How Much Your Bank Account Is Protected If Your Bank Fails

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

The Federal Deposit Insurance Corporation (FDIC) covers your money if the bank fails — but only up to a limit. That limit is $250,000 per depositor, per bank, per account category. If you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose the rest. If you have $300,000 split between a checking account and a savings account at the same bank, both are covered in full because they are different account categories.

The $250,000 limit has been in place since 2008. It applies to every FDIC-insured bank in the country. If your bank is not FDIC-insured, your deposits have no federal protection at all — though most banks you encounter will be insured.

Key Takeaways

The FDIC covers up to $250,000 per person, per bank, per account type, so a checking and savings account at the same bank are both fully covered if each holds less than $250,000.
Money in a joint account is insured separately from money in your individual account at the same bank, so a couple can each have $250,000 in their own account plus $250,000 in a joint account.
If you have more than $250,000 at one bank, you can protect the excess by opening accounts in different categories or by using a second FDIC-insured bank.
The FDIC does not cover investment accounts, stocks, bonds, or money market mutual funds — only deposits like checking, savings, and money market deposit accounts.
You do not need to do anything to receive FDIC coverage; it is automatic at any FDIC-insured bank.

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

The FDIC divides accounts into categories, and you get $250,000 of coverage in each one at the same bank. The main categories are: single accounts (in your name only), joint accounts (shared with another person), retirement accounts (IRAs and similar), and accounts held in trust. If you have $200,000 in a checking account and $200,000 in a savings account, both in your name only at the same bank, only $250,000 total is covered because they are both single accounts. But if $200,000 is in your name and $200,000 is in a joint account with your spouse at the same bank, both are fully covered because they are different categories.

Retirement accounts like traditional IRAs and Roth IRAs are insured separately from your regular accounts. You can have $250,000 in an IRA and $250,000 in a checking account at the same bank, and both are fully covered. Trust accounts are also separate — if you hold money in trust for a beneficiary, that is covered up to $250,000 apart from your own accounts.

What happens if you have more than $250,000

If you have $400,000 and want it all covered, you have two main options. First, you can split it across account categories at the same bank — for example, $250,000 in a single checking account and $150,000 in a joint account with your spouse. Second, you can use two different FDIC-insured banks — $250,000 at Bank A and $150,000 at Bank B. Both approaches work because the $250,000 limit applies per bank, not per person across all banks.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to spread their money across multiple banks automatically. You deposit money with one institution, and IntraFi divides it among partner banks in $250,000 chunks, so all of it is covered. This is useful if you have a large sum and do not want to manage multiple bank accounts yourself, though it is less common for everyday banking.

What the FDIC does not cover

FDIC insurance covers money you deposit — checking accounts, savings accounts, money market deposit accounts, and CDs. It does not cover stocks, bonds, mutual funds, or investment accounts, even if those accounts are held at an FDIC-insured bank. If your bank offers a brokerage service and you buy stocks through it, those stocks are not FDIC-insured. They may be protected by a different system called SIPC (Securities Investor Protection Corporation), but that is separate.

The FDIC also does not cover safe deposit boxes, cashier's checks, or wire transfers. If you keep cash or valuables in a safe deposit box at the bank and the bank fails, the contents are not covered. Cashier's checks and wire transfers are not deposits — they are payments, so they fall outside FDIC protection.

How to check if your bank is FDIC-insured

You can search the FDIC's Bank Find tool on their website to confirm your bank is insured. Enter your bank's name and state, and the tool will show you whether it is FDIC-insured and which specific branches are covered. Most banks you encounter will be insured, but some credit unions and online banks are not — they may be insured by the NCUA (National Credit Union Administration) instead, which works the same way but covers credit union accounts.

Your bank statement or online banking portal may also display an FDIC logo or statement confirming coverage. If you are unsure, call your bank's customer service line and ask directly whether your account is FDIC-insured.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors up to $250,000 per account category. You do not have to file a claim or contact the FDIC — the agency handles it automatically. In most cases, you will have access to your money within a few business days, either through a transfer to another bank or through a new account opened by the FDIC at a successor bank. The FDIC has a track record of resolving bank failures quickly, so the disruption is usually brief.

Bank failures are rare in the United States. The FDIC has been in place since 1933, and the system is designed to prevent runs on banks and protect ordinary depositors. You do not need to worry about your money disappearing if you stay within the $250,000 limit per account category.

Frequently Asked Questions

If I have $300,000 in one checking account, how much is covered?

The FDIC covers $250,000. The remaining $100,000 is not protected. To cover the full amount, you would need to move $50,000 to a different account category (like a savings account) at the same bank, or move it to a second FDIC-insured bank.

Are joint accounts covered separately from individual accounts?

Yes. A joint account is a separate category, so you can have $250,000 in an individual checking account and $250,000 in a joint account at the same bank, and both are fully covered. Each owner of the joint account is insured for their share up to $250,000.

Does FDIC insurance cover money in a savings account at an online bank?

Yes, if the online bank is FDIC-insured. Most online banks are insured. You can verify by searching the FDIC's Bank Find tool or checking the bank's website for an FDIC logo and statement.

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

CDs are covered by FDIC insurance up to $250,000, even if they have not matured yet. If the bank fails, the FDIC will pay you the full CD balance plus any accrued interest up to the $250,000 limit.

If I have $250,000 in a retirement account and $250,000 in a checking account, are both covered?

Yes. Retirement accounts are a separate category from individual checking accounts, so you can have $250,000 in each at the same bank and both are fully covered.

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.