Yes, money market savings accounts held at FDIC-insured banks are covered up to $250,000 per depositor per bank

A money market savings account is a deposit account that combines features of a savings account with limited check-writing or debit card access. The FDIC insures these accounts the same way it insures regular savings accounts — up to $250,000 per person, per bank, per ownership category. The coverage applies to the account balance and any accrued interest as of the date the bank fails.

The key word is "per bank". If you hold a money market account at Bank A and another at Bank B, each account is insured separately up to $250,000. If you hold two money market accounts at the same bank under the same name, the FDIC combines them and insures the total up to $250,000 across both.

Money market accounts are not the same as money market mutual funds. A mutual fund is not a bank deposit and carries no FDIC insurance, even if it holds money market instruments. The difference matters: if you see "money market" in the name, check whether it is offered by a bank (insured) or an investment firm (not insured).

Key Takeaways

  • Money market savings accounts at FDIC-insured banks are covered up to $250,000 per depositor per bank, the same as regular savings accounts.
  • Multiple money market accounts at the same bank under the same name are combined for insurance purposes, so the total coverage across all of them is $250,000, not $250,000 per account.
  • Money market accounts held at the same bank but under different ownership categories — such as one in your name alone and one in a joint account — are insured separately.
  • Money market mutual funds sold by investment firms are not bank deposits and have no FDIC insurance, even though they may have "money market" in the name.

How FDIC coverage works for money market accounts

The FDIC insures money market savings accounts based on the account holder's name and the ownership structure. If the account is in your name alone, your coverage is $250,000. If the account is a joint account with another person, the joint account is insured separately up to $250,000 for the account as a whole — not $250,000 per person.

The insurance covers the principal balance plus any interest earned up to the moment the bank fails. If your money market account has $200,000 and earns $500 in interest before the bank closes, the FDIC covers all $200,500. Interest accrued after the failure date is not covered.

Coverage is automatic. You do not need to register, explore, or do anything to set up FDIC insurance on a money market account. If the bank is FDIC-insured, the account is covered. You can verify a bank's FDIC status on the FDIC's website using their Bank Find tool, which shows whether a specific institution carries insurance.

When coverage limits matter for money market accounts

If you have more than $250,000 to deposit, you can spread the money across multiple FDIC-insured banks to keep all of it covered. For example, $250,000 in a money market account at Bank A and $250,000 at Bank B means both amounts are fully insured. The same $500,000 in a single money market account at one bank means only $250,000 is covered.

Some people use money market accounts as a place to hold cash while deciding where to invest it. If you are holding more than $250,000 in cash temporarily, moving the excess to a second bank protects it. Money market accounts typically pay interest rates higher than regular savings accounts, so they can be a practical holding place for larger sums.

Joint accounts have their own coverage limit. If you and a spouse each have a money market account in your individual names at the same bank, each account is insured up to $250,000. If you have a joint money market account together, that joint account is insured up to $250,000 as a separate entity. You could have $250,000 in your individual account, $250,000 in your spouse's individual account, and $250,000 in a joint account at the same bank, and all three would be fully covered.

Money market accounts versus money market funds

A money market savings account is a bank product. A money market mutual fund is an investment product. The names are similar, which creates confusion, but the insurance treatment is completely different.

Money market savings accounts are FDIC-insured deposits. Money market mutual funds are securities issued by investment companies and are not bank deposits. They are not FDIC-insured. If the investment company fails, your money in a money market fund is not protected by the FDIC. Money market funds may be protected by the Securities Investor Protection Corporation (SIPC) if the investment firm fails, but SIPC coverage works differently and has different limits.

If you are shopping for a place to keep cash and you see "money market" in the product name, ask the bank or firm directly: "Is this a bank deposit account or an investment fund?" The answer tells you whether FDIC insurance applies.

What happens if the bank fails

If an FDIC-insured bank fails, the FDIC steps in as the insurer. The agency typically arranges for another bank to take over the failed bank's deposits, and your money market account transfers to the new bank automatically. You keep your account, your balance, and your accrued interest up to the $250,000 limit.

If your balance exceeds $250,000, the FDIC pays out the insured amount ($250,000) and you become a creditor for the uninsured portion. In practice, bank failures are rare and most uninsured deposits are recovered eventually, but there is no may provide.

The FDIC has a claims process if a bank fails and no successor bank takes over your account. You would file a claim with the FDIC to receive your insured funds. The agency typically resolves claims within a few business days, though the exact timeline depends on the complexity of the failure.

Checking whether your bank is FDIC-insured

Not all banks are FDIC-insured. Most traditional banks and credit unions are, but some online banks, foreign banks operating in the US, and investment-only firms are not. Before opening a money market account, confirm the institution carries FDIC insurance.

Use the FDIC's Bank Find tool on their website. Enter the bank's name and state, and the tool shows whether it is insured, the insurance certificate number, and which branches are covered. If a bank is not listed, it is not FDIC-insured.

Some banks are insured by the National Credit Union Administration (NCUA) instead of the FDIC. Credit unions typically use NCUA insurance, which works similarly to FDIC insurance but is a separate program. NCUA coverage is also $250,000 per depositor per credit union per ownership category.

Frequently Asked Questions

If I have $300,000 in a money market account at one bank, how much is insured?

Only $250,000 is FDIC-insured. The remaining $50,000 is uninsured. If you want all $300,000 covered, move $50,000 to a money market account at a different FDIC-insured bank.

Does FDIC insurance cover money market accounts at online banks?

Yes, if the online bank is FDIC-insured. Most major online banks carry FDIC insurance. Check the bank's website or use the FDIC Bank Find tool to confirm. The coverage limit and rules are the same as for traditional banks.

Are money market accounts safer than regular savings accounts?

Both are equally safe from an FDIC insurance perspective — both are covered up to $250,000. Money market accounts typically pay higher interest rates, which is the main practical difference. The trade-off is that money market accounts may have higher minimum balances or limit how often you can withdraw.

What if I have a money market account in my name and another in a joint account with my spouse at the same bank?

Each account is insured separately. Your individual account is covered up to $250,000, and the joint account is covered up to $250,000 as a separate entity. The two accounts do not count against each other for insurance purposes.

Can I move money between banks to keep all of it insured?

Yes. You can open money market accounts at multiple FDIC-insured banks and divide your deposits so each account stays under $250,000. Each bank's account is insured independently, so this strategy protects larger amounts of cash.