FDIC insurance protects the money you keep in deposit accounts at an insured bank if that bank fails. The standard coverage is $250,000 per depositor, per insured bank, for each account ownership category, and it applies automatically when you open a deposit account at an FDIC-insured bank.
That one sentence hides a lot of detail. This guide explains what FDIC insurance covers and what it does not, how ownership categories can raise your total coverage, how to check whether a bank is insured, and how credit union accounts are protected by the National Credit Union Administration (NCUA) instead.
Key takeaways
- The standard FDIC insurance amount is $250,000 per depositor, per insured bank, for each ownership category.
- Checking, savings, money market deposit accounts and CDs are covered. Stocks, bonds, mutual funds, annuities, crypto assets and safe deposit box contents are not.
- Different ownership categories, such as single, joint, certain retirement and trust accounts, are insured separately at the same bank.
- Use FDIC BankFind to confirm a bank is insured and the EDIE estimator to calculate your coverage.
- Credit union deposits are protected separately by the NCUA, also up to $250,000 under its own rules.
What is FDIC insurance?
The Federal Deposit Insurance Corporation (FDIC) protects deposits at FDIC-insured banks. According to the FDIC’s Understanding Deposit Insurance page, the agency says no depositor has lost a penny of FDIC-insured funds since it was founded in 1933.
You do not need to apply or pay for coverage. The FDIC’s Deposit Insurance at a Glance brochure says coverage is automatic when you open a deposit account at an FDIC-insured bank. If you have accounts at several different insured banks, each bank’s deposits are insured separately up to the limit.
What FDIC insurance covers
FDIC insurance covers deposit products. The FDIC lists these as covered:
- Checking accounts
- Negotiable order of withdrawal (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
Coverage is dollar-for-dollar up to the insurance limit and includes principal plus any interest accrued through the date the bank fails.
What FDIC insurance does not cover
Many banks also sell or offer access to investment products. Even when you buy them at a bank, the FDIC does not insure:
- Stock investments
- Bond investments
- Mutual funds
- Annuities
- Life insurance policies
- Municipal securities
- Crypto assets
- Safe deposit boxes or their contents
- U.S. Treasury bills, bonds or notes
The FDIC notes that Treasury securities are not FDIC-insured but are backed by the full faith and credit of the U.S. government. I bonds, which are U.S. Treasury savings bonds rather than bank deposits, are covered in our guide to I bonds. The FDIC also says deposit insurance does not cover losses from theft or fraud, which are handled under other laws. If someone contacts you claiming to be from the FDIC and asks for money or personal details, read our reader safety page before you respond.
How FDIC insurance coverage works by ownership category
The $250,000 limit applies separately to each ownership category at each bank. The FDIC adds together all of your deposits in the same category at the same bank, whatever the account type, and insures that total up to the limit. Its brochure Your Insured Deposits explains the rules in detail.
| Ownership category | Standard coverage |
|---|---|
| Single accounts (one owner, no beneficiaries) | $250,000 per owner |
| Joint accounts (two or more owners, no beneficiaries) | $250,000 per co-owner |
| Certain retirement accounts, including IRAs | $250,000 per owner |
| Trust accounts with beneficiaries | $250,000 per beneficiary, up to $1,250,000 per owner |
| Corporation, partnership and unincorporated association accounts | $250,000 per entity |
| Employee benefit plan accounts | $250,000 for each participant’s non-contingent interest |
| Government accounts | $250,000 per official custodian |
Joint accounts
For a joint account to qualify, all co-owners must be living people, must have equal rights to withdraw, and must have signed the signature card (which can be done electronically) unless the bank’s records otherwise establish co-ownership. Each co-owner’s shares of all joint accounts at the same bank are added together and insured up to $250,000.
Retirement accounts
The certain retirement accounts category covers traditional, Roth, SEP and SIMPLE IRAs, self-directed defined contribution plans such as a self-directed 401(k), and Section 457 deferred compensation plans. FDIC insurance covers deposits, not investments, even if the investments were bought at an insured bank, so stocks, bonds or mutual funds held in an IRA are not FDIC-insured.
Trust accounts
Since April 1, 2024, the FDIC insures trust deposits at $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner for all trust accounts at one bank. That cap is reached with five or more beneficiaries. This category includes payable-on-death (POD) accounts, in which the owner tells the bank to pay named beneficiaries after the owner’s death. The beneficiaries must be named in the bank’s records.
A hypothetical example
Suppose, purely for illustration, that one person has $300,000 in a single-owner savings account at one bank. $250,000 would be insured and $50,000 would be over the limit. If the same person also shares a $500,000 joint account with a spouse at that bank, each co-owner’s $250,000 share falls in the separate joint category and would be covered. Use the FDIC’s estimator to check your real accounts, because the details matter.
How to check a bank and estimate your coverage
- Confirm the bank is insured. Search for it on FDIC BankFind.
- Look for the official FDIC sign. It should be displayed where deposits are received. The FDIC says that beginning January 1, 2025, you should also look for its official digital sign on bank websites, bank apps and certain ATMs.
- Calculate your coverage. Enter your accounts in the Electronic Deposit Insurance Estimator (EDIE), which shows how much of your money is insured at each bank.
- Ask the FDIC directly. Call 1-877-ASK-FDIC (1-877-275-3342) or use the FDIC Information and Support Center if you have questions.
Using apps and nonbank companies
Some apps and financial companies offer accounts through partnerships with FDIC-insured banks. The FDIC explains that coverage can “pass through” to you only if certain requirements are met, including that the relationship is disclosed in the bank’s account records. FDIC insurance protects you if the insured bank fails; check which bank actually holds your money and read the company’s disclosures.
When banks merge
If you have accounts at two banks that merge, the FDIC says deposits from the acquired bank stay separately insured for at least six months after the merger. Some CDs keep separate coverage longer, depending on when they mature and how they are renewed.
What happens if a bank fails
The FDIC says it acts quickly to protect insured deposits. In many cases it arranges a sale of the failed bank to a healthy bank, and insured depositors immediately become depositors of the acquiring bank. If no buyer is found, the FDIC pays depositors directly up to the insured limit, and those payments usually begin within a few days after the bank closes. Deposits above the insurance limit are not covered by FDIC insurance.
For many households, spreading savings so that every dollar sits within insured limits is part of a sound safety net. Our guide on how to build an emergency fund covers where to keep that cash.
Credit unions: NCUA share insurance
Credit unions are not covered by the FDIC. Federally insured credit unions are protected by the National Credit Union Share Insurance Fund, run by the NCUA and backed by the full faith and credit of the United States. According to the NCUA’s Share Insurance Coverage page:
- Individual accounts are insured up to $250,000 at each federally insured credit union.
- Joint accounts are insured up to $250,000 for each owner, and IRA and Keogh retirement accounts are insured separately up to $250,000.
- Share draft (checking), share savings and share certificates are covered, including dividends posted through the date the credit union closes.
- Stocks, bonds, mutual funds, life insurance, annuities, municipal securities, safe deposit boxes and digital assets such as cryptocurrencies are not covered.
The NCUA warns that some state-chartered credit unions are insured by private insurers, which are not backed by the U.S. government. Confirm federal insurance with the NCUA Credit Union Locator, and use the NCUA Share Insurance Estimator to calculate coverage. The NCUA’s consumer line is 1-800-755-1030, option 1.
Note: This article is general information, not financial or legal advice. Rules can change, so confirm details with the FDIC, the NCUA or a qualified professional. See our Disclaimer.
Frequently asked questions
Is FDIC insurance $250,000 per account?
Not exactly. The limit is $250,000 per depositor, per insured bank, for each ownership category. Several accounts in the same category at the same bank, such as a single-owner checking account and a single-owner CD, are added together and insured up to $250,000 in total.
Are CDs FDIC-insured?
Yes. Certificates of deposit at an FDIC-insured bank are deposit products and are covered up to the limit, including interest accrued through the date of a bank failure. CDs count toward the same ownership category totals as your other deposits at that bank.
Is crypto held through a bank FDIC-insured?
No. The FDIC lists crypto assets among the products it does not insure, along with stocks, bonds, mutual funds and annuities. The NCUA likewise does not insure digital assets at credit unions.
Do I need to sign up for FDIC insurance?
No. Coverage is automatic when you open a deposit account at an FDIC-insured bank. You can confirm a bank’s status on BankFind before you deposit money.
Are credit union accounts as safe as bank accounts?
Accounts at federally insured credit unions are protected by the NCUA’s Share Insurance Fund, which is backed by the full faith and credit of the United States, generally up to $250,000. Some state-chartered credit unions use private insurance that is not government-backed, so check the NCUA Credit Union Locator.
Official sources
- Understanding Deposit Insurance – Federal Deposit Insurance Corporation
- Deposit Insurance at a Glance – Federal Deposit Insurance Corporation
- Your Insured Deposits – Federal Deposit Insurance Corporation
- Deposit Insurance – Federal Deposit Insurance Corporation
- Share Insurance Coverage – National Credit Union Administration
Last checked: November 6, 2026. We review this guide when the official rules change.