Your savings account is insured up to $250,000 per account owner, per bank, through the FDIC — but only if your bank is FDIC-insured and only for the types of accounts the FDIC covers.

The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects your money if a bank fails. When a bank closes, the FDIC pays depositors from an insurance fund, not from the bank's remaining assets. This protection is automatic — you do not need to sign up or pay a fee.

The catch is that not every dollar in your account is covered. The FDIC insures up to $250,000 per depositor, per bank, per account category. If you have $300,000 in a savings account at one bank, only $250,000 is protected. The remaining $100,000 is not covered by the FDIC.

Your bank may or may not be FDIC-insured. Most banks are, but some are not. Credit unions use a similar system called NCUA insurance (National Credit Union Administration), which works the same way. Before you open an account, you can check whether a bank is FDIC-insured on the FDIC's website or by asking the bank directly.

Key Takeaways

  • FDIC insurance covers up to $250,000 per person, per bank, per account type, and is automatic at FDIC-insured banks.
  • You can check whether a specific bank is FDIC-insured by searching the FDIC's BankFind tool or asking the bank.
  • Money market accounts, savings accounts, and checking accounts are all covered by FDIC insurance, but money market mutual funds are not.
  • If you have more than $250,000 at one bank, you can protect additional money by opening accounts in different names or categories.
  • The FDIC does not cover safe deposit boxes, stocks, bonds, mutual funds, or cryptocurrency held at a bank.

How to check if your bank is FDIC-insured

The fastest way is to visit BankFind on the FDIC website (fdic.gov). Enter your bank's name and state, and the tool will tell you whether it is FDIC-insured and show you the insurance limits for each account you hold there. You can also call your bank and ask directly — they are required to tell you.

If your bank is not FDIC-insured, your deposits are not protected by the FDIC if the bank fails. This is rare for traditional banks but more common for online-only banks or very new institutions. Before opening an account, check the bank's website or call them to confirm FDIC status.

What counts as one account for insurance purposes

The FDIC groups accounts into categories, and you get $250,000 of coverage in each category at the same bank. A savings account and a checking account are different categories, so you can have $250,000 in each and both are fully covered. A money market account is treated as a savings account for insurance purposes.

If you have two savings accounts at the same bank, they are added together and count as one account. So if you have $150,000 in one savings account and $120,000 in another savings account at the same bank, only $250,000 total is covered — the remaining $20,000 is not.

Joint accounts (accounts held with another person) are insured separately from individual accounts. If you and your spouse each have $250,000 in individual savings accounts at the same bank, both are fully covered. If you have a joint savings account with $250,000, that is also fully covered as a separate account.

What the FDIC does not cover

FDIC insurance covers the money in the account, not the things you buy with it. Stocks, bonds, mutual funds, and investment products held at a bank are not FDIC-insured, even if you bought them through the bank. If you buy a mutual fund through your bank's investment service, that mutual fund is not protected by the FDIC if the bank fails.

Safe deposit boxes are also not covered. If you store jewelry, documents, or cash in a safe deposit box and the bank fails, the FDIC does not reimburse you. Cryptocurrency held at a bank is not covered either.

Money market mutual funds are different from money market accounts. A money market account (a type of savings account) is FDIC-insured. A money market mutual fund (an investment product) is not.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays you up to $250,000 per account category. You do not have to do anything — the FDIC contacts you automatically. In most cases, you receive your money within a few business days, either through a transfer to another bank or a check.

The FDIC has a claims process if there is a dispute about how much you had in the account. You may need to provide bank statements or other proof of your balance. This is rare, but it can happen if records are unclear.

How to protect more than $250,000 at one bank

If you have more than $250,000 and want all of it covered at the same bank, you can open accounts in different categories. For example, you could have a $250,000 savings account, a $250,000 checking account, and a $250,000 money market account — all at the same bank, all fully covered.

You can also open a joint account with another person. A joint savings account is insured separately from your individual savings account, so you could have $250,000 in an individual account and $250,000 in a joint account, both fully covered.

If you want to keep all your money at one bank and have more than $500,000 to $750,000, you may run out of coverage categories. At that point, you would need to split your money between two banks to keep everything covered.

The difference between FDIC and NCUA insurance

Credit unions are not FDIC-insured. Instead, they use NCUA insurance, which is run by the National Credit Union Administration. NCUA insurance works the same way as FDIC insurance — it covers up to $250,000 per member, per credit union, per account category.

The main difference is the organization running it. FDIC covers banks; NCUA covers credit unions. Both are government-backed and both protect your money the same way. If you have accounts at both a bank and a credit union, each has its own $250,000 limit.

Frequently Asked Questions

If I have $300,000 in a savings account, how much is covered?

Only $250,000 is covered by FDIC insurance. The remaining $100,000 is not protected. To cover all $300,000, you would need to move $50,000 to a different account category (like a checking account) or to a different bank.

Does FDIC insurance cover money I lose to fraud or theft?

No. FDIC insurance only covers deposits if the bank itself fails. If someone steals your debit card or hacks your account, that is a different issue handled by your bank's fraud protection policies, not by the FDIC.

If I have accounts at two different banks, do I get $250,000 coverage at each one?

Yes. FDIC insurance is per bank, so you get $250,000 of coverage at Bank A and a separate $250,000 at Bank B. The limits do not combine across banks.

Are online banks FDIC-insured?

Most online banks are FDIC-insured, but not all. Check the bank's website or use the FDIC's BankFind tool to confirm. Many online banks are actually branches of larger FDIC-insured banks, so they have the same protection as traditional banks.

What if my bank is not FDIC-insured?

Your deposits are not protected by the FDIC if the bank fails. Before opening an account, confirm that the bank is FDIC-insured. If you already have money at a non-FDIC-insured bank, consider moving it to an FDIC-insured bank.