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

The Federal Deposit Insurance Corporation (FDIC) insures most savings accounts held at FDIC-member banks. If the bank fails, the FDIC pays depositors back up to $250,000 per depositor, per bank, per account ownership category. This means your money is protected if the bank goes under — you will not lose it.

The $250,000 limit is per person at each bank. If you have $300,000 in savings at one bank, the FDIC covers $250,000 and you lose the remaining $50,000 if that bank fails. If you have $300,000 split across two different FDIC-member banks, both accounts are fully covered because the limit resets at each institution.

Not all banks are FDIC members. Credit unions are insured by the National Credit Union Administration (NCUA) instead, which works the same way: $250,000 per member per credit union. You can check whether a specific bank or credit union is insured by searching the FDIC's or NCUA's online database using the institution's name.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor per bank, so amounts above that are not protected if the bank fails.
  • The $250,000 limit applies separately to each bank you use, meaning you can have $250,000 covered at Bank A and another $250,000 covered at Bank B.
  • Credit unions are insured by the NCUA, not the FDIC, but the coverage limit and rules are identical.
  • Joint accounts, retirement accounts, and trust accounts have separate coverage limits, so the same person can have more than $250,000 insured across different account types at one bank.

How the $250,000 limit breaks down by account type

The FDIC does not just count all your money at one bank and cap it at $250,000. Instead, it sorts your accounts into categories, and each category gets its own $250,000 limit. This means you can have significantly more than $250,000 insured at a single bank if your money is in different account types.

A single account in your name alone is covered up to $250,000. A joint account with another person gets a separate $250,000 limit. A retirement account (IRA, Roth IRA, SEP-IRA) gets another $250,000 limit. A trust account gets another $250,000 limit. If you have $250,000 in a regular savings account, $250,000 in a joint account with your spouse, and $250,000 in an IRA, all three are fully covered at the same bank.

Accounts held in different names or capacities do not share a limit. For example, if you are the sole owner of one account and a co-owner of another account at the same bank, those are two separate coverage categories. The sole account is covered up to $250,000, and the joint account is covered up to $250,000.

What the FDIC does not cover

The FDIC only insures deposits — money you have placed in the bank. It does not cover investments like stocks, bonds, mutual funds, or brokerage accounts, even if those accounts are held at a bank. If you buy stocks through your bank's investment service and the bank fails, the FDIC does not reimburse you for losses in those investments.

Safe deposit boxes are not covered. If you store valuables, documents, or cash in a safe deposit box and the bank fails, the FDIC does not insure the contents. The bank itself may carry insurance on the boxes, but that is separate from FDIC coverage.

Money market accounts are covered by the FDIC if they are deposit accounts (which most are), but money market funds are not. The difference matters: a money market account at a bank is insured; a money market fund purchased through an investment firm is not. Check your account paperwork to see which type you have.

What happens when a bank fails

When an FDIC-insured bank fails, the FDIC steps in as the receiver. It typically arranges for another bank to take over the failed bank's deposits and accounts. In most cases, you will not notice much disruption — your account straightforward transfers to the new bank, and your debit card and online access continue to work.

If no bank takes over the failed bank's deposits, the FDIC pays depositors directly. This process usually takes a few weeks. You will receive a check or a direct deposit for the amount you are owed, up to the $250,000 limit per account category. The FDIC maintains a claims process and will contact you with instructions if direct payment becomes necessary.

Bank failures are rare in the United States. The FDIC has been in operation since 1933, and the insurance fund is maintained through premiums paid by member banks. You do not pay for FDIC coverage directly — it is built into the bank's operating costs.

How to verify your bank or credit union is insured

Search the FDIC's Bank Find tool at banks.data.fdic.gov. Enter your bank's name and the state where you hold your account. The search will show you whether that specific branch is FDIC-insured and provide the bank's FDIC certificate number.

For credit unions, search the NCUA's Credit Union Locator at mapping.ncua.gov. Enter the credit union's name and state. The tool will confirm whether it is NCUA-insured and show you the insurance coverage details.

If your bank or credit union does not appear in either database, your deposits are not federally insured. This is rare for mainstream institutions but can happen with some online banks or smaller lenders. Before opening an account, verify the institution's insurance status.

Strategies for protecting more than $250,000

If you have more than $250,000 in savings, you can spread it across multiple banks to keep all of it insured. Open accounts at different FDIC-member banks, and keep each account under $250,000. This way, each bank's $250,000 limit protects your full balance.

You can also use different account categories at the same bank. Put $250,000 in a single account in your name, $250,000 in a joint account with your spouse, and $250,000 in an IRA. All three are covered separately at the same institution.

If you are married, you and your spouse can each have separate accounts in your own names, and you can also have a joint account. This creates three separate coverage categories: your individual account ($250,000), your spouse's individual account ($250,000), and your joint account ($250,000). A couple could have up to $750,000 insured at one bank using this structure.

Trust accounts offer another layer. If you set up a revocable living trust and name beneficiaries, the trust account itself is covered up to $250,000, separate from your individual account coverage. This is useful for larger estates, but the rules around trust coverage are complex — consult a financial advisor or attorney if you are considering this route.

Frequently Asked Questions

Does FDIC insurance cover my money if I lose my debit card or someone steals my account information?

No. FDIC insurance only covers bank failure, not fraud or theft. If someone steals from your account, that is a separate issue handled by your bank's fraud department and your own liability protections under federal law. Report unauthorized transactions to your bank when ready.

If I have $500,000 at one bank split between a regular account and a joint account, how much is covered?

Both accounts are fully covered. The regular account is covered up to $250,000 under the single-ownership category, and the joint account is covered up to $250,000 under the joint-ownership category. The two limits do not combine or reduce each other.

What if my bank is not FDIC-insured?

Your deposits are not protected by federal insurance. If the bank fails, you have no may provide of getting your money back. Before opening an account, verify the bank's FDIC status using the Bank Find tool. Stick with FDIC-insured institutions for deposit accounts.

Does FDIC insurance cover savings accounts at online banks?

Yes, if the online bank is FDIC-insured. Most major online banks are FDIC members. Search the Bank Find tool to confirm. Online banks often offer higher interest rates than traditional banks while maintaining the same FDIC coverage.

If I have money in a savings account and a checking account at the same bank, are they covered separately?

No. Both accounts are in the same ownership category (single account owner), so they share the $250,000 limit. The FDIC combines all your single-ownership accounts at one bank and covers the total up to $250,000, regardless of how many separate accounts you have.