How Much Money the FDIC Actually Protects in Your Savings Account

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

The Federal Deposit Insurance Corporation (FDIC) protects $250,000 of your money in each savings account you own at a single bank. That means if the bank fails, you get that amount back — the FDIC pays it, not the bank. If you have $250,000 or less in a savings account at one bank, all of it is covered. If you have $300,000, the FDIC covers $250,000 and you lose $50,000.

The $250,000 limit applies to each ownership category separately. This is the part that confuses most people. You can have more than $250,000 protected at the same bank if the money is held in different ways — for example, a savings account in your name alone is separate from a joint savings account you share with your spouse, which is separate from a savings account you hold as a trustee for your child.

The coverage is per bank, not per account. If you have three savings accounts at the same bank, the FDIC adds them together and covers up to $250,000 total across all three. If you want to protect more than $250,000 of your own money, you need to split it between different banks.

Key Takeaways

The FDIC covers $250,000 per person, per bank in savings accounts, and the same limit applies to checking accounts, money market accounts, and certificates of deposit.
If you have multiple accounts at the same bank in your name alone, the FDIC adds them together and covers $250,000 total, not $250,000 per account.
Joint accounts, trust accounts, and retirement accounts are each covered separately up to $250,000, so you can protect more than $250,000 at one bank by using different ownership categories.
The $250,000 limit has been in place since 2010 and applies to all FDIC-insured banks, though some banks may offer additional coverage through private insurance.

How the $250,000 limit works across multiple accounts at one bank

If you have a savings account with $150,000 and a checking account with $120,000 at the same bank, the FDIC treats them as one combined balance of $270,000. It covers $250,000 and leaves $20,000 unprotected. The FDIC does not care which account the money is in — it adds up all accounts in your name at that bank and applies the $250,000 limit to the total.

This is why people who want to protect large amounts of money often use multiple banks. If you have $500,000 in savings, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. Each bank is a separate entity, so the $250,000 limit resets at each one.

Certificates of deposit (CDs), money market accounts, and checking accounts all count toward the same $250,000 limit as your savings account. The FDIC groups them together because they are all deposit accounts at the same bank in your name. Only retirement accounts and joint accounts break out into their own separate $250,000 limits.

Different ownership categories each get their own $250,000 coverage

The FDIC recognizes several different ways you can own an account, and each way is covered separately. A savings account in your name alone is one category. A joint savings account you share with your spouse is a different category. A savings account you hold as trustee for your child is yet another. Each category gets its own $250,000 limit at the same bank.

This means you can have $250,000 in a personal savings account, $250,000 in a joint account with your spouse, and $250,000 in a trust account for your child — all at the same bank — and all $750,000 would be covered. The bank is the same, but the ownership structure is different, so the FDIC treats them as separate accounts for coverage purposes.

Retirement accounts like traditional IRAs and Roth IRAs are also in their own category. An IRA at Bank A is covered up to $250,000 separately from your personal savings account at Bank A. This applies to SEP IRAs and other retirement account types as well.

What happens if your balance exceeds $250,000

If you have $300,000 in a savings account at one bank and the bank fails, the FDIC pays you $250,000. The remaining $100,000 is not covered. You would need to file a claim with the FDIC to receive your $250,000, though in practice the FDIC usually transfers your account to another bank and you keep access to your money within a few business days.

The uninsured portion does not disappear when ready. If the bank is sold to another bank, the new bank may honor the full balance. But you cannot count on that — the FDIC's may provide is only $250,000, and anything above that is at risk if the bank fails.

This is why the $250,000 limit matters most to people with substantial savings. If you have $50,000 in a savings account, you are fully covered and do not need to think about it. If you have $500,000 or more, you need to actively manage which banks hold your money to make sure each bank holds no more than $250,000 in your name.

How to track your coverage across multiple banks

The FDIC website has a tool called the FDIC Coverage Calculator that lets you enter your accounts and see how much is covered. You tell it which banks you use, what type of account each one is, and how much money is in each, and it shows you the covered and uncovered amounts. This is the most reliable way to check if you are within the limits.

You can also call your bank and ask directly. The bank's customer service team can tell you what the FDIC covers for your specific accounts. Some banks also show coverage information in their online banking portal or in account statements.

If you are moving money between banks to stay within the $250,000 limit, keep records of which bank holds which account. It is straightforward to lose track when you have accounts at three or four different banks, and you want to know at a glance whether you are covered.

Coverage limits for joint accounts and trust accounts

A joint account — one you share with another person — is covered up to $250,000 per owner. If you and your spouse have a joint savings account with $400,000, the FDIC covers $250,000 in your name and $250,000 in your spouse's name, for a total of $500,000 covered. The account is at one bank, but because there are two owners, the coverage is higher.

A trust account — one you hold as trustee for a beneficiary — is also covered separately. If you are the trustee of a trust account for your child with $250,000, and you also have a personal savings account with $250,000 at the same bank, both are fully covered. The trust account is a different ownership category.

Payable-on-death (POD) accounts work similarly. If you name a beneficiary on a savings account, the FDIC covers $250,000 for you and $250,000 for each named beneficiary, up to five beneficiaries. This is a way to protect more money at a single bank if you are planning for what happens after you die.

When coverage limits changed and why

The FDIC raised the coverage limit to $250,000 in 2010 during the financial crisis, when many people were worried about bank failures. Before that, the limit was $100,000. The $250,000 limit has stayed in place since then and applies to all FDIC-insured banks.

The limit is set by Congress, not by the FDIC, so it can change only if lawmakers vote to change it. There is no set schedule for reviews or increases. The current $250,000 limit has been stable for over a decade.

Frequently Asked Questions

Does FDIC coverage explore to money market accounts?

Yes. Money market accounts are covered the same way as savings accounts — up to $250,000 per person, per bank. If you have both a savings account and a money market account at the same bank in your name, the FDIC adds them together and covers $250,000 total across both.

What if I have accounts at the same bank under different names, like my maiden name and married name?

The FDIC treats them as the same person. If you have an account under your maiden name and another under your married name at the same bank, the FDIC adds them together for the $250,000 limit. You would need to use different banks to protect more than $250,000 in your name.

Are savings accounts at credit unions covered the same way?

Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC, but the coverage limit is the same: $250,000 per person, per credit union. The rules work the same way — multiple accounts at one credit union are added together, and different ownership categories each get their own $250,000 limit.

If I have $300,000 and split it between two banks, am I fully covered?

Yes. If you put $250,000 at Bank A and $50,000 at Bank B, both amounts are covered. Each bank is separate, so the $250,000 limit applies at each one. You are fully protected as long as no single bank holds more than $250,000 in your name.

Does FDIC coverage include investment accounts or stocks?

No. The FDIC covers only deposit accounts — savings accounts, checking accounts, money market accounts, and CDs. Stocks, bonds, mutual funds, and brokerage accounts are not covered by the FDIC. Brokerage accounts have their own insurance through SIPC, which is different.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.