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

The Federal Deposit Insurance Corporation insures $250,000 of your money in a savings account at any single bank. That limit applies to you as an individual — not to the account itself. If you have $500,000 in savings at one bank, the FDIC covers $250,000 and you lose the rest if the bank fails.

The $250,000 limit has been in place since 2010. Before that it was $100,000. This amount does not change based on market conditions, interest rates, or how long you have held the account.

The coverage is automatic. You do not need to register, explore, or do anything to set up it. If your bank fails, the FDIC pays you directly up to $250,000 within a few business days, usually by depositing funds into another account you specify or by mailing a check.

Key Takeaways

  • The FDIC insures $250,000 per person, per bank, per account type — meaning you can have $250,000 covered in a savings account and another $250,000 covered in a checking account at the same bank.
  • Money over $250,000 at a single bank is not covered, so splitting deposits across multiple banks is the only way to protect more than $250,000 total.
  • Joint accounts are insured separately: each owner's $250,000 share is covered, so a joint account with two people can hold up to $500,000 in coverage.
  • The FDIC covers the account balance on the day the bank closes, not the highest balance you ever had or the balance on a specific date you choose.

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

You can have multiple accounts at the same bank and each type gets its own $250,000 of coverage. A savings account, a checking account, and a money market account at the same bank are insured separately. You could have $250,000 in each and all three would be fully covered.

Retirement accounts (IRAs, SEP-IRAs, and similar) are also insured separately from regular accounts. An IRA at your bank gets its own $250,000 coverage, distinct from your savings account coverage at that same bank.

Trust accounts and accounts held in the name of a business are separate categories too. The FDIC maintains a full list of account categories, but the ones most people encounter are individual accounts, joint accounts, retirement accounts, and trust accounts.

How joint accounts change the coverage amount

A joint account is insured as $250,000 per owner, not $250,000 total. If you and your spouse have a joint savings account with $500,000, the FDIC covers all $500,000 — $250,000 for you and $250,000 for your spouse.

This applies only if both owners have equal rights to the account. If the account is set up so that one person controls it and the other is just listed, the FDIC may treat it differently. The safest approach is to confirm with your bank that the account is structured as a true joint account with both owners having full access.

If three people own a joint account together, each person's $250,000 is covered separately. A three-person joint account with $750,000 would be fully covered.

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

Money above $250,000 at a single bank is not insured by the FDIC. If your bank fails and you have $400,000 in a savings account, you recover $250,000 and lose $150,000. There is no grace period, no way to move money after the bank closes, and no FDIC fund that covers the overage.

The only way to protect more than $250,000 is to split your money across different banks. $250,000 at Bank A and $250,000 at Bank B means both amounts are fully covered. You can have as many banks as you want, and each one provides a fresh $250,000 of coverage.

Some people use a service called a sweep account or deposit placement service, which automatically moves money across multiple banks to keep each account under the $250,000 limit. Your bank can tell you whether it offers this, though most people straightforward open accounts at a second or third bank themselves.

How the FDIC calculates coverage when a bank closes

The FDIC insures the balance in your account on the day the bank closes, not the highest balance you ever had. If you had $300,000 in your account last month but withdrew $200,000 yesterday, and the bank closes today, the FDIC covers only the $100,000 that remains.

The FDIC also does not cover interest that accrued but was not yet credited to your account. If your savings account earned $500 in interest that was scheduled to post tomorrow, that $500 is not covered separately — it is part of your account balance on the closing date.

Deposits made very close to the bank's closing date may not be covered if the FDIC determines they were made with knowledge that the bank was failing. This is rare and applies only to unusual circumstances, not to normal deposits made in the days before a failure.

Account types that are not FDIC-insured

Savings accounts and checking accounts are covered. Money market accounts held at a bank are covered. Certificates of deposit (CDs) at a bank are covered, and each CD is treated as a separate deposit for coverage purposes — you could have ten $250,000 CDs at one bank and each would be fully insured.

Stocks, bonds, mutual funds, and brokerage accounts are not covered by the FDIC, even if held at a bank. If your bank has a brokerage arm and you buy stocks through it, those stocks are not FDIC-insured. They may be covered by a different insurance system called SIPC (Securities Investor Protection Corporation), but that is a separate program with different limits.

Safe deposit boxes are not insured. The contents of a safe deposit box — cash, jewelry, documents — are not protected if the bank fails. Safe deposit boxes are straightforward a rental service; the bank is not responsible for what is inside.

Frequently Asked Questions

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

The FDIC covers $250,000. The remaining $100,000 is not insured. To protect the full $300,000, you would need to move $50,000 to a savings account at a different bank, leaving $250,000 at each bank.

Does FDIC coverage explore if I have money in multiple branches of the same bank?

No. All branches of the same bank are treated as one bank for FDIC purposes. If you have $150,000 at one branch and $150,000 at another branch of the same bank, the FDIC covers only $250,000 total across both branches, not $250,000 at each branch.

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

No. When one bank acquires another, the FDIC typically extends coverage temporarily so that deposits at the acquired bank that exceed $250,000 remain covered for a period of time (usually six months). After that period, coverage reverts to the standard $250,000 limit. Your bank should notify you of any changes.

Are savings bonds or Treasury bills held at a bank covered by the FDIC?

No. Savings bonds and Treasury securities are not FDIC-insured. They are backed by the U.S. government directly, which is a different form of protection, but the FDIC does not cover them.

If I have a savings account and a checking account at the same bank, is each one covered separately?

Yes. A savings account and a checking account are different account categories, so each has its own $250,000 of FDIC coverage at the same bank. You could have $250,000 in savings and $250,000 in checking at one bank and both amounts would be fully covered.