Is money over $250,000 at a bank insured?

FDIC insurance covers $250,000 per depositor per bank per ownership category. Money above that limit at a single bank in a single ownership category is uninsured and at risk if the bank fails. However, there are multiple legal ways to fully insure deposits well above $250,000 — including using multiple banks, joint accounts, beneficiary designations, and cash management account sweep programs.

How can I insure more than $250,000 at one bank?

You can insure more than $250,000 at the same bank by using different ownership categories, each of which receives its own $250,000 in coverage. For example: a single account ($250,000) plus a joint account with a spouse ($500,000, or $250,000 per co-owner) plus a revocable trust account with two named beneficiaries ($500,000) gives you $1,250,000 insured at the same bank.

What is the CDARS program for large deposits?

The Certificate of Deposit Account Registry Service (CDARS) — now part of the IntraFi Network — allows banks to spread your large CD deposit across multiple FDIC-member banks in the network, with each bank holding under $250,000. You work with one bank but effectively have FDIC coverage at dozens. This allows millions in coverage through a single bank relationship.

How do cash management accounts provide more FDIC coverage?

Cash management accounts (offered by Fidelity, Wealthfront, Betterment, SoFi, etc.) sweep your cash to a network of FDIC-member partner banks. Each bank insures up to $250,000 of your money. With a network of 32 banks, you get $8 million in FDIC coverage. This is the simplest way for individuals to get large FDIC coverage without managing multiple bank relationships.

What accounts are not FDIC insured?

FDIC insurance does not cover investments — stocks, bonds, mutual funds, ETFs, and annuities purchased through a bank are not FDIC insured. Money market mutual funds (different from money market deposit accounts) are not FDIC insured. Treasury securities held directly are backed by the US government but are not FDIC insured (they have their own backing). Safe deposit box contents are not insured by the FDIC.

Should I split my money across multiple banks if I have over $250,000?

Yes, if your total bank deposits at a single institution exceed $250,000 in any single ownership category. Spreading funds across 2–4 FDIC-member banks is straightforward and ensures full coverage. Online banks make this easy — you can open accounts in minutes. Alternatively, a cash management account with a multi-bank sweep network provides equivalent protection without managing multiple bank logins.

How to Insure Bank Deposits Over $250,000 in 2026

How to Insure Bank Deposits Over $250,000

The FDIC insures deposits up to $250,000 per depositor per bank per ownership category. If your total bank balance exceeds $250,000, the excess is uninsured and could be lost if the bank fails.

But there are several legal strategies to fully insure $1 million, $5 million, or more — without taking any investment risk and without giving up FDIC protection.

Strategy 1: Use Different Ownership Categories at the Same Bank

FDIC coverage is per ownership category, not just per account. Using different categories multiplies your coverage at the same bank.

Key ownership categories (each gets its own $250,000 coverage):

Ownership Category	Coverage	Notes
Single/individual accounts	$250,000 per owner	All individual accounts combined
Joint accounts	$250,000 per co-owner	2-owner joint = $500,000 total
Traditional IRA	$250,000 per owner	Combined across all IRA accounts
Roth IRA	$250,000 per owner	Separate from traditional IRA
Revocable trust	$250,000 per named beneficiary	Up to 5 beneficiaries per owner
Irrevocable trust	$250,000 per beneficiary	Subject to specific rules

Example — married couple at the same bank:

Spouse A individual account: $250,000
Spouse B individual account: $250,000
Joint account: $500,000 ($250,000 per owner)
Spouse A revocable trust (3 beneficiaries): $750,000
Spouse A Traditional IRA: $250,000
Spouse A Roth IRA: $250,000
Total insured at one bank: $2,250,000

Strategy 2: Spread Deposits Across Multiple Banks

FDIC coverage is per bank — so depositing at multiple FDIC-member banks multiplies your total coverage.

Example:

Bank A: $250,000 (individual account) ✓ Fully insured
Bank B: $250,000 (individual account) ✓ Fully insured
Bank C: $250,000 (individual account) ✓ Fully insured
Bank D: $250,000 (individual account) ✓ Fully insured
Total: $1,000,000 fully insured

Online banks make this practical. Opening a savings account at Ally, Marcus, Bread Savings, and Synchrony takes about 30 minutes total.

Strategy 3: Use a Cash Management Account with Multi-Bank Sweep

The simplest approach for large cash deposits is a cash management account (CMA) that automatically sweeps your deposits across a large network of FDIC-member banks.

Provider	FDIC Coverage
Wealthfront Cash	$8 million (32 partner banks)
Fidelity Cash Management	$1.25 million+
Betterment Cash Reserve	$2 million+
SoFi Checking & Savings	$2 million+

You keep one account relationship, earn a competitive rate (4.00–5.00% APY), and the provider manages the bank network automatically.

Strategy 4: Use IntraFi (CDARS) for Large CD Deposits

The IntraFi Network (formerly the Certificate of Deposit Account Registry Service) is a service offered by many banks that allows you to place a large CD deposit through one bank while the network automatically distributes your funds across dozens of FDIC-member banks.

You work with your primary bank
Funds are distributed in amounts below $250,000 per IntraFi partner bank
Total FDIC coverage can reach tens of millions of dollars
You receive one consolidated statement

This is popular with businesses, municipalities, and high-net-worth individuals who maintain large cash balances.

Strategy 5: Consider Treasury Securities for Uninsured Excess

For deposits above practical FDIC coverage levels, US Treasury securities (T-bills, T-notes, T-bonds) are an alternative. Treasury securities are backed by the full faith and credit of the US government — widely considered safer than FDIC insurance because it doesn’t depend on the FDIC’s own fund.

Treasury bills currently yield 4.20–4.40% APY and are exempt from state income tax. Buy directly at TreasuryDirect.gov with no commission.

What Is Not Covered by FDIC Insurance

Understanding what the FDIC does NOT cover is critical:

Investment products: Stocks, bonds, mutual funds, ETFs — even if purchased at a bank
Money market mutual funds — these are investments, not bank deposits
Safe deposit box contents
Cryptocurrency
Bank-issued annuities

The FDIC only covers deposit accounts: checking, savings, money market deposit accounts (not mutual funds), and CDs.

How to Check Your FDIC Coverage

The FDIC provides a free tool — EDIE (Electronic Deposit Insurance Estimator) — at fdic.gov/edie. Enter your bank accounts, ownership types, and balances to calculate your exact FDIC coverage.

Is My Money Safe in a Bank? — FDIC insurance basics
What Is a Cash Management Account? — multi-bank sweep coverage explained
Accounts at Multiple Banks — when and how to split
FDIC Insurance Options — full breakdown of coverage categories
Banking Basics Hub — complete banking guide

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy