E*TRADE savings accounts are FDIC insured up to $250,000 per depositor, per bank

Yes. E*TRADE Bank, the subsidiary that holds E*TRADE savings accounts, is an FDIC member. Your deposits are covered under standard FDIC protection: up to $250,000 per depositor, per insured bank, per ownership category.

The key phrase is "per bank". E*TRADE operates as a single FDIC member institution. If you hold a savings account at E*TRADE Bank and also have a checking account there, both balances count toward your single $250,000 limit at that bank. If you have $180,000 in savings and $100,000 in checking at E*TRADE, only $250,000 is insured; the remaining $30,000 is not.

E*TRADE also offers brokerage accounts and investment products. Those are not FDIC insured. Cash held in a brokerage money market fund or sitting in a brokerage cash account is protected by SIPC (Securities Investor Protection Corporation), which is different from FDIC insurance and works differently.

Key Takeaways

  • E*TRADE savings accounts held at E*TRADE Bank are FDIC insured up to $250,000 per depositor.
  • All deposit accounts you hold at E*TRADE Bank—savings, checking, money market—share a single $250,000 insurance limit.
  • E*TRADE brokerage accounts and investment products are not FDIC insured; they are covered by SIPC instead.
  • If you exceed $250,000 in deposits at E*TRADE Bank, the amount over the limit has no federal insurance protection.

How the $250,000 limit works across multiple account types

The FDIC counts all deposits you own at the same bank toward one limit. At E*TRADE Bank, this means your savings account, checking account, money market deposit account, and any certificates of deposit (CDs) all share the $250,000 ceiling.

If you have $150,000 in a savings account and $120,000 in a CD at E*TRADE Bank, the FDIC insures $250,000 total—the full amount of both. If you had $150,000 in savings and $150,000 in a CD, only $250,000 would be insured; the remaining $50,000 in the CD would not be covered.

The ownership category also matters. If you hold an account in your name alone and your spouse holds a separate account in their name alone at the same bank, each of you gets a separate $250,000 limit. A joint account counts as a different ownership category and has its own $250,000 limit. But accounts you own individually and accounts you own jointly do not share a limit—they are insured separately.

E*TRADE brokerage accounts are not FDIC insured

E*TRADE's main business is brokerage—stocks, bonds, mutual funds, options. Money in a brokerage account is not FDIC insured, even if it sits in a cash sweep or money market fund within that account.

Brokerage cash is protected by SIPC (Securities Investor Protection Corporation), a different federal program. SIPC covers up to $500,000 per customer per brokerage firm, with a $250,000 limit on cash specifically. SIPC protection applies if the brokerage firm fails, not if you lose money on an investment. If your brokerage account holds stocks that drop in value, SIPC does not reimburse you.

If you use E*TRADE for both banking (the savings account) and brokerage (stocks and funds), keep the distinction clear. Deposits in the E*TRADE Bank savings account are FDIC insured. Cash or investments in your E*TRADE brokerage account are SIPC protected, which is a different safeguard with different limits.

What happens if your balance exceeds $250,000

If you deposit more than $250,000 at E*TRADE Bank, the FDIC insures only the first $250,000. The remainder is uninsured. If E*TRADE Bank fails, you would recover up to $250,000 and lose the rest.

This is rare. E*TRADE Bank has not failed, and large banks rarely do. But if you have more than $250,000 to deposit and want full FDIC coverage, you have two options: split the deposits across multiple FDIC member banks, or use a service that places your money across multiple banks automatically.

Some online banks and deposit platforms offer "sweep" services that move your money across multiple FDIC member banks so that each bank holds less than $250,000 in your name. This way, all your deposits are insured. E*TRADE does not offer this service for its savings accounts, so if you exceed $250,000, the excess is uninsured.

How to verify FDIC coverage for your E*TRADE account

The FDIC maintains a public database called the FDIC Certificate Lookup where you can search for any bank and see its FDIC member status and certificate number. You can search for "E*TRADE Bank" and confirm it is an active FDIC member.

E*TRADE also displays FDIC insurance information in its account agreements and on its website. When you open a savings account, the disclosure documents will state that deposits are FDIC insured up to $250,000. If you want to know your exact insured amount, you can use the FDIC's online Electronic Deposit Insurance Estimator (EDIE), which calculates coverage based on your account structure and balances.

If you hold accounts at multiple banks or have complex ownership arrangements (joint accounts, trust accounts, retirement accounts), EDIE helps you understand how much is covered at each institution. E*TRADE customer service can also answer questions about your specific account structure and insurance coverage.

Joint accounts and other ownership categories at E*TRADE

If you and another person hold a joint account at E*TRADE Bank, that account is insured separately from accounts either of you holds individually. The joint account gets its own $250,000 limit. If you have $150,000 in an individual savings account and $150,000 in a joint savings account with your spouse, both are fully insured—$150,000 under the individual category and $150,000 under the joint category.

E*TRADE also offers accounts for trusts, IRAs, and other ownership structures. Each category has its own $250,000 limit. An IRA at E*TRADE is insured separately from a regular savings account you hold at the same bank. If you have an IRA with $200,000 and a savings account with $200,000 at E*TRADE Bank, both are fully insured because they fall under different ownership categories.

The FDIC website lists all ownership categories and their coverage limits. If you are unsure how your account is classified, E*TRADE's account documents will specify the ownership category, or you can ask customer service.

Frequently Asked Questions

If E*TRADE Bank fails, how do I get my insured deposits back?

The FDIC takes over the failed bank and either transfers your account to another FDIC member bank or pays you directly. In most cases, you regain access to your insured deposits within a few business days. The FDIC has a claims process if payment is delayed, but historically this has been rare for large institutions.

Does FDIC insurance cover money I lose on investments?

No. FDIC insurance covers deposits—money you place in savings accounts, checking accounts, and CDs. It does not cover losses on stocks, bonds, mutual funds, or other investments. If you buy a stock through E*TRADE's brokerage and it drops in value, FDIC insurance does not explore. Brokerage investments are covered by SIPC only if the brokerage firm fails.

Can I get more than $250,000 insured at E*TRADE?

Not through E*TRADE directly. E*TRADE does not sweep deposits across multiple banks. If you have more than $250,000, you would need to open accounts at other FDIC member banks to insure the excess, or use a third-party service that places deposits across multiple banks automatically.

Is money in my E*TRADE brokerage account insured if I keep it in cash?

Cash in a brokerage account is covered by SIPC, not FDIC. SIPC covers up to $500,000 per customer per firm, with a $250,000 limit on cash. This is different from FDIC coverage and applies only if the brokerage firm fails, not if you lose money on investments.

What if I have both a savings account and a CD at E*TRADE Bank?

Both count toward your single $250,000 FDIC limit at E*TRADE Bank. If your savings account has $180,000 and your CD has $100,000, the FDIC insures $250,000 total. The remaining $30,000 in the CD is uninsured. You can verify your total insured amount using the FDIC's EDIE tool.