FDIC insurance covers 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 per person, at each bank where you have an account. This means if you have $250,000 or less in a savings account at one bank, all of it is covered. If you have $300,000, the FDIC covers $250,000 and you lose the other $50,000.

The $250,000 limit applies to each account type separately. This is the key detail that lets you protect more money. If you have a savings account with $250,000 and a checking account with $250,000 at the same bank, both are fully covered because they are different account types. But if you have two savings accounts at the same bank with $150,000 in each, the FDIC adds them together and covers only $250,000 total.

FDIC coverage is automatic. You do not need to sign up, pay a fee, or do anything. When you open a savings account at a bank that displays the FDIC logo, you are covered up to the limit. The bank is required by law to carry this insurance.

Key Takeaways

  • The FDIC covers up to $250,000 per person at each bank, so if you have more than that, you need accounts at different banks to protect all of it.
  • The $250,000 limit is separate for each account type — a savings account and a checking account at the same bank are each covered up to $250,000.
  • Joint accounts are covered separately from individual accounts, so a joint savings account with your spouse gets its own $250,000 limit.
  • FDIC coverage is automatic and free; you do not need to register or take any action.
  • If a bank fails, the FDIC typically transfers your money to another bank or sends you a check within a few business days.

How the $250,000 limit works across multiple accounts

If you have more than $250,000 to keep safe, you can open accounts at different banks and each one will be covered separately. A savings account at Bank A with $250,000 is fully covered. A savings account at Bank B with $250,000 is also fully covered. The FDIC counts each bank as a separate entity, so your coverage does not overlap.

The tricky part is accounts at the same bank. If you have $150,000 in a savings account and $150,000 in a money market account at the same bank, the FDIC covers both in full because they are different account types. But if you have $150,000 in one savings account and $150,000 in another savings account at the same bank, the FDIC treats them as one account type and covers only $250,000 total across both.

Some people use online banks to spread their money. Online banks are FDIC-insured just like brick-and-branch banks. If you have $250,000 at an online bank and $250,000 at a traditional bank, both are covered in full because they are different institutions.

Joint accounts and FDIC coverage

A joint account — one you share with another person — gets its own $250,000 coverage limit. If you and your spouse have a joint savings account with $250,000, it is fully covered. If you also have an individual savings account in your name only with $250,000 at the same bank, that is also fully covered. The FDIC counts them separately because one is joint and one is individual.

Each person on a joint account is covered for their share. If you and your spouse have a joint account with $300,000, the FDIC covers the full $300,000 because joint accounts have their own $250,000 limit. However, if you are on multiple joint accounts at the same bank, the coverage for all joint accounts is added together and capped at $250,000.

What happens if your bank fails

Bank failures are rare in the United States. When one does happen, the FDIC steps in. If you have $250,000 or less in a savings account at that bank, you will receive the full amount. The FDIC usually transfers your account to another bank within a few business days, so you can keep using your debit card and online access without interruption.

If you have more than $250,000 at a failed bank, the FDIC covers $250,000 and you lose the rest. This is why spreading money across banks matters if you have large balances. The FDIC will contact you about any uninsured funds, but the money is gone unless the bank's assets recover enough to pay depositors a second time — which is uncommon.

Account types that have separate coverage limits

The FDIC recognizes several account types, and each one has its own $250,000 limit at the same bank. A savings account, a checking account, and a money market account are three separate types. A certificate of deposit (CD) is also separate. If you have $250,000 in a savings account, $250,000 in a checking account, and $250,000 in a CD at the same bank, all three are fully covered.

Retirement accounts like traditional IRAs and Roth IRAs are covered separately too. A traditional IRA with $250,000 at a bank is covered in full, and a Roth IRA with $250,000 at the same bank is also covered in full. This is one reason people use retirement accounts — they get their own coverage bucket.

Trust accounts have separate coverage as well. If you set up a savings account as a trust for your children, it gets its own $250,000 limit. This is different from a joint account or an account in your name alone.

FDIC coverage does not explore to investments

FDIC insurance covers money in savings accounts, checking accounts, money market accounts, and CDs. It does not cover stocks, bonds, mutual funds, or brokerage accounts, even if those accounts are held at a bank. If your bank offers investment services and you buy stocks through them, those stocks are not FDIC-insured.

Safe deposit boxes are also not covered by FDIC insurance. If you store valuables, documents, or cash in a safe deposit box at a bank, the FDIC does not protect them if the bank fails. Safe deposit boxes are the bank's responsibility, and coverage depends on the bank's own insurance policy.

How to check if your bank is FDIC-insured

Look for the FDIC logo on the bank's website or in the branch. Most traditional banks display it prominently. You can also search the FDIC's Bank Find tool on their website — type in the bank's name and it will tell you whether it is insured and what the coverage limits are for your specific accounts.

Credit unions are not FDIC-insured. Instead, they are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 coverage limit. If you bank at a credit union, look for the NCUA logo instead of the FDIC logo.

Frequently Asked Questions

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

The FDIC covers $250,000. The remaining $50,000 is not protected. To cover all $300,000, you would need to split it between two banks — $250,000 at Bank A and $50,000 at Bank B.

Does FDIC insurance cover money I owe the bank?

No. If you have a savings account with $100,000 and you owe the bank $50,000 on a loan, the bank can take the $50,000 from your savings to pay the debt. The FDIC covers what remains. This is called a setoff right.

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

Branches do not matter. If Bank A has 50 branches, all your accounts at any of those branches are treated as accounts at the same bank. The $250,000 limit applies to all your accounts at Bank A combined, regardless of which branch holds them.

Are savings accounts at online banks covered the same way?

Yes. Online banks are FDIC-insured the same as traditional banks. The $250,000 limit per account type applies. Because online banks are separate institutions from brick-and-mortar banks, you can have $250,000 at an online bank and $250,000 at a traditional bank, and both are fully covered.

If I add someone to my account, does my coverage increase?

No. Adding someone to an existing account does not change the $250,000 limit for that account. However, if you create a separate joint account with that person, the joint account gets its own $250,000 limit, which is different from your individual account limit.