Most checking accounts are FDIC insured, but not all of them, and not all the money in them

Your checking account is FDIC insured if your bank is an FDIC member — and most banks are. But FDIC insurance does not protect every dollar you keep there. The insurance covers up to $250,000 per depositor, per bank, per account type. If you have more than that in one checking account at one bank, the amount over $250,000 is not protected if the bank fails.

The key word is per bank. If you have $200,000 in checking at Bank A and $200,000 in checking at Bank B, both are fully covered because they are at different banks. But if you have $300,000 in one checking account at one bank, only $250,000 is insured.

Some accounts are not FDIC insured at all. Money market accounts, savings accounts, and checking accounts all get the same $250,000 limit, but they are counted separately. Investment accounts, brokerage accounts, and cryptocurrency held by a bank are not FDIC insured. Neither is money you lend to the bank through a CD or money market account that the bank then invests — wait, that is wrong. CDs and money market accounts are FDIC insured up to $250,000 each, separate from checking.

Key Takeaways

  • FDIC insurance covers up to $250,000 per person, per bank, per account type — so $250,000 in checking and $250,000 in savings at the same bank are both covered.
  • You can check whether your bank is FDIC insured by searching the FDIC's Bank Find tool on fdic.gov, which takes 30 seconds.
  • Money in investment accounts, brokerage accounts, and cryptocurrency wallets held by a bank is not FDIC insured, even if the bank itself is.
  • If you have more than $250,000 at one bank, you can split it across multiple account types (checking, savings, money market, CD) to protect more of it.
  • FDIC insurance is automatic — you do not have to sign up, pay a fee, or do anything to set up it.

How to check if your bank is FDIC insured

The FDIC publishes a searchable list of all member banks on its website at fdic.gov/BankFind. Type in your bank's name or your city, and the tool will show you whether it is insured and under what name it is insured (this matters if your bank was bought by another bank).

If your bank does not appear in the search, it is not FDIC insured. This is most common with credit unions (which are insured by the NCUA, not the FDIC, up to the same $250,000 limit), online banks that are not FDIC members, and some very small or very new banks.

You can also call your bank's customer service line and ask directly. They can tell you the FDIC certificate number, which is the official proof that they are insured.

What FDIC insurance actually covers and what it does not

FDIC insurance covers money you have deposited in the bank — checking, savings, money market accounts, and CDs. It covers the balance as of the day the bank fails, not the balance you think you have if you have not checked recently. It covers interest that has been added to your account. It does not cover fees the bank charged you.

FDIC insurance does not cover stocks, bonds, mutual funds, or any investment you bought through the bank. It does not cover safe deposit boxes or anything inside them. It does not cover wire transfers that have already left the bank. It does not cover money you lent to someone else, even if the bank is holding it in an account in your name.

If you have a joint account with someone else, you each get your own $250,000 of coverage. So a joint checking account with $500,000 in it is fully covered — $250,000 for you and $250,000 for the other person. This is one reason people with large balances sometimes open joint accounts with family members.

Account types and how they affect your coverage

The FDIC counts different account types separately for insurance purposes. This means you can have $250,000 in a checking account, $250,000 in a savings account, $250,000 in a money market account, and $250,000 in a CD, all at the same bank, and all of it is covered.

A retirement account (IRA, Roth IRA, SEP-IRA) is also counted separately and gets its own $250,000 of coverage. A trust account gets its own coverage too, though the rules are more complex — generally, each beneficiary of the trust gets $250,000 of coverage.

A business checking account is counted separately from your personal checking account, even at the same bank. So if you are a sole proprietor with a personal checking account and a business checking account, each one gets $250,000 of coverage.

What happens if your bank fails

If your bank fails, the FDIC takes over and pays out insured deposits. In most cases, you have access to your money within one to three business days — the FDIC transfers your account to another bank, or sends you a check. You do not have to do anything; the FDIC finds you using the contact information the bank has on file.

If your balance is over $250,000, you will receive the insured amount ($250,000) quickly. The uninsured amount goes into the bank's liquidation process, which can take months or years. You may recover some of it, but there is no may provide.

Bank failures are rare. The FDIC has insured deposits since 1933, and in that time, no depositor with insured funds has lost money due to a bank failure.

How to protect money over $250,000

If you have more than $250,000, you have several options. The simplest is to split your money across multiple banks. $250,000 at Bank A and $250,000 at Bank B are both fully covered.

You can also use different account types at the same bank. Put $250,000 in checking, $250,000 in savings, $250,000 in a money market account, and $250,000 in a CD — all at the same bank, all fully covered.

If you have a spouse or partner, you can open a joint account. A joint checking account gives you both $250,000 of coverage, so the account can hold $500,000 and be fully insured. This works only if both people have equal ownership rights to the account.

You can also open a trust account and name beneficiaries. Each beneficiary gets $250,000 of coverage, so a trust account with three beneficiaries can hold $750,000 and be fully insured. This is more complex and usually requires a lawyer to set up correctly.

Online banks and FDIC insurance

Online banks are FDIC insured if they are FDIC members, which most of them are. Check the Bank Find tool to confirm. Online banks often advertise their FDIC status prominently because it is a major selling point — they have no physical branches, so insurance is the main safety feature customers can see.

The FDIC insurance limit is the same for online banks as for traditional banks: $250,000 per account type. Online banks sometimes offer higher interest rates on savings accounts and money market accounts, which can make them a good place to keep money you want to protect while earning a return.

Frequently Asked Questions

If I have $300,000 in checking, will I lose $50,000 if the bank fails?

Yes. FDIC insurance covers only $250,000 per account type per bank. The remaining $50,000 is uninsured and would go into the bank's liquidation process. You might recover some of it eventually, but there is no may provide. To protect all $300,000, split it across two banks or move $50,000 into a different account type (like savings) at the same bank.

Does FDIC insurance cover money I have in a brokerage account at my bank?

No. Brokerage accounts, investment accounts, and stocks or mutual funds you own are not FDIC insured, even if you bought them through an FDIC member bank. Brokerage accounts are insured by SIPC (Securities Investor Protection Corporation) up to $500,000 per account, but that is a different type of insurance with different rules.

If I move money between banks, do I lose coverage during the transfer?

No. Money in transit is still covered by FDIC insurance at the bank it came from until it arrives at the new bank. Once it arrives, it is covered by the new bank's FDIC insurance. There is no gap in coverage.

Does my credit union account have the same insurance as my bank account?

Credit unions are insured by the NCUA, not the FDIC, but the coverage is the same: $250,000 per account type per institution. The rules are nearly identical, so your credit union account is protected the same way as a bank account.

If my bank is bought by another bank, do I lose FDIC coverage?

No. Your coverage continues under the new bank's FDIC insurance. The new bank becomes the insured institution, but your $250,000 limit stays the same. You can check the Bank Find tool to see the current insured name if you are unsure.