How Much Money the FDIC Actually Protects in Your Bank Account

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

The Federal Deposit Insurance Corporation (FDIC) protects your money if the bank fails, but only up to a limit. That limit is $250,000 per depositor, per insured bank, per account category. This means if you have $300,000 in a checking account at one bank, the FDIC covers $250,000 and you lose the other $50,000.

The $250,000 limit has been in place since 2010. Before that it was $100,000. If you have more than $250,000 at one bank, you need to understand how account categories work — because the limit resets for each type of account you hold at that same bank.

The FDIC does not cover stocks, bonds, mutual funds, or safe deposit boxes. It covers only deposit accounts: checking, savings, money market accounts, and certificates of deposit (CDs). If your bank also sells investments, those are not FDIC-insured.

Key Takeaways

The FDIC insures $250,000 per person, per bank, per account category — so you can have $250,000 in a checking account and another $250,000 in a savings account at the same bank, both fully covered.
If you are married or have a joint account, your spouse's $250,000 limit is separate from yours, so a joint account gets $250,000 of coverage that belongs to both of you together.
Money in a trust account, a retirement account (IRA), or an account held for a minor child each have their own $250,000 limits at the same bank.
If you have more than $250,000 at one bank, you can spread the excess to another FDIC-insured bank to protect it all.
The FDIC does not cover investment products like stocks or mutual funds, even if your bank sells them.

How account categories create separate coverage limits

The reason you can have more than $250,000 at one bank and still be fully covered is that the FDIC counts each account category separately. A single account holder can have multiple categories at the same bank, and each one gets its own $250,000 limit.

The main categories are: single accounts (held in your name alone), joint accounts (held with another person), retirement accounts (IRAs and Roth IRAs), trust accounts, and accounts held for a minor child. If you have $250,000 in a checking account in your name and $250,000 in a joint savings account with your spouse at the same bank, both are fully covered because they are different categories.

A joint account is covered up to $250,000 total for both owners together, not $250,000 each. So if you and your spouse have a joint savings account with $300,000, the FDIC covers $250,000 of that one account. But if you each also have individual checking accounts at the same bank, each of your individual accounts gets its own $250,000 coverage.

What happens if you have more than $250,000 at one bank

If you have $400,000 in a savings account at one bank, the FDIC covers only $250,000. The other $150,000 is at risk if the bank fails. The simplest way to protect all of it is to move the excess to a different FDIC-insured bank.

You do not need to move the money to a different type of bank — any FDIC-insured bank counts as a separate institution for coverage purposes. So you could keep $250,000 at Bank A and move $150,000 to Bank B, and both amounts would be fully covered. The FDIC website has a tool called the FDIC BankFind Suite where you can search for FDIC-insured banks in your area.

Some people use a service called a sweep account or deposit sweep program to automate this. The bank moves money above a certain threshold to partner banks automatically, so you do not have to manage multiple accounts yourself. Ask your bank whether they offer this service.

Retirement accounts and trust accounts have their own rules

An Individual Retirement Account (IRA) — whether a traditional IRA or a Roth IRA — is covered separately from your other accounts at the same bank. So you could have $250,000 in a regular savings account and another $250,000 in an IRA at the same bank, and both would be fully covered.

A revocable trust account (a common type of trust used in estate planning) is also covered separately. If you set up a trust account at your bank and fund it with $250,000, that amount is covered in addition to any other accounts you hold in your own name.

Inherited IRAs and certain other retirement account types have different coverage rules. If you inherited an IRA from someone other than your spouse, it is covered separately from your own IRA, but the coverage limit is still $250,000. If you are unsure whether your specific account type qualifies for separate coverage, contact your bank or the FDIC directly.

Joint accounts and married couples

A joint account is insured as a single unit up to $250,000, not $250,000 per person. If you and your spouse have a joint checking account with $300,000, the FDIC covers $250,000 of that account. The other $100,000 is not covered.

However, if you and your spouse each have individual accounts at the same bank, those are separate. Your individual account is covered up to $250,000, and your spouse's individual account is covered up to another $250,000. So a married couple can have $250,000 in a joint account plus $250,000 in the husband's individual account plus $250,000 in the wife's individual account at the same bank — all fully covered.

If you are married and want to protect more than $250,000 in a joint account, you can open a second joint account at a different FDIC-insured bank. Each joint account at a different bank gets its own $250,000 coverage.

What the FDIC does not cover

The FDIC covers only money in deposit accounts. It does not cover stocks, bonds, mutual funds, or any other investment product — even if you bought them through your bank. If your bank has a brokerage division and you buy 100 shares of a stock, that is not FDIC-insured.

Safe deposit boxes are also not covered. If you keep cash, jewelry, or documents in a safe deposit box at your bank and the bank fails, the FDIC does not protect the contents. Safe deposit boxes are covered only by the bank's own insurance, which varies by bank.

Money held in a business account is covered separately from personal accounts, but only up to $250,000 per business. If you own a sole proprietorship and have a business checking account with $400,000, the FDIC covers only $250,000 of it.

How to check if your bank is FDIC-insured

Not all banks are FDIC-insured. Credit unions are insured by a different agency called the National Credit Union Administration (NCUA), which has similar coverage limits. Online banks, traditional banks, and most community banks are FDIC-insured, but you should verify before you open an account.

The FDIC BankFind Suite is a free search tool on the FDIC website. You can search by bank name or location to see whether a specific bank is insured and what its official name is for insurance purposes. This matters because the FDIC insures by the bank's legal name, not its brand name — so if a bank operates under multiple names, you need to know which legal entity holds your account.

When you open an account, the bank should provide you with a disclosure statement that says whether it is FDIC-insured. If you do not see this information, ask the bank directly or check the FDIC BankFind tool.

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 after the bank closes. In most cases, your money is available in a new account at another bank almost when ready. The FDIC has a process for transferring deposits quickly, so you should not be without access to your covered funds for long.

Does the FDIC cover money I owe the bank, like overdraft fees?

No. The FDIC covers only the money you have deposited. If you owe the bank money — through overdrafts, loans, or other debts — the bank can use your deposits to pay off what you owe before the FDIC steps in. This is called "setoff," and it reduces the amount the FDIC covers.

If I have $250,000 in a CD that matures, am I still covered?

Yes. A certificate of deposit (CD) is a deposit account and is covered up to $250,000 just like a savings account. When the CD matures and you withdraw the money or move it to another account, it remains covered as long as it stays in a deposit account at an FDIC-insured bank.

Are savings accounts at online banks covered the same way as brick-and-mortar banks?

Yes, as long as the online bank is FDIC-insured. Many online banks offer higher interest rates because they have lower overhead costs, but the FDIC coverage is identical. Check the FDIC BankFind tool to confirm the bank is insured before you open an account.

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

Branches do not matter for FDIC coverage. All branches of the same bank are treated as one institution. If you have $200,000 at the downtown branch and $100,000 at the uptown branch of the same bank, the FDIC covers only $250,000 total across both branches combined.

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.