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

The Federal Deposit Insurance Corporation (FDIC) covers up to $250,000 of your money in a savings account at any single bank. That limit applies to each account category separately — so you can have $250,000 covered in a savings account and another $250,000 covered in a checking account at the same bank, and both are fully protected if the bank fails.

The $250,000 figure is a hard ceiling. If you have $300,000 in one savings account at one bank, the FDIC insures $250,000 and you lose the remaining $50,000 if that bank collapses. The coverage does not increase based on how long you have held the account, how much interest you earn, or your relationship with the bank.

This protection applies only to the bank itself failing — not to fraud, theft, or your own mistakes. If someone steals your debit card and drains your account, that is a separate dispute process. If you wire money to a scammer, the FDIC does not reimburse you.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor per bank per account category, meaning you can have multiple accounts at the same bank and each category is covered separately.
  • Money in a savings account and money in a checking account at the same bank are insured separately, so you can protect $500,000 total across both if you max out each one.
  • Joint accounts are insured separately from individual accounts, so a joint savings account and an individual savings account at the same bank each get their own $250,000 coverage.
  • If you have more than $250,000 at one bank, the excess is not covered — moving the overage to a different bank is the only way to protect it under FDIC insurance.
  • FDIC coverage protects you only if the bank fails; it does not cover fraud, theft, or money you send to scammers.

How account categories affect your coverage

The FDIC recognizes several account categories, and each one has its own $250,000 limit at the same bank. The most common are single accounts (in your name alone), joint accounts (shared with another person), and retirement accounts (IRAs and similar). If you have a savings account in your name and a joint savings account with your spouse at the same bank, you have $250,000 coverage on each — $500,000 total.

A revocable trust account is also a separate category. If you have set up a payable-on-death (POD) account or a trust account, that coverage is distinct from your individual account coverage. The rules for trust accounts are more complex: the FDIC covers up to $250,000 per beneficiary named in the trust, up to a total of $250,000 per trust per bank.

Business accounts are a separate category as well. If you own a business and have a business checking account at a bank where you also have a personal savings account, the business account gets its own $250,000 coverage. The personal account is not affected.

What happens if you exceed the limit at one bank

If you have $300,000 in a savings account at Bank A, only $250,000 is insured. The remaining $50,000 is at risk if Bank A fails. You do not get a warning, and the bank has no obligation to tell you that you are over the limit. The FDIC website has a tool called the FDIC Electronic Deposit Insurance Estimator (EDIE) that lets you enter your account details and see exactly how much is covered, but you have to use it yourself.

The simplest way to protect money over $250,000 is to move the excess to a different bank. If you have $300,000, keep $250,000 at Bank A and move $50,000 to Bank B. Now both amounts are fully covered. You can do this with as many banks as you need — there is no limit on how many banks you can use or how much total money you can have insured across multiple institutions.

Some people use a strategy called "laddering" across banks to keep large sums protected. If you have $1 million in savings, you could split it across four banks ($250,000 each) and have full FDIC coverage on all of it. The tradeoff is managing multiple accounts and potentially earning different interest rates at each bank.

Coverage for joint accounts and accounts with multiple owners

A joint account — one held in the names of two or more people — is insured separately from individual accounts. If you and your spouse have a joint savings account with $300,000 at Bank A, and you also each have individual savings accounts at the same bank, the coverage breaks down like this: the joint account is covered up to $250,000, and each individual account is covered up to $250,000. You could have up to $750,000 insured across those three accounts at one bank.

The FDIC insures the joint account as a unit, not per person. If the account has $300,000 and the bank fails, the FDIC pays out $250,000 total to the account, not $250,000 per owner. The owners then divide that payout according to their ownership agreement or state law.

If you are listed as a beneficiary on someone else's account but do not own it, that does not count toward your coverage. Beneficiary designations (like POD accounts) are treated as separate accounts for insurance purposes, but the coverage is tied to the account itself, not to you as an individual.

Retirement accounts and special account types

Individual Retirement Accounts (IRAs) — both traditional and Roth — are insured separately from regular savings and checking accounts. You can have $250,000 in an IRA and another $250,000 in a savings account at the same bank, and both are fully covered. This applies to SEP-IRAs and straightforward IRAs as well.

Coverdell Education Savings Accounts (ESAs) are also a separate category. If you have an ESA for your child and a regular savings account in your own name at the same bank, each gets $250,000 coverage.

Health Savings Accounts (HSAs) held at a bank are covered as a separate category too. The rules are the same: $250,000 per HSA per bank, separate from your other accounts.

What the FDIC does not cover

FDIC insurance covers the bank failing, not your money being stolen or lost to fraud. If a scammer tricks you into wiring $50,000 to their account, the FDIC does not reimburse you — that is a dispute between you and your bank, handled through a different process. If someone uses your debit card without permission, that is also outside FDIC coverage; you would file a dispute with your bank instead.

Investments held at a bank are not covered by FDIC insurance. If your bank sells you stocks, bonds, mutual funds, or other securities, those are not FDIC-insured. The bank itself is insured, but the investments are not. Money market accounts that are structured as investments rather than deposits may also fall outside FDIC coverage — check with your bank if you are unsure.

Cryptocurrency held at a bank or exchange is not FDIC-insured. Neither are safe deposit boxes or their contents. If you keep valuables in a safe deposit box at a bank and the bank fails, the FDIC does not cover the contents.

How to check your coverage and manage multiple accounts

The FDIC's Electronic Deposit Insurance Estimator (EDIE) is a free tool on the FDIC website where you can enter details about your accounts — the bank name, account type, balance, and ownership structure — and see exactly how much is covered. You do not need to log in or provide personal information; it is purely a calculation tool. If you have accounts at multiple banks or in different categories, running through EDIE takes a few minutes and gives you a clear picture of where you stand.

If you have more than $250,000 at one bank and want to keep it all insured, the safest approach is to split it across banks. Open a savings account at a second bank and move the excess there. You can do this online with most banks in a day or two. Keep a straightforward spreadsheet listing each bank, account type, and balance so you can track your coverage at a glance.

If you are married and considering joint accounts, remember that a joint account is insured as a single unit, not per person. If you and your spouse each have $250,000 in individual accounts and want to combine them into one joint account, you would lose coverage on $250,000 of that money. Keeping separate accounts preserves the full coverage for both of you.

Frequently Asked Questions

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

The FDIC typically returns insured deposits within one to two business days of a bank failure. In most cases, your money is available in a new account at another bank almost when ready. The FDIC has a process in place to move deposits quickly, so you are not left without access to your funds for long.

Does FDIC coverage explore if I have money in a savings account and a money market account at the same bank?

It depends on how the money market account is structured. If it is a deposit account (not an investment), it is a separate category from savings, so you get $250,000 coverage on each. If it is structured as an investment product, it is not FDIC-insured. Ask your bank directly whether your money market account is a deposit or an investment.

Can I get more coverage by putting money in different names at the same bank?

Yes, but only in specific ways. A joint account is separate from an individual account, so you can have $250,000 in your name and $250,000 in a joint account with someone else at the same bank. However, you cannot create fake accounts or use someone else's name without their knowledge — that is fraud and does not increase your legitimate coverage.

What if I have a trust account with multiple beneficiaries?

Trust accounts are covered up to $250,000 per beneficiary, with a total limit of $250,000 per trust per bank. If your trust names three beneficiaries, the FDIC does not triple your coverage — the total across all beneficiaries is still $250,000. The rules for trusts are complex, so use the FDIC's EDIE tool or call the FDIC directly if you have a large trust account.

If I move money between banks, do I lose coverage during the transfer?

No. Once you initiate a transfer, the money is in transit and still covered by FDIC insurance at both banks during the move. The coverage does not lapse. However, make sure the receiving bank has room under the $250,000 limit before you transfer — if you move $100,000 into an account that already has $200,000, only $50,000 of the new money is covered.