The FDIC covers up to $250,000 per depositor, per bank, per account category
The Federal Deposit Insurance Corporation (FDIC) insures your savings account balance up to $250,000. That limit applies to you as an individual at each bank where you hold an account. If you have $300,000 in savings at one bank, the FDIC covers $250,000 and you absorb the loss on the remaining $50,000 if that bank fails.
The $250,000 limit is per depositor, per insured bank, per account category. This means the same person can have multiple $250,000-insured accounts at the same bank if they are in different categories — for example, a personal savings account and a joint account with a spouse are counted separately. But two personal savings accounts at the same bank are added together and covered as one $250,000 total.
FDIC insurance is automatic. You do not need to register, explore, or do anything. If your bank fails, the FDIC pays depositors directly, usually within a few business days.
Key Takeaways
- The FDIC insures up to $250,000 per person per bank per account category, and this limit has been in place since 2010.
- Multiple account categories at the same bank — such as individual, joint, and retirement accounts — are insured separately, so you can have more than $250,000 covered at one institution.
- Money market accounts, savings accounts, and checking accounts are all insured the same way; the account type does not change the $250,000 limit.
- Balances above $250,000 at a single bank are not insured by the FDIC, so splitting money across multiple banks is the only way to protect amounts larger than that.
How the $250,000 limit breaks down across account categories
The FDIC recognizes several account categories, and each one has its own $250,000 coverage limit at the same bank. A single depositor can hold accounts in multiple categories and be fully insured for each one.
The main categories are: single (individual) accounts, joint accounts, retirement accounts (IRAs and Roth IRAs), trust accounts, and accounts held in the name of a business. A husband and wife can each have a $250,000 individual account at the same bank, and also have a $250,000 joint account together — that is $750,000 total coverage at one institution. A retirement account held by the same person is insured separately, adding another $250,000.
The category that matters most to most people is the single account. If you are the only person on the account, it falls into the single category. If someone else is also a depositor on the account — meaning they can withdraw money without your permission — it is a joint account and gets its own $250,000 limit.
What happens when you exceed $250,000 at one bank
If your balance goes above $250,000 at a single bank in a single category, only $250,000 is insured. The bank does not warn you when you cross the threshold, and the FDIC does not contact you. You are responsible for knowing your balance and understanding the limit.
The uninsured portion is still your money — the bank holds it and you can withdraw it. The risk only materializes if the bank fails. In that case, the FDIC pays you $250,000 and you lose the rest. Bank failures are rare in the modern U.S., but they do happen. Since 2008, more than 500 banks have failed.
The safest approach for balances above $250,000 is to split the money across multiple FDIC-insured banks. A person with $500,000 in savings could keep $250,000 at Bank A and $250,000 at Bank B, and both amounts would be fully insured. The banks do not have to be different brands — you could use two branches of the same bank holding company if they are separate legal entities, but this requires verification because some holding companies operate as a single insured bank.
Account types that are and are not FDIC-insured
Most deposit accounts at banks are FDIC-insured: savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). The account type does not change the $250,000 limit. A $250,000 CD and a $250,000 savings account at the same bank in the same category are added together and covered as one $250,000 total.
Accounts that are not FDIC-insured include brokerage accounts, investment accounts, stocks, bonds, mutual funds, and cryptocurrency held at a bank. If your bank offers a brokerage service and you buy stocks through it, those stocks are not covered by FDIC insurance. The bank's deposit accounts are insured, but anything held as a security or investment is not.
Some banks offer sweep accounts that move money between a deposit account (insured) and a money market fund (not insured) to earn higher interest. The deposit portion is insured up to $250,000, but the fund portion is not. Read the account terms to understand where your money sits.
How to verify your bank is FDIC-insured
Not every bank is FDIC-insured. Credit unions are insured by the National Credit Union Administration (NCUA), not the FDIC, and the coverage limits are the same ($250,000 per depositor per institution per category). Some online banks and smaller institutions are not insured at all.
You can check whether a specific bank is FDIC-insured by visiting the FDIC's Bank Find tool on their website. Enter the bank name and your state, and the tool will show you whether it is insured, the insurance certificate number, and the main office location. If a bank does not appear in the search, it is not FDIC-insured.
For credit unions, the NCUA maintains a similar search tool. If you are unsure which regulator covers your institution, ask the bank directly or check your account statements — FDIC-insured banks are required to display the FDIC logo and insurance notice.
What FDIC insurance does not cover
FDIC insurance covers the balance in your account if the bank fails. It does not cover fraud, theft, or unauthorized withdrawals. If someone steals your debit card and drains your account, the FDIC does not reimburse you — your bank's fraud protection policy does, and those rules vary by institution.
FDIC insurance also does not cover losses from poor investment decisions, interest rate changes, or account fees. If you buy a CD at a low interest rate and rates rise, the FDIC does not compensate you for the opportunity cost. If your bank charges monthly fees that reduce your balance, that is a contract issue between you and the bank, not an FDIC matter.
The insurance also does not explore to money you have not yet deposited. If you are promised a return on an investment or a loan, and the bank fails before you receive it, you have no FDIC protection on that promised amount.
Frequently Asked Questions
If I have $300,000 in one savings account, how much is insured?
$250,000 is insured by the FDIC. The remaining $50,000 is uninsured. If the bank fails, you receive $250,000 from the FDIC and lose the $50,000. To protect the full amount, move $50,000 to a different FDIC-insured bank.
Are joint accounts insured separately from individual accounts?
Yes. A joint account has its own $250,000 limit, separate from any individual account you hold at the same bank. If you and your spouse each have a $250,000 individual account and a $250,000 joint account at the same bank, all $750,000 is insured.
Is my money at an online bank insured the same way as at a traditional bank?
Yes, if the online bank is FDIC-insured. Most major online banks are FDIC-insured and follow the same $250,000 per depositor per category rules. Check the bank's website or use the FDIC Bank Find tool to confirm.
What happens to my FDIC insurance if I move money between accounts at the same bank?
The $250,000 limit applies to your total balance in each category at that bank, regardless of how many accounts you split it across. Moving $100,000 from one savings account to another savings account at the same bank does not change your coverage — you still have $250,000 insured total in the single account category.
Does FDIC insurance cover money I have on hold or pending deposit?
No. FDIC insurance covers money that is actually in your account. Funds you have transferred but that have not yet cleared, or money you have been promised but not yet received, are not insured until they are deposited and the transaction settles.