Banking
FDIC Insurance Explained: $250,000 Limit & Categories
Quick answer
The FDIC insures deposits at FDIC-insured banks up to $250,000 per depositor, per insured bank, for each account ownership category. Coverage is automatic when you open a deposit account at an insured bank — you do not apply or pay extra. Since FDIC insurance began in 1934, no depositor has lost a penny of insured funds as a result of a bank failure, according to the FDIC.
Key takeaways
- FDIC insurance covers deposits up to $250,000 per depositor, per insured bank, for each account ownership category.
- All deposits in the same ownership category at the same bank are added together; different categories are insured separately.
- Stocks, bonds, mutual funds and crypto assets are not covered, even when bought through an insured bank.
- Credit unions are covered by the NCUA, not the FDIC, at the same $250,000 standard limit — check coverage with BankFind or the FDIC's EDIE estimator.
What is covered
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What this page does not state: No other figure stated. Trust-account rules changed over time; use the FDIC EDIE estimator for your own accounts.
• Checking accounts, NOW accounts, savings accounts, money market deposit accounts (MMDAs)
• Time deposits such as certificates of deposit (CDs)
• Cashier's checks, money orders, and other official items issued by a bank
• Principal and accrued interest through the date of failure, up to the limit
What is NOT covered
• Stocks, bonds, mutual funds, crypto assets
• Life insurance policies, annuities, municipal securities
• Safe deposit boxes or their contents
• U.S. Treasury bills, bonds, or notes *as FDIC deposits* (they are backed by the full faith and credit of the U.S. government, but that is not FDIC insurance)
The key distinction: FDIC insurance covers deposits at a failed bank. It does not cover investment losses, fraud on a non-bank platform, or the failure of a non-bank company — even if you bought the product at a bank.
How the $250,000 limit actually works: ownership categories
All deposits you hold in the same ownership category at the same bank are added together and insured up to $250,000. Different categories are insured separately. Categories include: single accounts, certain retirement accounts (e.g. IRAs), joint accounts, trust accounts, employee benefit plan accounts, corporation/partnership/unincorporated association accounts, and government accounts.
Worked examples (from FDIC guidance)
Branches of the same bank do not create separate coverage — funds at different branches of the same insured bank are combined.
Credit unions: NCUA, not FDIC
Credit unions are insured by the NCUA's National Credit Union Share Insurance Fund, not the FDIC. The standard limit is the same: $250,000 per member, per federally insured credit union, per ownership category, with joint interests up to $250,000 per owner and IRAs/KEOGHs separately up to $250,000. The fund is backed by the full faith and credit of the United States, and — like the FDIC — the NCUA states members have never lost insured savings at a federally insured credit union.
How to check your coverage
1. Confirm the bank is FDIC-insured (FDIC BankFind) or the credit union is NCUA-insured.
2. List every account by bank and ownership category, and add within each category.
3. Use the FDIC's Electronic Deposit Insurance Estimator (EDIE) — or the NCUA estimator for credit unions — for your exact accounts, especially trusts, which have specific rules.
4. If you are over a limit in one category at one bank, spreading across banks or categories (done properly, with correct titling) is the standard remedy — not assuming a fintech brand or app is itself insured. For fintech/brokerage cash products, ask which insured bank holds the funds and in what form.
At a glance
| Situation | Coverage |
|---|---|
| Single checking + single savings at Bank A, totalling $300,000 | $250,000 insured; $50,000 uninsured (same category, same bank) |
| Single account at Bank A ($250,000) + single account at Bank B ($250,000) | $250,000 at each bank — separately insured |
| Single account ($250,000) + joint account interest ($250,000) at the same bank | Both insured separately (different categories) |
| Two-owner joint account | Up to $250,000 per co-owner's interest (so up to $500,000 total for two owners) |
| IRA at the same bank | Separately insured up to $250,000 (different category from single accounts) |
How the $250,000 limit actually works: ownership categories
What this means for you
FDIC insurance is automatic at an insured bank, but its limit is per category, per bank — not per account. If your balances are large, spread them across categories or banks, and verify your own coverage with the FDIC's EDIE estimator rather than assuming it.
FAQ
Is my money insured the moment I open an account?
Yes, at an insured institution, coverage is automatic. Confirm the institution's status; a brand name alone is not proof.
Does FDIC insurance protect against a bank's bad investments?
It protects depositors if the bank fails. It does not insure investment products you bought through the bank, even if they lose value.
What happens if my bank fails?
The FDIC typically arranges for insured deposits to be available promptly, either through a successor bank or direct payment. Uninsured amounts may be partly recoverable through the failure resolution, but that is not guaranteed.
Sources
- FDIC, Your Insured Deposits — https://www.fdic.gov/resources/deposit-insurance/brochures/documents/your-insured-deposits-english.html (verified 2026-10-28): standard limit $250,000 per depositor, per insured bank, for each account ownership category.
- NCUA, Share Insurance Fund Overview — https://ncua.gov/support-services/share-insurance-fund (verified 2026-10-28): individual accounts up to $250,000; joint interest up to $250,000 per owner; IRA/KEOGH separately up to $250,000.
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