Most checking accounts are insured up to $250,000 per depositor, per bank

The Federal Deposit Insurance Corporation (FDIC) insures checking accounts at member banks. If the bank fails, the FDIC pays you back up to $250,000 for each account category you hold at that bank. This limit applies per person, per institution — not per account. So if you have two checking accounts at the same bank, the FDIC combines them and insures the total up to $250,000.

The $250,000 limit has been in place since 2010. It covers the balance in your account plus any interest earned, as long as the bank is an FDIC member. Most banks are members, but not all — credit unions use a different system called NCUA insurance. You can check whether a specific bank is FDIC-insured on the FDIC's website by searching the bank name.

FDIC insurance is automatic. You do not need to sign up, pay a fee, or do anything to set up it. If your bank fails, the FDIC contacts you directly. In practice, bank failures are rare and FDIC payouts are rarer still — the last significant wave of failures was in 2008 and 2009.

Key Takeaways

  • FDIC insurance covers up to $250,000 per depositor at each bank, and this coverage is automatic with no action required on your part.
  • The limit applies to the combined total of all checking accounts you hold at the same bank, not to each account separately.
  • Money market accounts and savings accounts at the same bank are insured separately from checking accounts, each up to $250,000.
  • If you have more than $250,000 at one bank, you can increase coverage by opening accounts in different ownership categories, such as a joint account or a retirement account.
  • Credit unions are not FDIC-insured; they use NCUA insurance instead, which works the same way but is a separate program.

How the $250,000 limit works when you have multiple accounts

The FDIC counts all checking accounts you own individually at the same bank as one account for insurance purposes. If you have a checking account with $150,000 and a second checking account with $120,000 at the same bank, the FDIC insures only $250,000 of the combined $270,000. You lose $20,000 of coverage.

However, accounts in different ownership categories are insured separately. A checking account in your name alone is insured separately from a joint checking account you share with your spouse, which is insured separately from a checking account held in trust for someone else. Each category gets its own $250,000 limit at the same bank.

Savings accounts, money market accounts, and certificates of deposit (CDs) are also insured separately from checking accounts. So you could have $250,000 in a checking account, $250,000 in a savings account, and $250,000 in a money market account at the same bank, and all three would be fully insured.

What happens if you have more than $250,000 to protect

If you have more than $250,000 in cash, you can spread it across multiple banks to keep all of it insured. Each bank provides a separate $250,000 of coverage. So $250,000 at Bank A and $250,000 at Bank B are both fully insured.

You can also use different ownership categories at the same bank. A joint account with your spouse gets $250,000 of coverage, a separate account in your name alone gets another $250,000, and an account held in trust for your child gets a third $250,000 — all at the same bank. The FDIC has a calculator on its website that shows you exactly how much coverage you have based on your account setup.

Some people use both strategies: multiple banks and multiple ownership categories. This is common for business owners, retirees with large savings, or families managing inherited money. The FDIC's website has detailed rules for each ownership type, including revocable trusts, irrevocable trusts, and accounts for self-employed people.

What FDIC insurance does not cover

FDIC insurance covers the money in the account, but not the investments held inside it. If your bank offers a brokerage service and you buy stocks, bonds, or mutual funds through that service, those investments are not FDIC-insured. They are covered under a different system called SIPC (Securities Investor Protection Corporation) if the brokerage fails, but that is a separate protection with different limits.

Safe deposit boxes are not insured by the FDIC either. If you store jewelry, documents, or other valuables in a safe deposit box at your bank, the FDIC does not cover them if the bank fails. You would need a separate homeowners or renters insurance policy to cover those items.

FDIC insurance also does not cover money you owe the bank. If you have a loan with the bank and a checking account at the same bank, the bank can use money from your account to pay down the loan before the FDIC pays you. This is called "setoff" and it is legal.

How to verify your bank is FDIC-insured

Search for your bank on the FDIC's Bank Find tool at fdic.gov. Type in the bank name and your state. The tool shows you whether the bank is an FDIC member, when it joined, and what its insurance certificate number is. If the bank does not appear in the search results, it is not FDIC-insured.

You can also look for the FDIC logo on the bank's website or in its branch. Most FDIC-insured banks display the logo prominently. However, the absence of a logo does not mean the bank is not insured — some banks straightforward do not display it. The Bank Find tool is the definitive source.

If you are opening a new account, ask the bank directly whether it is FDIC-insured. The bank is required to tell you. Many online banks are FDIC-insured even though they have no physical branches, so do not assume an online bank is uninsured.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in as the receiver. In most cases, another bank buys the failed bank's deposits and customers are transferred automatically. You keep your account, your debit card keeps working, and your money stays insured. The transition usually happens over a weekend.

If no bank buys the deposits, the FDIC pays you directly. The FDIC has up to 13 months to send you a check for your insured balance, though in practice it usually happens within a few weeks. During that time, you cannot access your money, so you should have other funds available if this happens.

The FDIC maintains a list of failed banks on its website. Since 2000, fewer than 600 banks have failed in the United States. The FDIC has never run out of money to pay depositors.

NCUA insurance for credit union accounts

Credit unions are not FDIC members. Instead, they are insured by the National Credit Union Administration (NCUA), a separate federal agency. NCUA insurance works the same way as FDIC insurance: it covers up to $250,000 per member, per credit union, and it is automatic.

The same rules about multiple accounts and ownership categories explore to NCUA insurance. If you have two checking accounts at the same credit union, they are combined for insurance purposes. If you have a checking account and a savings account at the same credit union, they are insured separately.

You can check whether a credit union is NCUA-insured by searching the NCUA's credit union locator tool at ncua.gov. Most credit unions are NCUA-insured, but a small number are state-insured only. State insurance varies by state and may offer less protection than NCUA insurance.

Frequently Asked Questions

If I have $300,000 in a checking account at one bank, how much is insured?

The FDIC insures $250,000. The remaining $50,000 is not insured. To protect all $300,000, you would need to move $50,000 to a different bank, or open a joint account or trust account at the same bank (each gets its own $250,000 limit).

Does FDIC insurance cover money I deposited yesterday?

Yes. FDIC insurance covers all money in the account as of the moment the bank fails, regardless of when you deposited it. There is no waiting period.

What if my bank is sold to another bank — do I lose my FDIC coverage?

No. Your coverage continues with the new bank. The FDIC recognizes the transfer and your balance remains insured up to $250,000. You may receive a new debit card and account number, but your coverage does not change.

Are online banks FDIC-insured?

Many are, but not all. Search the bank name in the FDIC's Bank Find tool to confirm. Online banks that are FDIC members receive the same $250,000 coverage as brick-and-mortar banks.

If I have accounts at two different branches of the same bank, are they insured separately?

No. The FDIC insures by bank, not by branch. Two checking accounts at different branches of the same bank are combined and insured as one account up to $250,000 total.