The standard FDIC insurance limit is $250,000 per depositor, per bank, per ownership category

If your bank fails, the Federal Deposit Insurance Corporation (FDIC) will reimburse you up to $250,000 in your checking account. That limit applies to each bank separately — if you have $250,000 at Bank A and $250,000 at Bank B, both are fully covered. The $250,000 figure has been in place since 2010 and applies to all deposit account types at FDIC-member banks, including checking, savings, and money market accounts.

The coverage is automatic. You do not need to register, pay a fee, or do anything to set up it. Every FDIC-member bank is required to carry this insurance, and it covers you whether the bank is large or small, online or brick-and-mortar. The FDIC does not cover investment products like stocks, bonds, or mutual funds, even if you buy them through your bank.

If you have more than $250,000 at a single bank, the amount over that limit is not covered. This matters most for people with substantial savings or business accounts. The structure of your account ownership — whether it is in your name alone, jointly owned, or held in trust — changes how much coverage you receive, which is explained in the sections below.

Key Takeaways

  • The FDIC covers up to $250,000 per person per bank, and this limit has applied since 2010.
  • Coverage is automatic at all FDIC-member banks and requires no action on your part.
  • If you own an account jointly with another person, you each receive $250,000 of coverage, not $250,000 total.
  • Money in trust accounts, retirement accounts, and business accounts may have separate coverage limits that allow you to protect more than $250,000 at a single bank.
  • The FDIC does not cover stocks, bonds, mutual funds, or money held outside a bank account.

How the $250,000 limit works across multiple banks

The $250,000 limit is per bank, not per person. If you have $300,000 in checking at Bank A, you lose $50,000 of coverage. But if you split that money — $150,000 at Bank A and $150,000 at Bank B — both amounts are fully covered because each bank is a separate FDIC-insured institution.

This matters when you are deciding where to keep money. Some people with large balances open accounts at multiple banks specifically to stay within the coverage limit at each one. Online banks and traditional banks count as separate institutions, so moving money from a brick-and-mortar bank to an online bank does not reduce your total coverage — it increases it, as long as both are FDIC members.

The FDIC maintains a tool called the FDIC Certificate Lookup that lets you search for any bank and confirm it is insured. If a bank is not on that list, your deposits there are not protected by the FDIC, though some may be covered by other insurance programs.

Joint accounts and how ownership changes your coverage

If you own a checking account jointly with another person, the FDIC covers up to $250,000 for each owner. That means a joint account with two people has $500,000 of total coverage — $250,000 in your name and $250,000 in the other person's name. This is one of the most misunderstood parts of FDIC insurance, because people often think the limit is $250,000 per account rather than per person.

The coverage applies only to the portion of the account that belongs to each person. If you and your spouse have a joint checking account with $300,000 and you contributed $200,000 while your spouse contributed $100,000, the FDIC will cover your $200,000 fully and your spouse's $100,000 fully, for a total of $300,000. If the account had $600,000 split equally, each of you would lose $50,000 of coverage.

Accounts in a single person's name are treated differently. If you have a checking account in your name alone and a separate savings account in your name alone at the same bank, both accounts are added together for coverage purposes. The combined total is covered up to $250,000. This is why people with large balances sometimes use joint accounts or trust structures — to increase their total coverage at a single bank.

Trust accounts, retirement accounts, and business accounts have separate limits

The FDIC recognizes several different ownership categories, and each one has its own $250,000 limit at the same bank. This means you can have more than $250,000 at a single FDIC-member bank and still be fully covered, as long as the money is in different ownership categories.

A revocable trust account (also called a living trust) is covered up to $250,000 per beneficiary, up to a total of $1.25 million per trust. If you set up a trust with five beneficiaries and deposit $250,000 for each one, the entire $1.25 million is covered at a single bank. Retirement accounts — including IRAs, SEP-IRAs, and Roth IRAs — are each covered up to $250,000 separately from your other accounts. A business account in the name of a sole proprietorship or partnership is covered separately from your personal checking account.

The FDIC publishes a detailed breakdown of all ownership categories on its website. If you have a complex account structure — for example, a personal account, a joint account with your spouse, a trust account, and a business account — each one is insured separately up to $250,000. The total coverage can reach well over $1 million at a single bank, depending on how the accounts are structured.

What happens when a bank fails and you need to recover your money

When an FDIC-member bank fails, the FDIC steps in as the receiver. In most cases, the FDIC arranges for another bank to take over the failed bank's deposits, and your account straightforward moves to the new bank. You keep your debit card, your account number usually stays the same, and you can access your money within one or two business days. This is the most common outcome and usually feels seamless to the customer.

If no other bank takes over the deposits, the FDIC pays you directly. This process typically takes a few weeks. The FDIC sends you a check or deposits the money into an account you specify, up to your coverage limit. If your balance exceeds $250,000 (or the applicable limit for your ownership category), you receive payment for the covered amount, and the uncovered portion is handled as a claim against the failed bank's assets — which often means you recover little or nothing.

The FDIC has a claims process for disputes. If you believe your account was miscategorized or your coverage was calculated incorrectly, you can file a claim with the FDIC. This is rare, but it matters if you have a complex account structure or if the bank's records do not match your understanding of the account ownership.

Accounts and assets the FDIC does not cover

FDIC insurance covers deposits only — the money you put into the bank. It does not cover investment products, even if you buy them through your bank. Stocks, bonds, mutual funds, exchange-traded funds (ETFs), and brokerage accounts are not FDIC-insured. If you have a brokerage account at your bank, those holdings are protected by the Securities Investor Protection Corporation (SIPC) instead, which has different limits and rules.

Safe deposit boxes are not covered by FDIC insurance. The contents of a safe deposit box — jewelry, documents, cash — are not protected if the bank fails. Some people assume their valuables are insured because they are physically in the bank, but that is not how FDIC coverage works. You may be able to insure the contents through a homeowners or renters insurance policy instead.

Money held outside a bank account is not covered. If you keep cash at home, in a safe, or anywhere other than a bank, the FDIC does not protect it. Prepaid cards, gift cards, and stored value cards are also not FDIC-insured, even if they are issued by a bank.

How to verify your bank is FDIC-insured and check your coverage

Before you open an account, confirm the bank is FDIC-insured by searching the FDIC Certificate Lookup tool on the FDIC website. Enter the bank's name and state, and the tool will show you whether it is insured and under what charter. Most banks display an FDIC logo on their website and in their branches, but the official lookup is the only way to be certain.

To calculate your coverage at a bank where you have multiple accounts, add up all accounts in the same ownership category. If you have a checking account and a savings account both in your name alone, the FDIC covers the combined total up to $250,000. If you have a joint account with your spouse, that is a separate category with its own $250,000 limit. The FDIC website has a coverage calculator that walks you through different scenarios.

If you have more than $250,000 at a single bank and want full coverage, you have two options: open accounts at additional FDIC-member banks, or restructure your accounts to use different ownership categories (such as a trust account or retirement account). Many people with substantial savings use a combination of both strategies.

Frequently Asked Questions

If I have $300,000 in checking at one bank, how much is covered?

The FDIC covers $250,000. The remaining $50,000 is not protected. If the bank fails, you would receive $250,000 and lose the other $50,000 unless the bank's assets are sold and generate enough money to pay uncovered depositors — which is uncommon.

Does FDIC coverage explore to money I have in a savings account at the same bank as my checking account?

Yes, but they are combined for coverage purposes. If you have $150,000 in checking and $150,000 in savings at the same bank, both in your name alone, the FDIC covers the full $300,000 because the combined total is $300,000. However, if you had $200,000 in checking and $100,000 in savings, the total would be $300,000 and you would lose $50,000 of coverage.

If my spouse and I have a joint checking account, is each of us covered for $250,000?

Yes. Joint accounts receive $250,000 of coverage per owner. With two owners, the account has $500,000 of total FDIC protection. If the account holds $400,000, both of you are fully covered.

What if my bank is not FDIC-insured?

Your deposits are not protected by the FDIC. Some banks are insured by the National Credit Union Administration (NCUA) instead, which offers similar coverage. Check the FDIC Certificate Lookup to confirm your bank's status before opening an account.

Can I increase my FDIC coverage by opening accounts at online banks?

Yes. Each FDIC-member bank is a separate institution for coverage purposes. If you have $250,000 at a traditional bank and $250,000 at an online bank, both amounts are fully covered as long as both banks are FDIC-insured. You can verify this using the FDIC Certificate Lookup.