FDIC insurance is the reason a bank failure doesn't mean losing your money. It's a federal program that automatically protects deposits at member banks, and understanding exactly how the coverage works helps you make sure you're never over the limit without realizing it.
What FDIC insurance covers
- Checking accounts
- Savings accounts
- Money market deposit accounts
- Certificates of deposit (CDs)
What FDIC insurance does not cover
- Stocks, bonds, and mutual funds, even if purchased through a bank
- Cryptocurrency
- Life insurance policies
- Losses from fraud that occur outside the bank's own failure (though other protections may apply to those situations)
How the $250,000 limit actually works
It's per depositor, per bank, per ownership category
Examples of how coverage stacks
| Situation | Coverage |
|---|---|
| $200,000 in an individual checking account at Bank A | Fully covered |
| $300,000 in an individual savings account at Bank A | $250,000 covered; $50,000 uninsured |
| $200,000 individual + $200,000 joint account, same bank | Both fully covered — different ownership categories |
| $200,000 at Bank A + $200,000 at Bank B | Both fully covered — different banks |
Is a credit union's insurance the same thing?
Credit unions use a parallel program called NCUA insurance (National Credit Union Administration), which provides the same $250,000 per depositor, per institution protection as FDIC insurance for banks. Always confirm a credit union is NCUA-insured before depositing.
How to confirm a bank is FDIC-insured
Look for the FDIC logo on the bank's website or in a branch, or search the bank directly using the FDIC's BankFind tool. Online banks are just as eligible for FDIC insurance as traditional ones — the coverage isn't related to whether the bank has physical branches.
