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

The Federal Deposit Insurance Corporation insures $250,000 of your money 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, the FDIC covers the first $250,000. The remaining $250,000 is uninsured and at risk if the bank fails.

The $250,000 limit has been in place since 2010. Before that, the standard was $100,000. This amount does not change based on how long you have held the account, how much interest it earns, or the bank's size or reputation.

The coverage applies only to deposits held in your name alone. If you own the account jointly with another person, or if the account is held in trust, the rules change — and those changes can work in your favor.

Key Takeaways

  • The FDIC insures $250,000 per person, per bank, per account type, meaning you can have multiple insured accounts at the same bank if they are structured differently.
  • Money in a joint account is insured separately for each owner, so a joint savings account with two people can be insured up to $500,000 total.
  • Accounts held in trust for a beneficiary receive separate $250,000 coverage, allowing you to protect more money by naming beneficiaries on retirement accounts.
  • The FDIC does not insure money market accounts, stocks, bonds, or mutual funds, even if they are held at an FDIC-insured bank.
  • If you have more than $250,000 to protect, you can spread deposits across multiple banks or use different account ownership structures to stay within coverage limits.

How the $250,000 limit breaks down across account types

The FDIC treats different account structures as separate for insurance purposes. This means you can have more than $250,000 insured at the same bank if the money sits in different account categories.

A savings account in your name alone is one category. A joint savings account with your spouse is a separate category. A savings account held in trust for your child is yet another. Each one gets its own $250,000 coverage. If you have $250,000 in a personal savings account, $250,000 in a joint account with your spouse, and $250,000 in a trust account for your child, all three are fully insured at the same bank.

Retirement accounts — including traditional IRAs, Roth IRAs, and SEP-IRAs — are insured separately from regular savings accounts. The limit is still $250,000 per account type per bank, but the fact that it is a retirement account means it does not count against your personal savings coverage.

Checking accounts follow the same rules as savings accounts. The FDIC does not distinguish between them. If you have $200,000 in a checking account and $100,000 in a savings account at the same bank, both in your name alone, only $250,000 total is insured.

Joint accounts and how they double your coverage

When two people own a savings account together, the FDIC insures each owner's share separately. If you and your spouse have a joint account with $500,000, the FDIC covers $250,000 for you and $250,000 for your spouse — the full amount is protected.

This works because the FDIC insures based on ownership interest, not account balance. The bank must be able to prove that both owners have equal rights to the money. If the account is set up as "John and Jane Smith" with both names on the signature card, the coverage applies. If it is set up as "John Smith or Jane Smith," the same rule holds.

The joint account coverage is separate from any personal accounts you hold at the same bank. You could have $250,000 in a personal savings account and $500,000 in a joint account with your spouse at the same bank, and all $750,000 would be insured.

This protection ends if one owner dies. After death, the surviving owner's coverage reverts to the $250,000 individual limit for that account.

Trust accounts and beneficiary designations

A savings account held in trust for a beneficiary receives separate FDIC coverage of $250,000 per beneficiary named. If you set up a trust account for three children, each child's $250,000 share is insured separately, protecting up to $750,000 total in that one account.

The account must be formally titled as a trust for this coverage to explore. "In trust for" language on the account registration is what the FDIC looks for. A straightforward beneficiary designation on a regular savings account does not trigger this protection — the account is still insured as a personal account under the $250,000 limit.

Retirement accounts with named beneficiaries also receive separate coverage. A traditional IRA with your spouse named as beneficiary is insured up to $250,000 for the IRA itself, and your spouse's coverage as a beneficiary is separate if you have other accounts in their name.

What the FDIC does not cover

The FDIC insures deposits only — money sitting in savings accounts, checking accounts, money market deposit accounts, and certificates of deposit. It does not insure stocks, bonds, mutual funds, or exchange-traded funds, even if you buy them through your bank.

If your bank offers a brokerage service and you buy shares of a stock mutual fund, that investment is not FDIC-insured. It may be protected by the Securities Investor Protection Corporation (SIPC) if the brokerage fails, but that is a different insurance system with different limits.

Safe deposit boxes are not insured by the FDIC. The contents of a safe deposit box — jewelry, documents, cash — are not covered if the bank fails. Some homeowners or renters insurance policies cover safe deposit box contents, but you need to check your own policy.

Interest earned on an insured deposit is covered up to the $250,000 limit. If you have $249,000 in a savings account and earn $2,000 in interest, bringing the total to $251,000, only $250,000 is insured. The extra $1,000 is uninsured.

Spreading money across multiple banks to stay protected

If you have more than $250,000 to keep safe, you can open accounts at different FDIC-insured banks. Each bank's coverage is separate. $250,000 at Bank A and $250,000 at Bank B are both fully insured.

The bank's name is what matters, not the branch. If you have accounts at two branches of the same bank, they count as the same bank for FDIC purposes. The coverage does not increase.

Online banks are FDIC-insured the same way as brick-and-mortar banks. An online savings account at one bank and a savings account at a different online bank each receive $250,000 coverage. The fact that neither has a physical location does not change the insurance.

You can verify a bank's FDIC insurance status using the FDIC's Bank Find tool on their website. Search by bank name or location to confirm the bank is insured and to see the current coverage limits for different account types at that institution.

What happens if a bank fails and your money is uninsured

If a bank fails and you have uninsured deposits, you become an unsecured creditor. The FDIC pays insured depositors first, usually within one to two business days. Uninsured depositors wait for the bank's remaining assets to be liquidated, which can take months or years.

In most bank failures, uninsured depositors recover some money — often 70 to 90 cents on the dollar — but not all of it. The exact amount depends on how much the bank's assets sell for during the liquidation process. There is no may provide you will recover anything.

This is why the $250,000 limit exists: to protect ordinary savers from total loss. Amounts above that limit carry real risk. If you have $500,000 in a savings account at one bank, you are betting that the bank will not fail. If it does, you lose $250,000.

Frequently Asked Questions

Does FDIC coverage explore if I have money in multiple savings accounts at the same bank?

No. The FDIC adds up all savings accounts in your name alone at the same bank and insures the total up to $250,000. If you have three savings accounts with $100,000 each at the same bank, only $250,000 total is insured, not $250,000 per account. To protect more money, you need to use different account structures (joint, trust, retirement) or different banks.

If I name my child as a beneficiary on my savings account, does that increase my FDIC coverage?

Not unless the account is formally held in trust. A beneficiary designation on a regular savings account does not change the FDIC coverage — it is still insured as a personal account under the $250,000 limit. To get separate coverage for your child, you would need to set up the account as "In Trust For [child's name]" or open a custodial account in their name.

Are savings accounts at online banks covered by the FDIC?

Yes, as long as the online bank is FDIC-insured. Most online banks are insured the same way as traditional banks. You can check the FDIC Bank Find tool to confirm the bank is insured and see the coverage limits. Online banks often offer higher interest rates precisely because they have lower overhead costs, not because they are less safe.

What if I have $250,000 in a savings account and the bank pays me interest — is the interest covered?

The interest is covered only if the total (principal plus interest) stays at or below $250,000. If you have $249,000 and earn $2,000 in interest, bringing the balance to $251,000, the FDIC covers only $250,000. The extra $1,000 in interest is uninsured. This is rare in practice because savings account interest rates are very low.

Can I increase my FDIC coverage by putting money in a certificate of deposit instead of a savings account?

No. CDs are insured the same way as savings accounts — $250,000 per person, per bank, per account type. A CD in your name alone at one bank is insured up to $250,000, just like a savings account. The insurance limit does not change based on the type of deposit product you choose.