FDIC insurance limit explained: $250,000 and how to get more
Quick answer: the FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category. Checking, savings, money market deposit accounts and CDs at the same bank, in the same category, are added together toward that limit. Because the limit applies per ownership category, a household can have far more than $250,000 insured at one bank.
What the FDIC covers
| Covered | Not covered |
|---|---|
| Checking accounts | Stocks, bonds and mutual funds |
| Savings accounts | Money market mutual funds |
| Money market deposit accounts | Annuities and life insurance |
| Certificates of deposit (CDs) | Crypto assets |
| Cashier’s checks and money orders issued by the bank | Contents of safe deposit boxes |
Investments bought through a bank’s brokerage arm are not FDIC-insured, even if you bought them at a branch. Brokerage accounts may be covered by SIPC, which protects against a broker failing, not against market losses.
Credit unions have equivalent coverage, also $250,000, through the NCUA. See credit union vs bank.
How ownership categories raise your coverage
| Ownership category | Coverage |
|---|---|
| Single accounts (one owner) | $250,000 per owner |
| Joint accounts (two or more owners) | $250,000 per co-owner |
| Certain retirement accounts (such as IRAs) | $250,000 per owner |
| Trust accounts (revocable and irrevocable) | $250,000 per owner per beneficiary, up to 5 beneficiaries ($1.25 million per owner) |
| Business accounts (corporation, LLC) | $250,000 per business |
Example: a married couple at one bank
| Account | Insured amount |
|---|---|
| Partner A, single account | $250,000 |
| Partner B, single account | $250,000 |
| Joint account | $500,000 ($250,000 each) |
| Partner A, IRA deposits | $250,000 |
| Partner B, IRA deposits | $250,000 |
| Total | $1,500,000 |
This is a simplified example. Use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) on fdic.gov to check your own accounts.
Other ways to insure more than $250,000
- Use more than one bank. The limit is per bank, so deposits at different insured banks are insured separately. Branches of the same bank count as one bank.
- Reciprocal deposit networks. Some banks spread large deposits across many banks for you.
- Cash sweep programs at some brokerages move cash into several banks.
- Treasury bills are backed by the US government directly rather than by the FDIC.
What happens if a bank fails?
The FDIC usually pays insured deposits within a few business days, either by moving accounts to another bank or by paying depositors directly. Since the FDIC started in 1934, no depositor has lost a penny of insured funds.
How to check if your bank is insured
Look for the FDIC sign at branches and websites, or use the FDIC’s BankFind tool. Our US banks directory lists FDIC-insured institutions with their branches by state.
Frequently asked questions
Is the FDIC limit per account? No. It is per depositor, per bank, per ownership category.
Are CDs FDIC insured? Yes, CDs at insured banks are covered. See CD vs savings account.
Does the $250,000 include interest? Yes. Principal plus interest earned up to the date of failure counts toward the limit.
This article is general information, not financial or legal advice.