Which Bank Accounts Are Protected by FDIC Insurance

Yes, checking and savings accounts are FDIC insured — up to $250,000 per account type at each bank

The Federal Deposit Insurance Corporation (FDIC) protects money you keep in checking accounts, savings accounts, and money market accounts at banks that display the FDIC logo. If the bank fails, you get your money back up to $250,000 per account type. This protection is automatic — you do not need to sign up or pay a fee.

The key word is "per account type." If you have a checking account and a savings account at the same bank, each one is insured separately up to $250,000. So you could have $250,000 in checking and $250,000 in savings at one bank and be fully covered. But if you have two checking accounts at the same bank, they are added together and covered as one account type, with a combined limit of $250,000.

Key Takeaways

Checking and savings accounts are automatically insured up to $250,000 per account type at FDIC-member banks.
The $250,000 limit applies separately to each account type, so a checking account and savings account at the same bank are each protected fully if under that amount.
Multiple accounts of the same type at the same bank are combined and share the $250,000 limit, not each covered separately.
You can verify a bank is FDIC-insured by looking for the FDIC logo on their website or calling the FDIC's toll-free number to confirm.
Credit unions use a similar system called NCUA insurance, which works the same way but is separate from FDIC coverage.

How the $250,000 limit works across multiple accounts

The FDIC counts accounts by type, not by how many separate accounts you open. If you have a checking account with $100,000 and a savings account with $200,000 at the same bank, both are fully protected because each type stays under $250,000. But if you have two checking accounts at the same bank with $150,000 in each, the FDIC adds them together to $300,000 and only covers $250,000 of that total.

This matters if you are trying to protect more than $250,000 in one account type. The solution is to use different banks. A checking account at Bank A and a checking account at Bank B are each insured separately up to $250,000, because they are at different institutions. The FDIC insures by bank, not by account holder.

Joint accounts — accounts owned by two people together — have their own $250,000 limit separate from individual accounts. So if you and your spouse each have an individual checking account at the same bank, you each get $250,000 of coverage. If you also have a joint checking account at that same bank, it gets another $250,000 of coverage. That is three separate limits.

What counts as a checking or savings account for FDIC purposes

The FDIC covers traditional checking accounts, savings accounts, and money market accounts. These are accounts where you can deposit money and withdraw it, usually with a debit card or check. The FDIC also covers certificates of deposit (CDs), which are accounts where you agree to leave money untouched for a set period in exchange for a higher interest rate.

What the FDIC does not cover are investment accounts. If your bank offers a brokerage account where you buy stocks or mutual funds, that money is not FDIC-insured. It is protected by a different system called SIPC (Securities Investor Protection Corporation), which has different rules and limits. Ask your bank which accounts are FDIC-insured and which are not.

How to confirm your bank is FDIC-insured

Not every bank is FDIC-insured. Most traditional banks are, but some online banks and smaller institutions are not. You can check whether a specific bank is covered by visiting the FDIC's Bank Find tool on their website (fdic.gov) or calling the FDIC at 1-877-275-3342. You can search by bank name or by the city where a branch is located.

You can also look for the FDIC logo on the bank's website or in their branch. The logo is usually displayed near account information or in the footer of their website. If you do not see it and cannot find the bank on the FDIC's list, ask a bank employee directly whether they are FDIC-insured before you open an account.

What happens to your money if the bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors directly. You do not have to do anything — the FDIC finds you using the bank's records and sends you a check or deposits the money into a new account. This process usually takes a few weeks, though the FDIC aims to pay within a few days.

You will receive the full amount you are covered for, up to the $250,000 limit per account type. If you had $300,000 in a checking account at a failed bank, you would receive $250,000. The remaining $100,000 would be lost unless you had other coverage (like a joint account or an account at a different bank).

Credit unions and NCUA insurance

If you bank at a credit union instead of a bank, your accounts are not FDIC-insured. Instead, they are insured by the National Credit Union Administration (NCUA), which is a separate federal agency. The coverage limits and rules are nearly identical to FDIC insurance: $250,000 per account type per institution.

You can check whether a credit union is NCUA-insured by visiting the NCUA's website (ncua.gov) or asking the credit union directly. Like FDIC-insured banks, NCUA-insured credit unions display their insurance status on their website and in their branches.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is covered?

Only $250,000 is covered by FDIC insurance. The remaining $100,000 is not protected. To protect more than $250,000 in savings, you would need to open a savings account at a different FDIC-insured bank, or use a joint account or other account type at the same bank, each of which has its own $250,000 limit.

Are money market accounts the same as savings accounts for FDIC purposes?

No. Money market accounts are a separate account type with their own $250,000 limit. If you have a savings account and a money market account at the same bank, each is covered up to $250,000 separately. However, if you have two money market accounts at the same bank, they are combined and share one $250,000 limit.

Is my money covered if the bank makes a bad investment?

Yes. FDIC insurance covers your deposits no matter what the bank does with the money. It protects you only if the bank fails and cannot return your deposits — not if you lose money on an investment the bank sold you. Investment losses are your responsibility.

Do I need to do anything to get FDIC insurance?

No. If you have an account at an FDIC-insured bank, you are automatically covered. You do not need to sign up, pay a fee, or take any action. The coverage is free and happens without you doing anything.

What if I have accounts at multiple banks?

Each bank's FDIC coverage is separate. You could have $250,000 in a checking account at Bank A and $250,000 in a checking account at Bank B, and both would be fully covered. The FDIC insures by institution, so accounts at different banks do not count toward the same limit.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.