC covers up to $250,000 for the account as a whole, not $250,000 per child. The beneficiary designation affects how the limit is calculated, but it does not multiply the coverage.

Payable-on-death (POD) accounts work similarly. If you name a beneficiary on a savings account, that account is insured separately from your individual account at the same bank. The POD account is covered up to $250,000, and your individual account is covered up to $250,000 — two separate limits.

What the FDIC does not cover

The FDIC insures deposits — money you place in the bank for safekeeping or to earn interest. It does not insure investments. If you buy stocks, bonds, mutual funds, or exchange-traded funds through a bank, those are not FDIC-insured, even though you bought them at a bank branch. Money market funds are also not covered, even though they sound like savings accounts.

Safe deposit boxes are not insured. The contents of a safe deposit box — jewelry, documents, cash stored in the box — are not protected by the FDIC. Safe deposit boxes are a storage service, not a deposit account.

Accrued interest is covered up to the $250,000 limit. If you have $249,000 in a CD and it earns $2,000 in interest before the bank fails, the FDIC covers the full $251,000 because interest is considered part of the deposit. However, if you have $250,000 and earn $5,000 in interest, only $250,000 total is covered — the interest does not extend the limit.

How to check if your bank is FDIC-insured

Most banks are FDIC members, but not all. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC, and the coverage limits are the same: $250,000 per person per institution per account type. Some very small banks or specialized institutions may not be members of either system.

You can search the FDIC's Bank Find tool on their website to confirm whether a specific bank is insured and to see the current coverage limits for your accounts at that institution. The tool shows you the bank's name, location, and FDIC certificate number. If a bank does not appear in the search, it is not FDIC-insured.

Your bank statement or account agreement should also state that the account is FDIC-insured. Many banks print this information on statements or in the account documentation. If you are unsure, contact the bank directly or use the Bank Find tool.

Frequently Asked Questions

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

No. Savings accounts and checking accounts are both deposit accounts and are combined under one $250,000 limit. Your $500,000 total is covered only up to $250,000. To cover both amounts, you would need to move one account to a different bank.

Does opening an account in a different name at the same bank give me another $250,000 of coverage?

Only if the account is in a different ownership category. An account in your name alone and a joint account with your spouse are two separate categories, so each gets $250,000. An account in your name and an account in your child's name alone are two different individuals, so each gets their own $250,000 at that bank. But an account in your name and an account in a nickname or alternate version of your name are treated as the same person and combined.

What happens to my money if the bank fails?

The FDIC takes over the bank and pays insured depositors directly, usually within a few business days. You receive up to $250,000 per account category. Uninsured amounts become claims against the bank's remaining assets, and you may recover some or none depending on the liquidation. In practice, uninsured depositors often lose their money.

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

No. Savings bonds, Treasury bills, and any investment products are not FDIC-insured, even if you buy them through a bank. Only deposit accounts — savings, checking, money market deposit accounts, and CDs — are covered.

If I have an IRA and a 401(k) at the same bank, do they share the $250,000 limit?

IRAs are FDIC-insured up to $250,000. A 401(k) is typically held at a brokerage or plan administrator, not at a bank, so it is not FDIC-insured. If your 401(k) is held at a bank, it is treated as a separate retirement account category from an IRA, so each gets its own $250,000 limit.