The FDIC insures up to $250,000 per depositor, per bank, per account type

The Federal Deposit Insurance Corporation (FDIC) protects your money if the bank fails. The standard coverage limit is $250,000 for each depositor at each bank. This means if you have $250,000 or less in a savings account at one bank, all of it is insured. If you have $300,000, the FDIC covers $250,000 and you lose the remaining $50,000.

The $250,000 limit applies to each account type separately. This is the key detail that changes how much total protection you actually have. A savings account and a checking account at the same bank are counted separately, so you could have $250,000 insured in savings and another $250,000 insured in checking at that same bank — for a total of $500,000 protected.

The coverage is per depositor, per bank. If you have accounts at two different banks, each bank's $250,000 limit applies separately. If you have $200,000 at Bank A and $200,000 at Bank B, both amounts are fully insured because they are at different institutions.

Key Takeaways

  • The FDIC insures up to $250,000 per person at each bank, so moving money to a second bank doubles your coverage.
  • Savings accounts and checking accounts are insured separately, meaning you can have $250,000 in each at the same bank.
  • Joint accounts are insured separately from individual accounts, so a joint savings account gets its own $250,000 limit.
  • Money market accounts and certificates of deposit (CDs) are also FDIC-insured up to $250,000 each, as separate account types.

How account type affects your coverage limit

The FDIC recognizes different account ownership categories, and each one has its own $250,000 limit at the same bank. An individual account, a joint account, and a retirement account are three separate categories.

If you have a savings account in your name only, that is one category. If you have a joint savings account with your spouse, that is a different category and gets its own $250,000 protection. If you also have a retirement account (like a traditional IRA or Roth IRA) at the same bank, that is a third category with another $250,000 limit. In this scenario, you could have up to $750,000 insured at one bank across these three account types.

Trust accounts, accounts for a minor, and accounts held as an executor of an estate are also separate categories. Each has its own $250,000 limit. The more account types you use, the more total coverage you can have at a single bank — but most people do not need this level of complexity.

What happens when you exceed the $250,000 limit

If your balance goes above $250,000 in a single account type at one bank, only $250,000 is insured. The amount over the limit is not protected. If the bank fails, you would lose that uninsured portion.

This is why people with large sums of money sometimes split their deposits across multiple banks. If you have $500,000 in savings, you could put $250,000 at Bank A and $250,000 at Bank B. Both amounts would be fully insured because they are at different banks.

Some people use a service called FDIC pass-through insurance through banks that offer it, which can increase coverage for certain account types like retirement accounts or trust accounts. However, this is not common and requires the bank to participate in the program. Most people straightforward open accounts at multiple banks if they have more than $250,000 to deposit.

Coverage for different savings products

Savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs) are all FDIC-insured products. Each type is counted as a separate category for insurance purposes at the same bank.

A CD is a savings product where you agree to leave money in the account for a set period — three months, one year, five years, or longer. In exchange, the bank pays you a higher interest rate than a regular savings account. The FDIC insures CDs the same way it insures savings accounts: up to $250,000 per depositor per bank. If you have a $250,000 CD and a $250,000 savings account at the same bank, both are fully insured because they are different account types.

Money market accounts are a hybrid between a savings account and a checking account. They usually pay higher interest than savings accounts but may have limits on how often you can withdraw. The FDIC treats them as their own category, so a $250,000 money market account is insured separately from a $250,000 savings account at the same bank.

What the FDIC does not cover

The FDIC only insures deposits held at banks. Investments like stocks, bonds, mutual funds, and brokerage accounts are not FDIC-insured, even if you buy them through your bank. If you buy a stock mutual fund at your bank and the bank fails, your mutual fund is not protected by FDIC insurance — it belongs to you, not the bank, so it is not at risk from the bank's failure anyway.

Safe deposit boxes are also not FDIC-insured. If you store jewelry, documents, or other valuables in a safe deposit box at your bank and the bank fails, the FDIC does not cover the contents. You would need separate insurance, like a homeowner's or renter's policy, to protect those items.

Cashier's checks, money orders, and traveler's checks are not FDIC-insured either. These are payment instruments, not deposits. If you deposit a cashier's check into your account, the deposit itself is insured, but the check as an object is not.

How to verify your bank is FDIC-insured

Not every bank is FDIC-insured. Most traditional banks are, but some online banks, credit unions, and other financial institutions are not. Before you open an account, you can check whether a bank is FDIC-insured by visiting the FDIC's official website and using their bank search tool. You enter the bank's name and state, and the tool tells you whether it is insured and what its insurance certificate number is.

You can also ask the bank directly. FDIC-insured banks are required to display FDIC signage in their branches and on their website. If a bank is FDIC-insured, it will say so clearly in its marketing materials and account disclosures.

Credit unions are not FDIC-insured. Instead, they are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 per depositor, per credit union, per account type coverage. The protection works the same way as FDIC insurance, just through a different agency.

Planning your deposits across multiple banks

If you have more than $250,000 in savings, you do not have to choose between banks. You can spread your money across multiple banks and keep all of it insured. The key is to keep track of which account type is at which bank.

A straightforward approach: put $250,000 in a savings account at Bank A, $250,000 in a savings account at Bank B, and so on. Each account is fully insured. If you also have a joint savings account with your spouse, that is a separate category, so you could have another $250,000 insured at Bank A in the joint account while still having $250,000 insured in your individual account there.

Some people use a spreadsheet to track their accounts and balances across banks, especially if they have multiple account types. This prevents accidentally exceeding the $250,000 limit in a single account type at a single bank. The FDIC website also has a calculator tool that can help you figure out how much of your money is insured based on your account setup.

Frequently Asked Questions

Does FDIC insurance cover my money if I lose my debit card or forget my password?

No. FDIC insurance only protects you if the bank itself fails and closes. It does not cover theft, fraud, or your own mistakes. If someone steals your debit card and drains your account, that is a separate issue you would handle with your bank's fraud department and your own bank account protections.

If I have $300,000 in one savings account, how much is insured?

Only $250,000 is insured. The remaining $50,000 is not protected by the FDIC. If the bank fails, you would lose that $50,000. To protect the full $300,000, you would need to move $50,000 to a savings account at a different bank.

Are retirement accounts like IRAs insured differently?

Yes. A traditional IRA or Roth IRA is a separate account category from a regular savings account, so it gets its own $250,000 limit at the same bank. If you have a $250,000 IRA and a $250,000 savings account at the same bank, both are fully insured because they are different categories.

What if my bank merges with another bank?

During a bank merger, the FDIC temporarily increases coverage to $250,000 per depositor per bank for six months, even if you now have accounts at both banks. After six months, the standard rule applies: $250,000 per depositor per bank. You would need to move money to a different bank if you want to keep more than $250,000 insured.

Is my money insured if I keep cash at home instead of in a bank?

No. FDIC insurance only covers money deposited in FDIC-insured banks. Cash kept at home is not insured by anyone. If your home is robbed or destroyed, you lose the cash. A bank account is safer because the money is both insured and protected by the bank's security systems.