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

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks up to $250,000 per person, per institution. That limit applies to each account category separately — so you can have $250,000 in a savings account and another $250,000 in a checking account at the same bank, and both are covered. The key word is per bank: if you have $300,000 split across two different banks, both amounts are fully insured because they are at different institutions.

The $250,000 limit has been in place since 2010. Before that, the standard was $100,000. It was raised temporarily during the 2008 financial crisis and made permanent in 2010. The FDIC does not adjust this number for inflation, so it remains $250,000 regardless of economic conditions.

Money above the $250,000 limit at a single bank is not insured. If your bank fails, you lose access to the uninsured portion. This is not a common event — the FDIC has insured deposits since 1933 and bank failures are rare — but it is the actual risk you carry if you keep more than $250,000 at one institution.

Key Takeaways

  • The FDIC insures up to $250,000 per depositor, per bank, per account category, meaning a savings account and a checking account at the same bank are insured separately.
  • Money held in your name alone is insured differently from money held jointly with another person, so a joint account gives you an additional $250,000 of coverage at that bank.
  • Certain account types — retirement accounts, trust accounts, and accounts for businesses — have their own $250,000 limits and do not count against your personal savings coverage.
  • If you have more than $250,000 at one bank, the excess is uninsured and at risk if that bank fails.
  • The FDIC coverage applies only to member banks; credit unions are insured by the National Credit Union Administration (NCUA) under similar but separate rules.

How the $250,000 limit breaks down by account category

The FDIC divides accounts into categories, and you get $250,000 of coverage in each one at the same bank. The main categories are: deposits in your name alone, joint deposits, retirement accounts (IRAs and Roth IRAs), trust accounts, and accounts held for a business.

A concrete example: you have $250,000 in a savings account in your name alone, $250,000 in a joint checking account with your spouse, and $250,000 in a traditional IRA. All three are fully insured at the same bank because they fall into different categories. If you added a fourth account — say, another $100,000 in a savings account in your name alone — that fourth account would share the $250,000 limit with your first savings account. The two savings accounts together would have $350,000 in coverage, meaning $100,000 would be uninsured.

The category that matters most for most people is "deposits in your name alone." This covers savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs) held in your individual name. All of these accounts combined share one $250,000 limit per bank.

Joint accounts and coverage for married couples

A joint account — one held in the names of two or more people — gets its own $250,000 limit separate from each owner's individual accounts. If you and your spouse each have $250,000 in individual savings accounts and another $250,000 in a joint savings account at the same bank, all three accounts are fully insured. The joint account does not reduce the coverage on your individual account.

This means a married couple can have up to $750,000 insured at a single bank: $250,000 in the first spouse's name alone, $250,000 in the second spouse's name alone, and $250,000 in a joint account. Each person's share of the joint account is insured up to $250,000, so if the joint account holds $500,000, each spouse's $250,000 share is covered.

The joint account coverage applies only to accounts held by two or more people with equal rights to the funds. A savings account where one person is the owner and another is merely an authorized user does not may have access to for joint coverage; it falls under the owner's individual limit instead.

Retirement accounts and trust accounts have separate limits

Money in a traditional IRA, Roth IRA, SEP IRA, or straightforward IRA gets $250,000 of coverage per bank, separate from your individual account limit. This means you can have $250,000 in a regular savings account and $250,000 in an IRA at the same bank, and both are fully insured.

Trust accounts — accounts set up as a revocable living trust or payable-on-death (POD) account — also have their own $250,000 limit. The coverage for a trust account depends on the number of beneficiaries named in the trust. If your trust names one beneficiary, that beneficiary's share is insured up to $250,000. If it names five beneficiaries, each beneficiary's share is insured up to $250,000, meaning the trust account itself can hold up to $1.25 million and be fully insured.

Business accounts held in the name of a sole proprietorship, partnership, or corporation have their own $250,000 limit as well. A business checking account does not count against your personal savings coverage.

What happens when you exceed $250,000 at one bank

If you have $300,000 in a savings account at one bank, the FDIC insures $250,000 and leaves $50,000 uninsured. If the bank fails, you receive the insured $250,000 from the FDIC, usually within a few business days. The uninsured $50,000 becomes part of the bank's failed assets and may be recovered later if the bank's assets are sold, but there is no may provide.

The FDIC does not freeze your account or prevent you from depositing more than $250,000. The insurance limit is a protection that applies only if the bank fails. In normal circumstances, you can access all your money whenever you want. The uninsured portion straightforward carries the risk of loss if the institution becomes insolvent.

Bank failures are uncommon in the modern era. The FDIC has been in operation since 1933, and the number of bank failures has declined significantly since the 2008 financial crisis. However, the risk is real, and keeping more than $250,000 at a single institution means accepting that risk for the excess amount.

Spreading money across multiple banks to increase coverage

If you have $500,000 in savings, you can insure all of it by splitting it across two banks: $250,000 at Bank A and $250,000 at Bank B. Each bank's deposit is fully insured because the FDIC limit applies per bank, not per person. You can open accounts at as many banks as you want and insure $250,000 at each one.

Some people use a service called IntraFi (formerly Promontory Interbank Network) to spread deposits across multiple banks automatically. You deposit money into an IntraFi account at a partner bank, and IntraFi divides it among multiple FDIC-insured banks behind the scenes. If you deposit $500,000, IntraFi splits it into two $250,000 deposits at two different banks, both fully insured. You see one account balance on your statement, but your money is actually held at multiple institutions. IntraFi charges a small fee, usually around 0.25% to 0.50% per year.

Most people do not need IntraFi. If you have more than $250,000 in savings, opening a savings account at a second bank is free and takes a few minutes. You keep full control of your money and avoid the fee. IntraFi is useful mainly for people with very large deposits who want to avoid managing multiple accounts.

Credit unions and the NCUA instead of the FDIC

Credit unions are not insured by the FDIC. Instead, they are insured by the National Credit Union Administration (NCUA), a separate federal agency. The NCUA coverage limit is also $250,000 per member, per credit union, per account category — the same as the FDIC — but the two systems are independent.

If you have $250,000 at a bank and $250,000 at a credit union, both are fully insured because they are covered by different insurance systems. You do not need to choose between the two; you can use both. The NCUA website has a tool to verify whether a credit union is insured, just as the FDIC has a tool to verify banks.

Most credit unions are NCUA-insured, but a small number are insured by private insurance or state insurance programs. Before opening an account at a credit union, check the NCUA's website or ask the credit union directly whether it is federally insured.

How to check your coverage and verify your bank is FDIC-insured

The FDIC provides a tool called the FDIC Electronic Deposit Insurance Estimator (EDIE) on its website. You enter your bank name, account types, and balances, and EDIE calculates how much of your money is insured. It takes a few minutes and gives you a clear picture of any uninsured amounts.

You can also verify that your bank is FDIC-insured by searching the FDIC's Bank Find tool on its website. Enter your bank's name, and the tool shows whether it is a member bank and which FDIC region covers it. If your bank does not appear in the search, it is not FDIC-insured, and you should move your money.

Most major banks and credit unions are insured, but some online banks, foreign banks operating in the United States, and smaller institutions may not be. It takes 30 seconds to verify, and it is worth doing if you are opening an account at an unfamiliar institution.

Frequently Asked Questions

Does FDIC insurance cover money in a safe deposit box?

No. Safe deposit boxes and their contents are not insured by the FDIC. The box itself is protected from theft and damage by the bank, but if the bank fails, the contents are not covered by federal insurance. Money should be kept in a deposit account (savings, checking, or money market), not in a safe deposit box, if you want FDIC protection.

If I have $300,000 at one bank, can I move $50,000 to another bank and get it insured retroactively?

No. FDIC coverage is calculated based on your balance at the moment the bank fails. If you move money after the failure, it does not change the coverage on the account that failed. You must move money to a different bank before a failure occurs to protect it. The FDIC does not insure money retroactively or based on transfers made after the fact.

What if my bank is bought by another bank — do I lose coverage?

No. When one bank acquires another, the FDIC typically provides what is called "transaction account coverage" for six months after the merger. This means deposits that would normally be uninsured are temporarily insured up to the full balance for six months, giving you time to move money if needed. After six months, coverage reverts to the standard $250,000 limit. You should review your coverage after any bank merger and move money if necessary.

Does FDIC insurance cover investment accounts or brokerage accounts?

No. FDIC insurance covers only deposit accounts: savings accounts, checking accounts, money market accounts, and CDs. Stocks, bonds, mutual funds, and other investments held at a brokerage are not FDIC-insured. Brokerage accounts are protected by the Securities Investor Protection Corporation (SIPC) under different rules and limits.

If I have a CD that matures after my bank fails, am I still insured?

Yes. CDs are treated as deposits and are insured up to $250,000, even if they have not yet matured. If your bank fails while your CD is still in the term, the FDIC pays you the full insured amount, including any accrued interest up to the maturity date. You do not lose the interest that would have been paid.