Where to look for FDIC-insured savings accounts
FDIC-insured savings accounts exist at two types of places: traditional banks and online banks. Both are equally protected by FDIC insurance — the protection comes from the FDIC itself, not from how fancy the bank's building is. The difference is in how you access your money and what interest rate you earn.
Traditional banks have physical branches where you can walk in, talk to a person, and deposit cash or checks by hand. Online banks have no branches — you do everything through a website or app, and you deposit checks by taking a photo with your phone. Online banks usually pay higher interest rates because they have lower costs. Traditional banks usually pay lower rates but offer the convenience of a nearby location.
To find out whether a bank is FDIC-insured before you open an account, use the FDIC's official search tool at banks.fdic.gov. Type in the bank's name and your state. If it shows up in the results, it is FDIC-insured. If it does not show up, do not open an account there — your money will not be protected.
Key Takeaways
- Use the FDIC's official search tool at banks.fdic.gov to confirm a bank is FDIC-insured before you open an account.
- Traditional banks with branches usually pay lower interest but let you deposit cash in person; online banks pay higher interest but require phone or photo deposits.
- FDIC insurance covers up to $250,000 per account type at each bank, so if you have more than that, you need accounts at different banks or different account types.
- Savings accounts, money market accounts, and certificates of deposit are all FDIC-insured at participating banks, but regular checking accounts are too.
- Credit unions use a different insurance system called NCUA, not FDIC, so check which one protects your money before you join.
How to compare interest rates across banks
Interest rates on savings accounts change constantly, sometimes weekly. A rate that is high today may not be high next month. Rather than memorizing rates, learn where to look so you can check whenever you are ready to open an account.
Websites like Bankrate, DepositAccounts, and NerdWallet let you filter by account type and sort by interest rate. These sites do not sell the accounts — they just show you what is available. You still open the account directly with the bank. When you find a rate you like, visit the bank's own website to open the account there, not through the comparison site. This protects you if something goes wrong.
Pay attention to the difference between the APY (annual percentage yield) and the APR (annual percentage rate). APY is what you actually earn because it includes compounding — interest earning interest. APR does not include compounding. Always compare APYs, not APRs, when you are looking at savings accounts.
Understanding account types and their FDIC coverage
FDIC insurance covers different account types separately. This means if you have a savings account and a checking account at the same bank, each one is covered up to $250,000. If you have two savings accounts at the same bank, they are added together and covered as one account type, so you only get $250,000 total for both.
The main account types that are FDIC-insured are savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). Each type is covered separately. If you have more than $250,000 to protect, you can spread it across different account types at the same bank, or open accounts at different banks.
Joint accounts — accounts owned by two people together — are also covered separately. A joint savings account is covered up to $250,000, and each owner's individual savings account at the same bank is covered up to $250,000 more. This is useful for couples who want to protect more money.
What to do if a bank is not FDIC-insured
If you search a bank on banks.fdic.gov and it does not appear, that bank is not FDIC-insured. This does not mean the bank is bad or illegal — it means your deposits are not protected by federal insurance if the bank fails. Some banks choose not to carry FDIC insurance, and some types of financial institutions (like credit unions) use different insurance.
Credit unions use NCUA insurance instead of FDIC insurance. NCUA stands for National Credit Union Administration. The coverage works the same way — up to $250,000 per account type — but it is a separate system. If you are joining a credit union, check that it is NCUA-insured by searching at mycreditunion.gov.
If you find a bank that is not FDIC-insured and you want to use it anyway, keep your balance under the amount that would hurt you if the bank failed. Many people use non-insured banks for checking accounts where they keep only the money they need for when ready spending, and keep their savings at an FDIC-insured bank.
Opening an account online versus in person
Opening an account online takes 10 to 20 minutes and requires a computer or phone, a valid ID, and a way to verify your identity (usually a phone number or email). You can start the process at night or on a weekend. The bank will ask for your Social Security number, address, and employment information. Most online accounts are ready to use the same day or the next business day.
Opening an account in person at a branch takes longer — usually 30 minutes to an hour — but you can ask questions and get help on the spot. You will need to bring a government-issued ID and sometimes a second form of ID. The account is usually ready when ready, and you can deposit cash right away.
If you are new to banking or uncomfortable with technology, opening in person at a branch may feel safer. If you want a higher interest rate and do not need to deposit cash often, opening online is usually the better choice. Many people do both — they keep a checking account at a local branch for cash deposits and a savings account at an online bank for better interest.
What documents you will need
Every bank will ask for the same basic information, whether you open in person or online. You will need a valid government-issued ID (driver's license, passport, or state ID card), your Social Security number, your current address, and your phone number. Some banks also ask for employment information or your income.
If you are opening a joint account with another person, both owners will need to provide ID and Social Security numbers. If you are opening an account for a child, you will need the child's Social Security number and your own ID, but the child does not need to be present.
Bring or have ready any documents that prove your address if the one on your ID is old — a recent utility bill, lease, or bank statement works. Most banks will not ask for this, but having it ready saves time if they do.
Frequently Asked Questions
Can I have FDIC insurance at more than one bank?
Yes. FDIC insurance is per bank, not per person. You can have a $250,000 savings account at Bank A and a $250,000 savings account at Bank B, and both are fully covered. This is a common strategy for people with large amounts to protect.
Does FDIC insurance cover money I lose to fraud or theft?
No. FDIC insurance only covers money lost if the bank itself fails. If someone steals your password and empties your account, that is a different problem. Banks have fraud protection rules, and you have rights under federal law, but FDIC insurance does not explore. Report fraud to your bank when ready.
What happens to my money if the bank fails?
The FDIC takes over the bank and transfers your account to another FDIC-insured bank, usually within a few business days. You keep your money and your account number stays the same. You may not be able to access your account for a day or two during the transfer, but your money is safe.
Is an online bank as safe as a traditional bank?
If the online bank is FDIC-insured, your deposits are equally protected. The FDIC does not care whether the bank has branches or not. The only difference is that you cannot walk in and talk to someone in person, and you cannot deposit cash by hand. Everything else — safety, insurance, and access to your money — is the same.
What if I want to move my money to a different bank?
You can close your account and withdraw your money anytime, with no penalty on a savings account. Some banks charge early withdrawal penalties on certificates of deposit if you take the money out before the term ends. You can also transfer money between banks electronically using your account and routing numbers, which usually takes one to three business days.