Which Bank Accounts Are Actually Protected by FDIC Insurance

Yes, but only up to $250,000 per account type at each bank

The Federal Deposit Insurance Corporation (FDIC) covers both savings and checking accounts, but the protection has a hard limit: $250,000 per depositor, per account type, at each insured bank. If you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose the rest if the bank fails. The same $250,000 limit applies to your savings account at that same bank — but because they are different account types, they are insured separately. This means you could have $250,000 covered in checking and another $250,000 covered in savings at the same institution.

The coverage applies automatically. You do not need to sign up, pay a fee, or register your account. If your bank is FDIC-insured (which most banks are), your deposits are protected from the moment the money lands in your account. The FDIC only steps in if the bank actually fails — not if you lose money to fraud, a scam, or your own mistake. It also does not cover investment accounts, money market funds, or stocks held at a brokerage, even if that brokerage is owned by a bank.

Key Takeaways

The FDIC insures up to $250,000 per account type (checking, savings, money market) per person at each bank, automatically and at no cost.
If you have more than $250,000 to protect, you can split it across multiple banks or use joint accounts, which have their own $250,000 limit per co-owner.
FDIC coverage protects you only if the bank fails — not from fraud, scams, or your own withdrawal mistakes.
Not all financial institutions are FDIC-insured; credit unions use NCUA insurance instead, which works the same way.
Money market accounts held at a bank are FDIC-insured, but money market funds sold by a brokerage are not.

How the $250,000 limit works across account types

The FDIC treats each account type as a separate insurance category. A checking account, a savings account, and a money market account at the same bank each get their own $250,000 limit. This means you could theoretically hold $750,000 across three account types at one bank and have all of it covered — $250,000 in each category.

Certificates of Deposit (CDs) are also a separate category. A $250,000 CD at your bank is covered independently from your $250,000 checking account. However, if you own multiple CDs at the same bank, they are added together and share the single $250,000 limit. A $150,000 CD and a $120,000 CD at the same bank would total $270,000, leaving only $30,000 covered.

Individual Retirement Accounts (IRAs) have their own $250,000 limit, separate from your regular deposit accounts. A traditional IRA and a Roth IRA at the same bank are treated as one account type for insurance purposes, so their balances combine. If you have a $200,000 traditional IRA and a $100,000 Roth IRA at the same bank, only $250,000 total is covered.

What happens if you have more than $250,000

The simplest way to protect more than $250,000 is to spread it across multiple FDIC-insured banks. If you have $500,000, you could put $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully covered. The FDIC does not limit how many banks you can use or how much total you can insure this way — only how much is covered at each individual institution.

Joint accounts offer another layer of protection. A joint checking account is insured separately from an individual checking account at the same bank. If you and your spouse each own $250,000 in an individual account, and you also have a joint account with $250,000, all three accounts are covered — the two individual accounts under each person's $250,000 limit, and the joint account under its own $250,000 limit. Each co-owner's share of a joint account is insured up to $250,000, so a joint account with two owners can have up to $500,000 covered ($250,000 per owner).

Trust accounts and accounts held for a minor also have separate coverage. If you hold money in trust for a beneficiary, that account is insured separately from your personal account. The rules are more complex for trusts with multiple beneficiaries, so if you are using a trust structure to hold large sums, check with your bank about how coverage applies.

Which banks and institutions are actually FDIC-insured

Most traditional banks are FDIC-insured, but not all financial institutions are. You can check whether a specific bank is covered by searching the FDIC's Bank Find tool on their website — it lists every insured institution and shows you exactly which branches are covered. Online banks, regional banks, and large national banks are almost always insured. The FDIC does not insure credit unions; those are covered by the National Credit Union Administration (NCUA) instead, which offers the same $250,000 protection structure.

Some banks operate under different charters or ownership structures that affect their FDIC status. A bank owned by another bank may or may not be separately insured depending on how it is chartered. If you are unsure whether your bank is covered, the Bank Find tool is the only reliable source — do not rely on the bank's website or a customer service representative's word.

Brokerage firms and investment companies are not FDIC-insured, even if they are owned by a bank. If you hold stocks, bonds, mutual funds, or money market funds through a brokerage, those are not covered by the FDIC. Some brokerages carry SIPC (Securities Investor Protection Corporation) coverage instead, which protects against brokerage failure but works differently and has lower limits.

What FDIC insurance does and does not cover

FDIC insurance covers you only if the bank fails and cannot return your money. It does not cover losses from fraud, theft, scams, or your own mistakes. If someone steals your debit card and drains your account, that is a separate issue handled by your bank's fraud protection policies and federal banking regulations — not the FDIC. If you accidentally send money to the wrong person, the FDIC will not recover it for you.

The FDIC also does not cover safe deposit boxes or items stored in them. If you keep jewelry, documents, or cash in a safe deposit box and the bank is robbed or the box is damaged, the FDIC does not reimburse you. Safe deposit box contents are your responsibility to insure separately, usually through homeowners or renters insurance.

Interest earned on your deposits is covered as part of your account balance, up to the $250,000 limit. If you have $248,000 in a savings account and earn $3,000 in interest before the bank fails, the total $251,000 is covered up to the $250,000 limit, so you would recover $250,000.

How to check your coverage and organize accounts for maximum protection

Start by listing every account you have at each bank: checking, savings, money market, CDs, and IRAs. Add up the balances within each account type. If any category exceeds $250,000 at a single bank, you are at risk. For example, if you have $300,000 in a savings account and $200,000 in a money market account at the same bank, the savings account is under-covered by $50,000, but the money market account is fully covered because it is a different category.

Use the FDIC's online calculator or worksheet to map out your coverage. It walks you through each account type and shows you exactly how much is covered at each bank. If you find gaps, move money to a different bank or restructure your accounts using joint ownership or trust arrangements. Keep records of which accounts are at which banks and what the balances are — this makes it easier to stay within limits as your money grows.

If you use multiple banks, make sure each one is FDIC-insured by checking the Bank Find tool. Some online banks are insured, but a few are not. A bank that is insured in one state may not be insured in another, though this is rare. Verify before you move large sums.

Frequently Asked Questions

If I have $300,000 in a savings account, how much does the FDIC cover?

The FDIC covers $250,000. The remaining $50,000 is not protected. If the bank fails, you would recover $250,000 and lose the other $50,000. To protect the full amount, move $50,000 to a different FDIC-insured bank.

Are joint accounts covered separately from individual accounts?

Yes. A joint checking account has its own $250,000 limit, separate from your individual checking account at the same bank. Each co-owner's share of a joint account is insured up to $250,000, so a joint account with two owners can have up to $500,000 covered total.

Does FDIC insurance cover money stolen from my account?

No. FDIC insurance only protects you if the bank fails. Fraud and theft are handled through your bank's fraud protection policies and federal banking regulations. Report unauthorized transactions to your bank when ready — federal law limits your liability, but the FDIC does not cover the loss.

Are savings accounts at credit unions FDIC-insured?

No. Credit unions are insured by the NCUA (National Credit Union Administration), not the FDIC. The coverage limits and rules are the same — $250,000 per account type per person — but it is a different agency. Check whether your credit union is NCUA-insured on their website.

What if I have money in a CD that matures after my bank fails?

The FDIC covers the CD balance as it stood when the bank failed, plus any accrued interest up to the $250,000 limit. You do not lose coverage because the CD has not matured yet. The FDIC will pay you the full insured amount, even if the CD was supposed to mature later.

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.