How Much Money the FDIC Protects in Your Bank Account

The FDIC covers up to $250,000 per depositor, per bank, per account category

The Federal Deposit Insurance Corporation (FDIC) protects your money if your bank fails. The standard limit is $250,000 per depositor at each bank. That means if you have $250,000 or less in a checking account at one bank, all of it is protected. 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 category separately. This is the part that confuses most people. You can have more than $250,000 protected at the same bank if your money is in different types of accounts. A joint checking account, a savings account in your name alone, and a retirement account all count separately toward the $250,000 limit — they do not share one pool.

The limit has been $250,000 since 2008. Before that it was $100,000. The FDIC can raise or lower this amount by law, but it has stayed at $250,000 for over 15 years.

Key Takeaways

The FDIC insures up to $250,000 per depositor, per bank, per account category, so money in different account types at the same bank are protected separately.
A joint account is insured separately from an individual account, meaning you can have $250,000 in a joint checking account and another $250,000 in a savings account in your name alone at the same bank, both fully covered.
If you have more than $250,000 at one bank in the same account category, only $250,000 is protected and the rest is at risk if the bank fails.
Retirement accounts like IRAs have their own $250,000 limit separate from your regular checking and savings accounts.
The $250,000 limit applies per bank, not per branch, so having accounts at two different banks means each bank's accounts are insured separately up to $250,000.

How account categories work and why they matter

The FDIC divides accounts into categories, and each category gets its own $250,000 protection. The main categories are: single accounts (in your name alone), joint accounts (shared with another person), retirement accounts (IRAs and similar), and accounts held in trust.

A joint account is a separate category from a single account. If you and your spouse have a joint checking account with $250,000, that is fully insured. If you also have a savings account in your name alone with another $250,000 at the same bank, that is also fully insured. The two accounts do not compete for the same $250,000 limit because they are different categories.

This matters most when you have significant savings. If you have $400,000 and want to keep it all at one bank, you could put $250,000 in a single account and $150,000 in a joint account with a family member. Both would be fully protected. Without understanding categories, you might put all $400,000 in one account and lose $150,000 if the bank failed.

What happens when you exceed the limit in one account category

If you have $300,000 in a checking account at a bank that fails, the FDIC pays you $250,000. The remaining $50,000 becomes a claim against the bank's assets. You may recover some of it if the bank's assets are sold, but you may not. There is no may provide.

The FDIC does not automatically move money between your accounts to protect more of it. If you have $300,000 in checking and $100,000 in savings at the same bank, both in your name alone, the FDIC treats them as one account category (single accounts). You are covered up to $250,000 total across both accounts, not $250,000 in each.

The way to protect more than $250,000 in a single account category is to split it across different banks. $250,000 at Bank A and $250,000 at Bank B means both amounts are fully insured, because the limit is per bank.

Retirement accounts and their own insurance limit

Retirement accounts — including traditional IRAs, Roth IRAs, SEP IRAs, and similar accounts — have their own $250,000 insurance limit separate from your regular checking and savings accounts. If you have a $250,000 IRA and a $250,000 savings account at the same bank, both are fully covered because they are different categories.

This applies only to accounts that are formally registered as retirement accounts with the bank. A savings account that you happen to use for retirement savings does not count as a retirement account for FDIC purposes. The account must be set up as an IRA or other may have access to retirement account.

Joint accounts and how they are insured

A joint account is insured separately from a single account. If you and another person own a joint checking account with $250,000, the full amount is covered. If you also have a savings account in your name alone with $250,000 at the same bank, that is also fully covered — the two accounts do not share the $250,000 limit.

The FDIC insures each owner's share of a joint account separately, up to $250,000 per owner. If you and your spouse have a joint account with $400,000, the FDIC covers $250,000 of your share and $250,000 of your spouse's share, for a total of $500,000 covered. This assumes you each own half the account. If one person owns more, the coverage is still $250,000 per person, but the calculation of who owns what can become complex.

Joint accounts are useful for protecting larger amounts of money at a single bank, but only if the account is truly joint — both owners must have equal rights to the money and both must be able to withdraw it.

When you have accounts at multiple banks

The $250,000 limit is per bank, not per branch. If you have $250,000 at Bank A and $250,000 at Bank B, both amounts are fully insured. The FDIC does not combine your accounts across different banks.

This is why people with large amounts of cash sometimes use multiple banks. If you have $1 million and want all of it insured, you could put $250,000 at each of four different banks. Each bank's deposit would be fully covered.

The bank's name is what matters, not the branch location. If you have accounts at two branches of the same bank, they count as accounts at the same bank for FDIC purposes. The FDIC combines all your single accounts at that bank and covers up to $250,000 total.

How to check your coverage and plan your accounts

The FDIC provides a tool called the FDIC Coverage Calculator on its website. You enter information about your accounts — the bank name, account type, balance, and whether it is joint — and the calculator tells you how much is covered and how much is not. This is the most reliable way to check your own situation.

If you have more than $250,000 in a single account category at one bank, you have three options: move the excess to a different bank, move it to a different account category at the same bank (like a joint account or retirement account), or accept that the excess is not insured. There is no penalty for moving money between banks or account types.

Many people with significant savings use a combination of these strategies. You might keep $250,000 in a high-yield savings account at Bank A, $250,000 in a money market account at Bank B, and $250,000 in a joint account with your spouse at Bank C. All three amounts would be fully insured.

Frequently Asked Questions

Does the FDIC cover money market accounts and CDs?

Yes. Money market accounts, certificates of deposit (CDs), and savings accounts are all covered by the FDIC up to $250,000 per depositor, per bank, per account category. The type of account does not matter — only the category (single, joint, retirement, or trust) and the bank.

What if I have $250,000 in a joint account with my spouse and they also have $250,000 in a single account at the same bank?

Both are fully covered. The joint account is insured separately from the single account. The joint account covers up to $250,000 per owner (so $500,000 total if you each own half), and the single account covers up to $250,000. The two accounts do not share the same limit because they are different categories.

If my bank fails, how long does it take to get my money back?

The FDIC typically pays depositors within a few days of a bank failure. In most cases, your money is available within one to three business days. The FDIC does not charge you for this protection — it is funded by insurance premiums paid by banks.

Does the FDIC cover investment accounts or stocks?

No. The FDIC covers only deposits — checking accounts, savings accounts, money market accounts, and CDs. It does not cover stocks, bonds, mutual funds, or other investments, even if they are held at a bank. Those are covered by different insurance (like SIPC for brokerage accounts).

Can I increase my FDIC coverage by putting money in multiple savings accounts at the same bank?

No, not in the same account category. If you have multiple savings accounts in your name alone at the same bank, the FDIC combines them and covers up to $250,000 total. To increase coverage at the same bank, you need to use different account categories — for example, a joint account, a retirement account, or a trust account.

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.