How much does FDIC insurance cover?

FDIC insures up to $250,000 per depositor, per FDIC-insured bank, per ownership category. This means a single person can have $250,000 covered at each separate bank. A married couple can have $1 million or more covered at a single bank through different ownership categories (individual, joint, retirement accounts).

What happens to my money if my bank fails?

If your FDIC-insured bank fails, the FDIC typically pays insured depositors within 2 business days, either by providing a check or transferring your accounts to another insured bank. You do not need to file a claim for insured deposits. Historically, no one has ever lost a single penny of FDIC-insured deposits.

FDIC Insurance: How It Works, Limits & How to Protect Your Money (2026)

FDIC insurance is the backbone of banking safety in America. Here’s exactly how it works and how to maximize your coverage.

FDIC Insurance Coverage Basics

Item	Details
Standard coverage limit	$250,000 per depositor, per bank, per ownership category
Cost to you	$0 (banks pay insurance premiums)
Coverage since 1933	Zero losses on insured deposits — ever
Government backing	Full faith and credit of the US government
Deposit Insurance Fund	$128.2 billion (as of 2024)
Number of insured banks	~4,600
Processing time (bank failure)	Typically 1-2 business days

What Is and Isn’t Covered

Covered by FDIC

Account Type	Covered?
Checking accounts	✅ Yes
Savings accounts	✅ Yes
Money market deposit accounts	✅ Yes
Certificates of deposit (CDs)	✅ Yes
Negotiable order of withdrawal (NOW) accounts	✅ Yes
Cashier’s checks issued by the bank	✅ Yes
Money orders issued by the bank	✅ Yes
Prepaid cards (if bank-issued)	✅ Yes

NOT Covered by FDIC

Product	Covered?	Who Regulates
Stocks/bonds	❌ No	SEC/FINRA
Mutual funds/ETFs	❌ No	SEC
Money market funds (investment)	❌ No	SEC
Annuities	❌ No	State insurance dept
Life insurance	❌ No	State insurance dept
Crypto/digital assets	❌ No	Varies
Contents of safe deposit boxes	❌ No	Not insured
Treasury bills/bonds	❌ No (backed by US govt directly)	—
Brokerage accounts	❌ No FDIC (SIPC covers up to $500K)	SIPC

Coverage by Ownership Category

This is how married couples can have $1M+ covered at one bank:

Ownership Category	Coverage Per Bank	Example
Single (individual)	$250,000	John’s savings account
Joint account	$250,000 per co-owner	John & Jane’s joint checking = $500,000
Revocable trust	$250,000 per beneficiary (up to 5)	Trust with 3 beneficiaries = $750,000
IRA (Traditional/Roth)	$250,000 total for all IRAs at that bank	John’s IRA CD
Corporation/LLC	$250,000	Business account
Government accounts	$250,000	Municipal deposits
Employee benefit plan	$250,000 per participant	Company 401(k) cash deposits

Married Couple Maximum at One Bank

Account	Owner(s)	Coverage
John’s individual savings	John	$250,000
Jane’s individual savings	Jane	$250,000
Joint checking	John & Jane	$500,000 ($250K each)
John’s IRA CD	John	$250,000
Jane’s IRA CD	Jane	$250,000
Revocable trust (2 beneficiaries)	Trust	$500,000
Total FDIC coverage	—	$2,000,000

How to Protect More Than $250,000

Strategy	How It Works	Amount Protected
Multiple banks	Open accounts at different FDIC-insured banks	$250,000 per bank
Joint accounts	Each co-owner gets $250K coverage	$500,000 per joint account
POD/trust beneficiaries	Each named beneficiary adds $250K	$250K × beneficiaries (up to $1.25M)
Different ownership categories	Individual + joint + IRA + trust	Up to $1M+ at one bank
CDARS/ICS network	Bank spreads deposits across multiple banks	Multi-million coverage
Treasury bills	Backed by US government (no FDIC needed)	Unlimited
Brokerage sweep programs	Cash swept across multiple partner banks	$1M-$5M+

FDIC vs NCUA vs SIPC

Insurance	FDIC	NCUA	SIPC
Covers	Bank deposits	Credit union deposits	Brokerage accounts
Limit	$250,000	$250,000	$500,000 (including $250K cash)
What it protects	Deposit accounts (checking, savings, CDs)	Same as FDIC but at credit unions	Securities + cash in brokerage
What it doesn’t protect	Investments, market losses	Same	Market losses, fraud losses
Government backing	Full faith & credit of US govt	Full faith & credit of US govt	Non-profit corporation (not govt)

What Happens When a Bank Fails

Step	What Happens	Timeline
1	FDIC or state regulators close the bank	Usually Friday evening
2	FDIC appointed as receiver	Same day
3	Insured deposits transferred to acquiring bank, or checks mailed	1-2 business days
4	ATMs/online banking at acquiring bank	Usually by Monday
5	Uninsured amounts: partial recovery from asset liquidation	Weeks to months
6	Final distribution of remaining assets	Months to years

Recent Bank Failures

Bank	Year	Total Deposits	Insured Deposits	Result
Silicon Valley Bank	2023	$175 billion	All covered (emergency)	FDIC made all depositors whole
Signature Bank	2023	$88 billion	All covered (emergency)	FDIC made all depositors whole
First Republic Bank	2023	$104 billion	Acquired by JPMorgan	Seamless transfer
Heartland Tri-State Bank	2023	$139 million	Standard FDIC coverage	Acquired by Dream First Bank

Common FDIC Misconceptions

Myth	Reality
“Each account is separately insured”	Coverage is per depositor, per bank, per ownership category — not per account
“My online bank isn’t FDIC insured”	Most legitimate online banks are FDIC insured — verify at FDIC.gov
“CDs are riskier than savings”	Both have identical FDIC coverage
“I need to file a claim if my bank fails”	For insured amounts, FDIC handles it automatically
“FDIC covers investment losses”	FDIC only covers deposit accounts, never investment losses
“My bank is too big to fail”	Even big banks can fail; FDIC coverage protects you regardless
“Fintech apps are FDIC insured”	The fintech itself isn’t; the partner bank may be — read the fine print

How to Verify FDIC Insurance

Method	How
FDIC BankFind	bankfind.fdic.gov — search by bank name
Look for FDIC sign	Physical branches display the FDIC logo
Check bank website	Should prominently state “Member FDIC”
Certificate number	Every insured bank has an FDIC certificate number
EDIE calculator	Use FDIC’s Electronic Deposit Insurance Estimator to calculate your specific coverage