The standard FDIC insurance limit is $250,000 per depositor, per bank, per account ownership category

The Federal Deposit Insurance Corporation (FDIC) covers up to $250,000 in deposits at each bank where you have money. That limit applies to each person at each institution—so if you have $250,000 at Bank A and $250,000 at Bank B, both are fully covered. The $250,000 figure has been in place since 2010 and applies to most deposit accounts: checking, savings, money market accounts, and certificates of deposit (CDs).

The coverage is automatic. You do not need to sign up, pay a fee, or do anything to set up it. If your bank fails, the FDIC steps in and either transfers your deposits to another bank or sends you a check. The process typically takes a few days to a few weeks, depending on the bank's size and the number of accounts involved.

What matters most is understanding the categories. The $250,000 limit resets for each different way you can own an account. A single account in your name is one category. A joint account with your spouse is a separate category with its own $250,000 limit. A retirement account (IRA, Roth IRA) is another category. This means a married couple can have $1 million covered at one bank: $250,000 in a single account, $250,000 in a joint account, $250,000 in one spouse's IRA, and $250,000 in the other spouse's IRA.

Key Takeaways

  • The FDIC insures up to $250,000 per person per bank per account ownership type, and this coverage is automatic with no action required on your part.
  • Money in a joint account is insured separately from money in a single account at the same bank, so a married couple can protect $500,000 together at one institution.
  • Retirement accounts (IRAs, Roth IRAs, SEP-IRAs) have their own $250,000 insurance category distinct from regular savings or checking accounts.
  • Amounts over $250,000 in a single category at one bank are not covered, so spreading deposits across multiple banks or account types protects larger sums.
  • The FDIC only covers banks and savings institutions; money market funds, brokerage accounts, and credit unions are insured through different programs with different limits.

Account ownership categories that each get their own $250,000 limit

The FDIC divides accounts into separate insurance categories based on how the account is titled. Each category has its own $250,000 limit, and coverage does not bleed between them. Understanding these categories is the key to protecting larger amounts of money.

Single accounts (in one person's name only) are the most common category. A checking account, savings account, or CD in your name alone is covered up to $250,000. If you have multiple single accounts at the same bank—say, a checking account and a savings account—they are added together and share the $250,000 limit. You cannot get $250,000 coverage for each account; the bank combines them.

Joint accounts (owned by two or more people) are insured separately. If you and your spouse have a joint savings account with $250,000, that is fully covered. If you also have a single account in your name alone at the same bank with $250,000, that is also fully covered—two separate $250,000 limits. Each joint owner is insured for their proportional share, but the FDIC assumes equal ownership unless the account documents say otherwise.

Retirement accounts (IRAs, Roth IRAs, SEP-IRAs, straightforward IRAs) are insured in their own category. A traditional IRA with $250,000 is fully covered. A Roth IRA at the same bank is also fully covered under a separate limit. These are not combined with your single or joint accounts. This category applies only to retirement accounts held at banks; brokerage IRAs follow different rules.

Accounts held in trust (such as payable-on-death accounts or formal trusts) may have higher coverage depending on the structure. A payable-on-death account where you name a beneficiary can be insured for up to $250,000 per beneficiary, meaning a parent with three named beneficiaries could have up to $750,000 covered in a single POD account. Formal trust accounts are more complex and depend on the number of beneficiaries and the trust structure.

Custodial accounts (for minors) and accounts for self-employed people (Keogh plans) each have their own categories as well, though these are less common. The FDIC website has a full list of all categories.

What happens to money over the $250,000 limit

Any amount above $250,000 in a single category at one bank is not covered by FDIC insurance. If your bank fails and you have $300,000 in a single checking account, the FDIC will pay you $250,000. The remaining $100,000 becomes a claim against the bank's assets, and you may recover some or none of it depending on how much the bank's other assets are worth. In practice, this recovery is rare and often takes years.

The solution is to spread money across multiple banks or multiple account categories. If you have $500,000 to protect, you could put $250,000 in a single account at Bank A and $250,000 in a joint account at Bank B. Both would be fully covered. Alternatively, you could keep $250,000 in a single account and $250,000 in a retirement account at the same bank, and both would be covered under separate limits.

Some people use a service called a sweep account or deposit sweep program, offered by some brokerages and banks. These automatically move money above a certain threshold to other FDIC-insured banks, ensuring all of it stays covered. The mechanics vary by provider, so ask your bank whether they offer this service and how it works.

Coverage at different types of financial institutions

FDIC insurance applies only to banks and savings institutions. If your money is at a different type of institution, it may not be covered, or it may be covered under a different program with different limits.

Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC. The coverage limit is also $250,000 per member per credit union per account category, so the structure is similar, but the insurer is different. If your credit union fails, the NCUA handles the payout.

Brokerage accounts (where you buy stocks, bonds, or mutual funds) are not covered by FDIC insurance. They are covered by the Securities Investor Protection Corporation (SIPC) up to $500,000 per customer per brokerage firm, but only for certain types of losses (mainly if the brokerage firm fails and your securities go missing). SIPC does not cover investment losses or market declines.

Money market funds sold by brokerages or mutual fund companies are not FDIC-insured. Money market accounts at banks are FDIC-insured, but money market funds are not—the names are similar but the products are different. Check your statement to see which one you own.

Savings bonds (U.S. Treasury bonds) are backed by the federal government and are not FDIC-insured, but they do not need to be—they are safer than bank deposits because they are direct obligations of the U.S. government.

How to verify your coverage at your current bank

The FDIC provides a tool called the FDIC Coverage Calculator on its website (fdic.gov). You enter your bank name, the account types you have, and the balances, and it tells you exactly how much is covered and how much is not. This is the most reliable way to check your specific situation.

You can also call your bank's customer service line and ask them directly. They should be able to tell you whether your accounts are FDIC-insured and what the coverage limits are. If they cannot answer clearly, that is a red flag—a legitimate bank should know this.

If you have accounts at multiple banks, check each one separately. The FDIC limit is per bank, so coverage at Bank A does not affect coverage at Bank B. If you are moving money or consolidating accounts, verify the coverage before and after the move to make sure you do not accidentally exceed the limit at any single institution.

Special situations: Trusts, beneficiaries, and business accounts

If you have set up a payable-on-death (POD) account or a formal trust account, the coverage rules are different. A POD account where you name one beneficiary is insured for up to $250,000 in your name and another $250,000 for the beneficiary's interest. If you name three beneficiaries, the coverage can be up to $250,000 per beneficiary, meaning $750,000 total could be covered in a single account—but only if the account is properly titled and the beneficiaries are named in the account documents.

Formal revocable trusts (the kind many people set up for estate planning) are insured based on the number of beneficiaries and the trust structure. This is complex, and the FDIC website has detailed guidance. If you have a trust account with a large balance, contact the FDIC directly or use the Coverage Calculator to verify your protection.

Business accounts (sole proprietorships, partnerships, corporations) are insured separately from personal accounts. A business checking account is covered up to $250,000 as a business account, distinct from the owner's personal accounts. If you are a sole proprietor, your business account and personal account are separate categories, so you could have $250,000 in each, fully covered.

What to do if you have more than $250,000 to protect

If you have savings above $250,000 and want full FDIC coverage, the most straightforward approach is to split the money across multiple banks. Open accounts at different institutions—Bank A, Bank B, Bank C—and keep $250,000 or less at each one. This is straightforward and requires no special setup.

Another option is to use multiple account categories at the same bank. You could have a single account ($250,000), a joint account with your spouse ($250,000), and a retirement account ($250,000) all at the same bank, for a total of $750,000 fully covered. This works only if you actually have a spouse and a retirement account; you cannot artificially create categories.

If you want to keep all your money at one bank for convenience, ask whether they offer a deposit sweep program. Some banks will automatically move money above a threshold to partner banks to keep it all insured. The details vary, so ask your bank directly.

For very large amounts, some people use a combination of banks and other products. For example, you might keep $250,000 in a bank account (FDIC-insured), $250,000 in a credit union account (NCUA-insured), and the rest in Treasury bonds (backed by the federal government). This is not the same as FDIC coverage, but it achieves the same goal: protection of your principal.

Frequently Asked Questions

If my bank merges with another bank, does my coverage change?

When two banks merge, the FDIC treats it as a single institution for coverage purposes. If you had $250,000 at Bank A and $250,000 at Bank B, and they merge into Bank C, you now have $500,000 at one institution and only $250,000 is covered. The FDIC gives a grace period (usually six months) to move money to another bank without losing coverage, but after that, the excess is uninsured. Check your bank's announcements if a merger is announced.

Does FDIC insurance cover money I owe the bank, like overdrafts or loan payments?

No. FDIC insurance covers deposits only—money you have in the account. If you overdraw your account or owe the bank money for any reason, the bank can offset your deposits against what you owe. The insurance does not prevent this. It only protects your deposits from the bank's failure, not from the bank's claims against you.

Is my money covered if the bank is robbed or if I am a victim of fraud?

No. FDIC insurance covers only the failure of the bank itself. If money is stolen by a robber, lost to fraud, or taken by a hacker, that is not an FDIC matter. You would need to file a claim with your bank or law enforcement. Banks are required to have their own fraud protections and may reimburse you depending on the circumstances, but that is separate from FDIC insurance.

Do I lose coverage if I move my money to a different account type at the same bank?

No, but the coverage limit resets. If you move $250,000 from a single account to a joint account at the same bank, it is still covered up to $250,000 because it is now in a different category. However, if you move it to another single account at the same bank, the two single accounts are combined and only $250,000 total is covered. The category matters, not the account type.

What if my bank is FDIC-insured but my specific account is not?

This is rare but possible. Most accounts at FDIC-insured banks are covered, but some products—like certain investment accounts or accounts held in a foreign currency—may not be. Your bank should disclose this clearly. If you are unsure, ask your bank directly whether your specific account is FDIC-insured, or use the FDIC Coverage Calculator.