Yes, money market accounts at banks are FDIC insured up to $250,000

A money market account at a bank is covered by FDIC insurance the same way a regular savings account is. If the bank fails, the FDIC will reimburse you up to $250,000 in that account. The catch is that money market accounts at investment firms or brokerage companies are not FDIC insured — only the ones held at actual banks get this protection.

The $250,000 limit applies to each account holder at each bank. If you have a money market account and a savings account at the same bank under your own name, they share that $250,000 limit. If you have accounts at two different banks, each bank's accounts are insured separately up to $250,000.

Money market accounts are insured because they are deposit accounts — you are putting money in and the bank is holding it. The FDIC does not care whether the account earns 0.01% or 5% interest. It does not matter whether the account is called a money market account, savings account, or checking account. If it is a deposit account at an FDIC-insured bank, it is covered.

Key Takeaways

  • Money market accounts at banks are FDIC insured up to $250,000 per account holder per bank, the same as savings accounts.
  • Money market accounts at investment firms, brokerage companies, or credit unions are not FDIC insured, though credit unions have a similar program called NCUA insurance.
  • If you have multiple deposit accounts at the same bank under your own name, they all share the $250,000 insurance limit combined.
  • The interest rate on a money market account does not affect whether it is insured — FDIC coverage applies to all deposit accounts at member banks.

How to tell if your money market account is actually FDIC insured

The only way to know for certain is to check whether your bank is FDIC insured. You can search the FDIC's bank database at banks.fdic.gov by entering your bank's name. If it appears in the results, your money market account there is covered.

Most traditional banks — Bank of America, Wells Fargo, Chase, regional banks, and local community banks — are FDIC insured. Online banks like Ally, Marcus, and Discover are also FDIC insured. But investment platforms like Fidelity, Charles Schwab, or Vanguard are not, even if they offer money market accounts. If you open a money market account through an investment firm, that account is not FDIC insured unless the firm has partnered with an FDIC-insured bank to hold the money.

Credit unions offer money market accounts too, but they are insured by the NCUA (National Credit Union Administration), not the FDIC. NCUA insurance works the same way — up to $250,000 per account holder per credit union — but it is a separate system.

What happens to your money if the bank fails

If your bank fails, the FDIC steps in and pays you directly. You do not have to file a claim or wait for a hearing. The FDIC typically deposits the insured amount into an account at another bank within a few business days. You will receive a letter from the FDIC explaining what happened and how much you are receiving.

If your money market account balance is under $250,000, you get all of it back. If it is over $250,000, you lose the amount above the limit. This is why people with large sums sometimes split their money across multiple banks — each bank's accounts are insured separately.

Bank failures are rare in the United States. The FDIC has been insuring deposits since 1933, and the insurance fund is backed by the federal government. You are not betting on the FDIC's solvency — you are protected by law.

Money market accounts versus money market funds

The name is confusing because there are two different things. A money market account is a bank deposit account, and it is FDIC insured. A money market fund is an investment product sold by brokerage firms and investment companies, and it is not FDIC insured.

Money market funds are regulated by the Securities and Exchange Commission (SEC), not the FDIC. They invest your money in short-term debt securities like Treasury bills and commercial paper. The value can fluctuate slightly, though it is designed to stay close to $1 per share. If the fund's investments lose value, you lose money — the government does not reimburse you.

If you see "money market" offered through an investment platform, ask whether it is a money market account or a money market fund. The difference in insurance protection is significant.

Interest rates and FDIC insurance

Money market accounts often offer higher interest rates than regular savings accounts because they require a larger minimum deposit and sometimes limit how many withdrawals you can make per month. The higher rate does not change the insurance coverage — you are still protected up to $250,000 regardless of the interest rate.

When comparing money market accounts, check both the interest rate and the minimum deposit required. Some banks offer competitive rates with low minimums; others require $25,000 or more to open the account. The FDIC insurance limit is the same either way.

Joint accounts and FDIC insurance limits

If you have a money market account with another person as a joint account holder, the insurance limit is $250,000 per person, not per account. This means a joint account is insured for up to $500,000 total — $250,000 for you and $250,000 for the other person.

If you are the sole owner of one money market account and a joint owner of another at the same bank, those two accounts are insured separately. The sole account is covered up to $250,000, and the joint account is covered up to $500,000. This structure allows people with significant savings to protect more money at a single bank.

Frequently Asked Questions

Is my money market account insured if the bank is FDIC insured but the account is not in my name?

No. FDIC insurance protects the account owner, not the bank. If someone else owns the account, that person's $250,000 limit applies. If you have money in an account owned by someone else, it is not insured under your name.

What if I have a money market account and a checking account at the same FDIC bank?

They share the $250,000 limit. If your checking account has $100,000 and your money market account has $200,000, only $150,000 of the money market account is insured. The total insured across both accounts is $250,000.

Do I need to do anything to make sure my money market account is FDIC insured?

No. If you open a money market account at an FDIC-insured bank, you are automatically covered. You do not need to register, pay a fee, or take any action. The insurance is built in.

Can I get FDIC insurance on a money market account at an investment company?

Not directly. Some investment companies partner with FDIC-insured banks to hold customer deposits. Ask your investment firm whether they use a bank partner and whether your money market account is held at that bank. If it is, it will be FDIC insured.

What if my money market account earns so much interest that it goes over $250,000?

The interest you earn is covered by FDIC insurance as long as the total balance stays under $250,000. If your balance exceeds $250,000, only the first $250,000 is insured. The excess is not protected.