Federal deposit insurance means you don’t lose insured deposits if a bank fails. The coverage rules are worth knowing if you hold large balances.
In a nutshell
- The FDIC insures deposits up to $250,000 per depositor, per insured bank, for each ownership category.
- Checking, savings, money market deposit accounts and CDs are covered.
- Investments such as stocks, bonds, mutual funds, annuities and crypto aren’t covered by FDIC insurance.
- Credit union deposits are insured separately by the NCUA, with the same $250,000 standard limit.
The Federal Deposit Insurance Corporation (FDIC) protects deposits at member banks. If an insured bank fails, your insured deposits are returned, up to the coverage limits.
The standard limit
Coverage is $250,000 per depositor, per insured bank, per ownership category. Each part of that sentence matters:
- Per depositor: coverage is for you, not for each account.
- Per bank: accounts at different insured banks are insured separately.
- Per ownership category: different ways of owning accounts are insured separately.
Common ownership categories
| Category | Example | How coverage works |
|---|---|---|
| Single accounts | An account in your name only | Up to $250,000 for all your single accounts at one bank |
| Joint accounts | An account owned with a partner | Up to $250,000 per co-owner |
| Certain retirement accounts | An IRA held in deposits | Up to $250,000 per owner |
| Trust accounts | Accounts with named beneficiaries | Depends on the beneficiaries |
So one person could have more than $250,000 insured at one bank by using different ownership categories.
What’s covered and what isn’t
Covered: checking and savings accounts, money market deposit accounts and certificates of deposit.
Not covered: stocks, bonds, mutual funds, annuities, crypto assets, life insurance and the contents of safe deposit boxes, even if bought through a bank.
Do this
Use the FDIC’s BankFind tool to confirm a bank is insured, and its online estimator to check your coverage if your balances are close to the limit.
Credit unions
Credit unions are insured by the National Credit Union Administration (NCUA) through its share insurance fund. The standard limit is also $250,000 per member, per insured credit union, per ownership category.
Be wary
Some fintech apps aren’t banks. Your money may be insured only once it reaches a partner bank, and only if specific conditions are met. Read how the app holds your funds before keeping large balances there.
Planning around the limit
Most people’s deposits fall well within the limit. If yours don’t, spread money across ownership categories or across banks, and keep records of who owns each account. Our guide to joint bank accounts explains how joint ownership affects coverage, and checking vs. savings covers which accounts to hold.
Good questions
Do I need to apply for FDIC insurance?
No. Coverage is automatic for deposits at FDIC-insured banks.
Are deposits in a banking app insured?
Only if the money is held at an FDIC-insured bank and certain conditions are met. Check which bank holds your funds and how the app describes its coverage.
How quickly is money returned if a bank fails?
Historically, the FDIC has usually made insured deposits available within a few business days, often by moving accounts to another bank.
This guide is general information, not financial or legal advice. Bank fees, account terms and screening policies vary by bank and change over time, so check the account’s fee schedule and terms before you open it. For federal rules, see the Consumer Financial Protection Bureau and the FDIC.