How Much Your Savings Account Is Actually Protected

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

The Federal Deposit Insurance Corporation (FDIC) covers up to $250,000 in a savings account at any single bank. That limit applies to you as an individual — not to the account itself. If you have $500,000 in savings at one bank, only $250,000 is covered. The rest sits uninsured.

The $250,000 figure has been in place since 2008. It applies to standard savings accounts, money market accounts, and checking accounts. The coverage is automatic — you do not need to register or do anything to set up it. The moment you deposit money into an FDIC-insured bank, that protection exists.

The key word is per bank. If you have $250,000 at Bank A and $250,000 at Bank B, both amounts are fully covered because they are at different institutions. The FDIC tracks your deposits by the bank's routing number, not by the account name or the branch location.

Key Takeaways

The FDIC covers $250,000 per person per bank, so deposits above that amount at a single institution are uninsured.
You can hold multiple $250,000-covered accounts by spreading deposits across different banks, each with its own FDIC insurance.
Joint accounts, retirement accounts, and trust accounts have separate $250,000 limits from your individual account at the same bank.
The coverage is automatic at any FDIC-insured bank — you do not need to request it or fill out forms.
If a bank fails, the FDIC pays covered depositors within days, not weeks, and you receive a check or electronic transfer for the insured amount.

How account ownership type changes your coverage

The $250,000 limit is tied to how the account is titled, not just to you as a person. A joint account with your spouse has its own $250,000 coverage separate from your individual savings account at the same bank. This means you could have $250,000 in your name alone and another $250,000 in a joint account at the same bank, and both would be fully covered.

Retirement accounts — IRAs, SEP-IRAs, and similar accounts — also get their own $250,000 limit per bank. A traditional IRA and a Roth IRA at the same bank are treated as separate accounts for insurance purposes, so each one is covered up to $250,000.

Trust accounts work differently. If you set up a revocable living trust and name it as the account owner, the FDIC covers up to $250,000 per beneficiary you name in the trust, up to a maximum of five beneficiaries. A trust with three named beneficiaries could theoretically hold $750,000 in coverage at one bank, though the rules are complex and vary by trust structure.

Accounts held in a business name, sole proprietorship, or partnership have their own coverage category. A business checking account at your bank is covered separately from your personal savings account there.

What happens when you exceed the limit at one bank

If you deposit $400,000 into a savings account at a single FDIC-insured bank, $250,000 is covered and $150,000 is not. That uninsured portion is at risk if the bank fails. You would recover the $250,000 from the FDIC, but the remaining $150,000 would be lost unless the bank's assets are sold and creditors are paid from the proceeds — a process that can take months or years and often results in partial recovery at best.

The FDIC does not warn you when you approach the limit. Banks are required to disclose that FDIC insurance exists, but they are not required to tell you when your balance exceeds coverage. It is your responsibility to track this yourself.

If you have more than $250,000 to keep safe at one institution, you have two options: spread the money across multiple banks, or use a service like IntraFi (formerly Promontory Interbank Network) that automatically divides your deposit across multiple FDIC-insured banks behind the scenes. IntraFi allows you to maintain a single account relationship while ensuring all your money stays within the $250,000-per-bank coverage limits.

How the FDIC pays out when a bank fails

When an FDIC-insured bank fails, the FDIC steps in as the insurer. You do not file a claim or wait for a hearing. The FDIC calculates what you are owed based on your account records at that bank, and it pays you directly.

The standard timeline is payment within one to three business days for most depositors. The FDIC sends the money by check or electronic transfer to the address or account on file. If your account was joint, each owner receives their proportional share of the coverage (usually split 50-50 unless the account documents say otherwise).

The FDIC has a claims process if there is a dispute about the amount owed — for example, if you believe the bank's records of your balance are wrong. You can file a claim with the FDIC within 18 months of the bank's closure. The FDIC investigates and pays the amount it determines is correct.

Banks that are not FDIC-insured

Not every institution that holds deposits is FDIC-insured. Credit unions are covered by the National Credit Union Administration (NCUA), which offers the same $250,000 limit but operates separately from the FDIC. Investment firms, brokerage accounts, and money market funds held at non-bank institutions are not covered by FDIC insurance at all.

Before you open an account, check whether the institution is FDIC-insured. The FDIC maintains a searchable database called BankFind where you can enter a bank's name or routing number and see its insurance status. If a bank is not listed, it is not FDIC-insured.

Some online banks are FDIC-insured even though they have no physical branches. The insurance status depends on the bank's charter and regulatory approval, not on whether you can walk into a building. Most major online banks are FDIC-insured, but you should verify before depositing large amounts.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is covered?

$250,000 is covered by the FDIC. The remaining $50,000 is uninsured at that bank. If you want all $300,000 covered, you would need to move $50,000 to a different FDIC-insured bank.

Does FDIC insurance cover money I lose to fraud or theft?

No. FDIC insurance covers bank failure only — the scenario where the bank itself runs out of money and cannot return deposits. If someone steals your account information or a scammer tricks you into sending money, that is not a bank failure, and the FDIC does not cover it. Your bank may have fraud protections, but those are separate from FDIC insurance.

Are savings accounts and money market accounts covered by the same $250,000 limit?

No. A savings account and a money market account at the same bank are treated as separate account categories, each with its own $250,000 limit. You could hold $250,000 in a savings account and $250,000 in a money market account at the same bank, and both would be fully covered.

What if I have accounts at two branches of the same bank?

Branch location does not matter. The FDIC insures by bank, not by branch. If you have $250,000 at the downtown branch and $100,000 at the uptown branch of the same bank, only $250,000 total is covered because both branches are part of the same institution.

Can I increase my FDIC coverage by adding someone else's name to my account?

Yes, but only if that person is a true joint owner. A joint account has its own $250,000 limit separate from your individual account at the same bank. If you add someone's name only for convenience (not as a true owner), the FDIC may not recognize the account as joint, and you could lose coverage on the portion above $250,000.

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.