Yes, but only up to $250,000 per account owner per bank

The Federal Deposit Insurance Corporation (FDIC) covers most savings accounts held at banks it insures. The protection is automatic — you do not need to sign up or pay a fee. But the coverage has a hard limit: $250,000 per depositor, per insured bank, per account ownership category.

That means if you have $300,000 in a savings account at one bank, the FDIC covers $250,000 and you lose the rest if the bank fails. If you have $250,000 in a savings account and $250,000 in a money market account at the same bank under your own name, you are covered on both — they count as separate categories. The rules are specific about which accounts count and which do not.

Key Takeaways

  • FDIC coverage applies to savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs) at insured banks, but the limit is $250,000 per person per bank.
  • Joint accounts, retirement accounts (IRAs), and trust accounts each have their own $250,000 limit, so you can hold more than $250,000 total across different ownership types at one bank.
  • Not all banks are FDIC-insured — credit unions use NCUA insurance instead, and some online banks are insured while others are not, so you must verify your bank's status.
  • Funds held in a brokerage account or invested in stocks, bonds, or mutual funds are not covered by FDIC insurance, even if the brokerage is FDIC-insured.

What counts as a covered savings account

The FDIC covers savings accounts, checking accounts, money market deposit accounts, and certificates of deposit (CDs). All of these are treated the same way for insurance purposes — they all fall under the $250,000 limit per person per bank. The account type does not matter; what matters is the ownership category.

Accounts must be held at a bank that is FDIC-insured. You can check whether your bank is insured by searching the FDIC's Bank Find tool on its website — enter your bank name and it will tell you the insurance status and the date the bank was insured. Most large national banks and most regional banks are insured. Some online banks are insured and some are not, so checking is necessary if you bank online.

How ownership categories change your coverage

The FDIC counts coverage separately for each ownership category. If you own an account by yourself, that is one category. If you own a joint account with someone else, that is a different category. If you have an IRA, that is a third category. Each one gets its own $250,000 limit at the same bank.

A concrete example: You have $250,000 in a savings account under your name alone, $250,000 in a joint savings account with your spouse, and $250,000 in a traditional IRA. All three are at the same bank. The FDIC covers all three in full — $750,000 total — because each sits in a different ownership category. If you added a fourth account, a revocable trust account, that would also get its own $250,000 limit.

The ownership categories recognized by the FDIC are: single ownership (your name alone), joint ownership (two or more people), retirement accounts (IRAs and Roth IRAs), revocable trust accounts, irrevocable trust accounts, and accounts held for a specific purpose like a health savings account (HSA) or education savings account (529 plan). Each has its own $250,000 limit.

What the FDIC does not cover

Investments are not covered. If your bank offers a brokerage service and you buy stocks, bonds, mutual funds, or exchange-traded funds (ETFs) through that service, those holdings are not FDIC-insured. The cash sitting in your brokerage account before you invest it may be insured, but the moment it is invested in securities, the insurance stops.

Safe deposit boxes are not covered. If you store jewelry, documents, or other valuables in a safe deposit box at your bank, the FDIC does not insure the contents. The bank may offer its own insurance or you may need to insure the contents separately through a homeowner's or renter's policy.

Funds held outside the United States are not covered, even if they are held at an FDIC-insured bank. If your bank has a branch abroad and you hold an account there, FDIC insurance does not explore. Cryptocurrency and digital assets held at a bank are also not covered.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors up to the $250,000 limit per account ownership category. The process is called receivership. The FDIC typically transfers your account to another bank within a few business days, and you can access your money as usual. You do not have to do anything — the FDIC handles it automatically.

If your account exceeds $250,000, you lose the amount over the limit. For example, if you have $300,000 in a savings account and the bank fails, you receive $250,000 and the remaining $100,000 is gone. This is why people with large sums often split their money across multiple banks or use different ownership categories at the same bank.

How to verify your bank is FDIC-insured

Use the FDIC's Bank Find tool, available on the FDIC website. Enter your bank's name and the state where you hold your account. The tool will show you the bank's FDIC certificate number, the date it was insured, and the name of the FDIC regional office that oversees it. If your bank does not appear in the search results, it is not FDIC-insured.

If you bank at a credit union, the FDIC does not insure your account — the National Credit Union Administration (NCUA) does instead. NCUA coverage works similarly: $250,000 per member per credit union per ownership category. You can verify NCUA insurance through the NCUA's Credit Union Locator tool.

Strategies for protecting more than $250,000

If you have more than $250,000 to keep in deposit accounts, 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 means both amounts are fully covered. Each bank's FDIC insurance is separate.

You can also use different ownership categories at the same bank. A $250,000 account in your name alone, a $250,000 joint account with your spouse, and a $250,000 IRA all at the same bank are each fully covered. This works if you have multiple people in your household or multiple account types you want to use.

Some people use revocable trust accounts to increase coverage. If you set up a revocable trust and name beneficiaries, the FDIC may cover up to $250,000 per named beneficiary, in addition to your other accounts. This is more complex and requires legal setup, so consult a lawyer or financial advisor if you are considering it.

Frequently Asked Questions

Does FDIC insurance cover my money market account?

Yes, money market deposit accounts held at FDIC-insured banks are covered up to $250,000 per person per bank. Money market accounts are treated the same as savings and checking accounts for insurance purposes. Note that money market mutual funds sold through a brokerage are not FDIC-insured — only deposit accounts are.

If I have a joint account with my spouse, is each of us covered for $250,000?

No. A joint account has one $250,000 limit that covers both owners together. If the account holds $250,000, you and your spouse are both covered in full. If it holds $300,000, the FDIC covers $250,000 total, not $250,000 per person. However, if you also each have separate individual accounts at the same bank, those are covered separately.

Are online banks FDIC-insured?

Some are and some are not. Many online banks are FDIC-insured, but not all. You must check each bank individually using the FDIC's Bank Find tool. Most large online banks like Ally, Marcus, and Discover are insured, but always verify before opening an account.

What if I have more than $250,000 in CDs at one bank?

CDs are covered the same way as savings accounts — $250,000 per person per bank per ownership category. If you have $300,000 in CDs under your name alone at one bank, $250,000 is covered and $50,000 is not. You can split the remaining $50,000 into a CD at a different bank to cover it.

Does FDIC insurance cover my debit card balance?

Yes. Money in your checking account that you access with a debit card is FDIC-insured the same way as any other checking account balance — up to $250,000 per person per bank. The debit card is just a way to access the account; the insurance applies to the account itself.