The rule
The Federal Deposit Insurance Corporation (FDIC) protects insured deposits if a bank closes. The three parts of the limit each matter. Per depositor: the limit belongs to the person, so a couple has two. Per insured bank: deposits at different banks are insured separately, and deposits at different branches of the same bank are not. Per ownership category: the FDIC adds together everything you hold in the same category at the same bank, checking, savings and CDs alike, and insures the total up to $250,000; a different category gets its own $250,000.
What is covered, and what is not
| Insured at an FDIC-insured bank | Not insured by the FDIC, even if bought at a bank |
|---|---|
| Checking accounts | Stock investments |
| Negotiable order of withdrawal (NOW) accounts | Bond investments |
| Savings accounts | Mutual funds |
| Money market deposit accounts | Annuities |
| Certificates of deposit and other time deposits | Life insurance policies |
| Cashier's checks, money orders and other official items issued by a bank | Safe deposit boxes or their contents |
| US Treasury bills, bonds or notes | |
| Crypto assets |
The dividing line is deposits against investments. A savings account and a CD are deposits and are covered up to the limit. A money market mutual fund is an investment and is not, even though its name resembles the money market deposit account that is. Treasury securities are not FDIC insured either, because they are backed directly by the US government rather than by the deposit insurance fund.
The ownership categories
The FDIC recognises these categories, and each one at a given bank carries its own $250,000 per depositor:
- Single accounts
- Joint accounts
- Certain retirement accounts
- Trust accounts
- Employee benefit plan accounts
- Corporation, partnership and unincorporated association accounts
- Government accounts
Two of them do most of the work for households. In the joint category, the FDIC adds together each co-owner's shares of every joint account at the same insured bank and insures them up to $250,000, so two owners have $500,000 of joint coverage there on top of their single accounts, which are added together separately. Retirement accounts such as deposit IRAs form their own category: all of a person's listed retirement accounts at the same bank are added together and insured up to $250,000, apart from that person's single accounts. Trust accounts have their own rules that depend on the beneficiaries.
Six households, worked out
Each row applies the rule to one bank unless it says otherwise. Coverage is the insured amount under the FDIC's standard limit; anything above it is uninsured if that bank fails.
| Situation | Deposits | Insured | Uninsured |
|---|---|---|---|
| One person, one bank, checking + savings + CD in their own name | $300,000 | $250,000 | $50,000 |
| One person, same deposits split across two different insured banks | $300,000 | $300,000 | $0 |
| Couple, one joint account at one bank | $500,000 | $500,000 | $0 |
| Couple, one joint account ($500,000) plus one single account each ($250,000) at one bank | $1,000,000 | $1,000,000 | $0 |
| One person, $300,000 in a single account and $200,000 in an IRA at the same bank | $500,000 | $450,000 | $50,000 |
| One person, two CDs of $200,000 at the same bank, both in their own name | $400,000 | $250,000 | $150,000 |
The first and last rows are the common mistake: several accounts or CDs in the same category at the same bank do not multiply the coverage. The second, fourth and fifth rows are the fixes: a second bank, a second ownership category, or a joint account. The CD calculator and the compound interest calculator show how a balance grows toward the limit over a term, which is when a plan that started under $250,000 stops being under it.
Credit unions: the NCUA
Credit union deposits are not FDIC insured; they are insured by the National Credit Union Administration (NCUA) through its share insurance fund, which the NCUA says is backed by the full faith and credit of the United States. The shape is the same: up to $250,000 per member-owner for single ownership accounts, and per ownership category, at each federally insured credit union. Share draft accounts, the credit union name for checking, share savings and share certificates are covered dollar for dollar including posted dividends; stocks, bonds, mutual funds and digital assets sold through the credit union are not, and neither are safe deposit boxes.
Keeping savings inside the limit
- Add up by category and bank, not by account. One person with $300,000 across three accounts in their own name at one bank is $50,000 over.
- Use the categories before adding banks. A joint account with a spouse and a deposit IRA each bring their own $250,000 at the same bank.
- Watch growth. An emergency fund or a CD ladder that was built under the limit crosses it as interest accrues; the emergency fund calculator and the savings goal calculator give the target amounts to check against it.
- Check with EDIE. The FDIC's Electronic Deposit Insurance Estimator takes a list of accounts and owners and returns the insured and uninsured amounts, which beats assuming.
- Confirm the bank is insured and that a product is a deposit, not an investment sold under the bank's name.
This guide reports the FDIC's and the NCUA's published rules. Trust accounts, business accounts and accounts held through brokerages or fintech apps have additional conditions, and the insurer's own calculator or a phone call is the right check for a specific case.
Frequently asked questions
How much does the FDIC insure?
The standard amount is $250,000 per depositor, per FDIC-insured bank, for each account ownership category. All deposits you hold in the same ownership category at the same bank are added together and insured up to that figure; a different bank or a different ownership category starts a new $250,000.
Are joint accounts insured for $500,000?
A joint account with two owners is in the joint ownership category, where each co-owner's share is insured up to $250,000 at that bank, so two owners together are covered for $500,000 in joint accounts there. That coverage is separate from each owner's single accounts at the same bank, which have their own $250,000 each.
Are credit unions insured too?
Yes, by the National Credit Union Administration rather than the FDIC, with the same shape: up to $250,000 per member-owner for single ownership accounts and per ownership category at each federally insured credit union, backed by the full faith and credit of the United States. Share draft, share savings and share certificate accounts are covered; stocks, bonds, mutual funds and digital assets sold through a credit union are not.
Is money in a brokerage or investment account FDIC insured?
Not as such. The FDIC lists stocks, bonds, mutual funds, annuities, life insurance, Treasury securities and crypto assets as not covered, even when bought through a bank. A cash sweep from a brokerage into an FDIC-insured bank account can be covered at the receiving bank, under the rules for that bank, which is a question to put to the brokerage in writing.
How do I insure more than $250,000?
Spread it across ownership categories at one bank, for example a single account, a joint account with a spouse and an IRA, each with its own limit, or across more than one insured bank. The FDIC's Electronic Deposit Insurance Estimator, EDIE, calculates the coverage for a specific set of accounts, which is the way to check a plan rather than assume.
Sources
- FDIC: Understanding deposit insurance ($250,000 per depositor, per FDIC-insured bank, for each account ownership category; the list of covered deposit products and of products not covered; the ownership categories; the EDIE calculator)
- FDIC: Financial products that are insured (single accounts added together per person and bank; each co-owner's shares of every joint account added together and insured up to $250,000; retirement accounts added together under their own limit)
- NCUA: Share insurance coverage (up to $250,000 per member-owner for single ownership accounts and per ownership category at each federally insured credit union; backed by the full faith and credit of the United States; covered and not covered products)