Most savings accounts at banks are FDIC insured, but not all accounts and not all institutions may have access to

If your savings account is held at a bank that displays the FDIC logo or mentions FDIC insurance in its disclosures, your deposits are covered up to $250,000 per depositor, per bank, per ownership category. The FDIC (Federal Deposit Insurance Corporation) insures deposits automatically — you do not need to sign up or pay a fee. But the protection only works if your bank is actually FDIC insured, and only up to the limit. Accounts at credit unions, investment firms, and some online banks may not be covered at all.

The key question is whether your institution is an FDIC member bank. Many people assume all banks are insured, but some online lenders, fintech companies, and smaller institutions operate without FDIC membership. Knowing whether you are covered takes five minutes and removes a major source of financial risk.

Key Takeaways

  • FDIC insurance covers up to $250,000 per person per bank, and it applies automatically to most savings accounts without any action on your part.
  • Credit unions are insured by the NCUA, not the FDIC, and the coverage limit and rules are slightly different.
  • Money market accounts, savings accounts, and checking accounts are all covered; brokerage accounts and investment products are not.
  • If you have more than $250,000 at one bank, you can protect the excess by opening accounts in different ownership categories (joint account, retirement account, trust account).
  • You can check whether your bank is FDIC insured by searching the FDIC's BankFind tool on its website.

How to verify your bank is FDIC insured

The simplest way is to look for the FDIC logo on your bank's website or statements. If it is there, the bank is insured. If you are unsure, use the FDIC's BankFind tool at fdic.gov/BankFind. Type in your bank's name and state, and the tool will tell you whether it is insured, what its official name is for insurance purposes, and when it was last examined.

Do not rely on the bank's name alone. Some banks use names that sound official but are not FDIC members. For example, a bank called "First National Bank of [City]" might be FDIC insured, but a company called "National Bank" or "First Bank" might not be. The BankFind tool removes the guesswork. If your bank is not in the tool, it is not FDIC insured. That does not mean it is unsafe — it may be insured by another agency or may have other protections — but your deposits are not covered by the FDIC's $250,000 may provide.

What the $250,000 limit actually covers

The $250,000 limit is per depositor, per bank, per ownership category. That means if you have $300,000 at one FDIC bank, only $250,000 is insured and $50,000 is at risk if the bank fails. But if you have $300,000 split across two different FDIC banks, both accounts are fully insured.

Ownership category matters. A joint account with your spouse is insured separately from your individual account at the same bank. A retirement account (IRA, SEP-IRA, straightforward IRA) is insured separately from a regular savings account. A revocable trust account is insured separately. This means you can have multiple $250,000 protections at the same bank if the money is in different categories. Accounts in the same category at the same bank are added together for the limit. If you have two savings accounts at the same bank in your name alone, the FDIC adds them together and insures only $250,000 of the total.

Accounts and products that are not FDIC insured

Savings accounts, checking accounts, and money market accounts are covered. Certificates of deposit (CDs) are covered. But brokerage accounts, stocks, bonds, mutual funds, and investment products are not covered by the FDIC, even if they are held at an FDIC bank. If you buy stocks through your bank's investment division, those stocks are not insured.

Safe deposit boxes are not insured. The contents inside — jewelry, documents, cash — are your responsibility. Some homeowners or renters insurance policies cover safe deposit box contents, but the FDIC does not. Savings bonds, Treasury bills, and other government securities are not FDIC insured because they are backed by the U.S. government directly, not by the FDIC.

Credit unions and NCUA insurance instead of FDIC

Credit unions are insured by the NCUA (National Credit Union Administration), not the FDIC. The coverage limit is the same — $250,000 per member, per credit union, per ownership category — and the protection works the same way. You do not need to do anything; it is automatic.

The main difference is that NCUA insurance applies only to credit unions, and you can check whether a credit union is insured by searching the NCUA's Credit Union Locator at ncua.gov. Most credit unions are NCUA insured, but it is worth confirming if you are moving money to a new institution. The NCUA operates under the same principles as the FDIC, so if you understand one system, the other works the same way.

What happens if your bank fails

If an FDIC bank fails, the FDIC steps in and either arranges for another bank to take over the deposits or pays you directly. In most cases, you have access to your insured funds within a few business days. The FDIC has a track record of paying out insured deposits quickly — in recent years, the average time has been less than a week.

You will receive a letter from the FDIC or the acquiring bank telling you what happened and how to access your money. If your account was over $250,000, you will be paid the insured amount first, and the FDIC will work with you on the uninsured portion (though recovery of uninsured funds is not may provide). The process is designed to be straightforward, and the FDIC maintains a dedicated customer service line during bank failures.

How to structure accounts if you have more than $250,000

If you have more than $250,000 to save, you have several options. The simplest is to split the money across multiple FDIC banks. Open a savings account at Bank A with $250,000 and another at Bank B with the remainder. Both are fully insured.

If you want to keep all your money at one bank, use different ownership categories. Put $250,000 in an individual account in your name, $250,000 in a joint account with your spouse, and $250,000 in a retirement account (IRA). Each is insured separately, so you have $750,000 of coverage at one bank. A revocable trust account is another separate category. Some people use both strategies — multiple banks and multiple ownership categories — to cover very large amounts. There is no limit to how much you can insure as long as you spread it across different banks or different ownership types.

Frequently Asked Questions

Does FDIC insurance cover my money if I lose my debit card or my account is hacked?

No. FDIC insurance covers deposits only if the bank itself fails. If your card is stolen or your account is compromised, that is a fraud or theft issue, not a bank failure. Your bank's fraud protection and your own liability limits (usually $50 to $0 for debit card fraud reported quickly) are what protect you in that case.

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

$250,000 is insured. The remaining $50,000 is not covered by the FDIC. If the bank fails, you will receive $250,000 from the FDIC and will be an unsecured creditor for the $50,000, meaning you may recover some or none of it depending on the bank's assets.

Are online banks FDIC insured?

Most online banks are FDIC insured because they are chartered banks, but not all. Check the bank's website for the FDIC logo or search the BankFind tool. Some online banks are not banks at all — they are fintech companies that partner with banks — so the deposits may be insured through the partner bank, not directly.

What if my bank is FDIC insured but the branch I use closes?

Your deposits are still insured. FDIC insurance covers the bank as a whole, not individual branches. If your branch closes, your account will be transferred to another branch of the same bank or to an acquiring bank, and your coverage continues unchanged.

Can I increase my FDIC coverage by adding a beneficiary to my account?

No. Naming a beneficiary does not create a separate ownership category for FDIC purposes. A payable-on-death (POD) account is a different category and is insured separately, but straightforward naming someone as a beneficiary on a regular account does not increase your coverage.