Money you keep in a U.S. bank is insured up to $250,000 per depositor, per insured bank, for each ownership category. That is the standard federal deposit insurance limit, and it applies the same way at FDIC-insured banks and NCUA-insured credit unions. The category rule is what most people miss: a single household can protect well over $1 million at one bank by holding money in different ownership categories, without ever opening an account somewhere else.
The $250,000 figure has not changed since the Dodd-Frank Act made it permanent in 2010. It is defined in federal statute as the “standard maximum deposit insurance amount” for banks1Office of the Law Revision Counsel. 12 USC 1821 – Insurance Funds and as the “standard maximum share insurance amount” for credit unions.2Office of the Law Revision Counsel. 12 USC 1787 – Payment of Insurance
How the Limit Is Calculated
Coverage is automatic. You don’t apply for it, pay a premium, or sign anything. Banks and credit unions fund the insurance through assessments they pay into the Deposit Insurance Fund or the National Credit Union Share Insurance Fund, and no taxpayer money backs either one.3FDIC.gov. What We Do
The $250,000 cap applies to your combined balance across all accounts in the same ownership category at the same institution. A $150,000 checking account and a $120,000 savings account at the same bank, both in your name alone, add up to $270,000. That leaves $20,000 uninsured. The calculation also includes accrued interest through the date of failure, so a CD earning interest can push you over the limit even if the original deposit was under $250,000.4FDIC.gov. Deposit Insurance FAQs
Different branches of the same bank do not give you separate coverage. A $200,000 CD at one branch and a $100,000 savings account at another branch of the same institution count together as $300,000 in the same category.5FDIC.gov. Your Insured Deposits
Ownership Categories That Multiply Your Coverage
The limit resets for each ownership category you use at the same bank. This is the main lever for protecting large balances at one institution.
Single Accounts
A single account is any deposit owned by one person with no beneficiaries. The FDIC combines all your single accounts at the same bank and insures the total up to $250,000. Accounts held under a sole proprietorship’s DBA name count as your single accounts too, not as a separate business category.6FDIC.gov. Single Accounts A personal savings account at $200,000 plus a DBA checking account at $80,000 leaves $30,000 uninsured.
Joint Accounts
Joint accounts are owned by two or more people with equal withdrawal rights. Each co-owner’s share is insured up to $250,000, so a two-person joint account is covered up to $500,000. The FDIC assumes equal ownership unless the account records say otherwise.5FDIC.gov. Your Insured Deposits
Retirement Accounts
IRAs held at a bank in deposit products get their own category, separate from single or joint accounts. Traditional, Roth, SEP, and SIMPLE IRAs all qualify. The FDIC adds these together and insures the total up to $250,000 per person at the same bank.5FDIC.gov. Your Insured Deposits One person can have $250,000 in single accounts and another $250,000 in IRA accounts at the same institution.
Trust Accounts
Trust rules changed on April 1, 2024. The FDIC merged its previously separate categories for payable-on-death accounts, formal revocable trusts, and irrevocable trusts into one “trust accounts” category. Coverage is now calculated at $250,000 per unique beneficiary, up to a maximum of $1,250,000 per owner at the same bank.7FDIC: Electronic Deposit Insurance Estimator (EDIE): SOC. Changes in FDIC Deposit Insurance Coverage That works out to $250,000 for one beneficiary, $500,000 for two, and so on, capping at $1,250,000 for five or more.
Under the old rules, trusts with more than five beneficiaries could get unlimited per-beneficiary coverage. If you previously relied on a large trust for more than $1,250,000 in coverage at a single bank, your protection may have dropped and it is worth rechecking.
Business Accounts
Corporations, partnerships, and unincorporated associations each get $250,000, separate from the personal accounts of their owners. The entity must be engaged in an “independent activity,” meaning it exists for a legitimate purpose and not just to increase insurance. Separately incorporated subsidiaries each get their own $250,000, but divisions of the same corporation do not, and multiple accounts held by one entity at one bank are combined into a single $250,000 limit.8FDIC.gov. Corporation, Partnership and Unincorporated Association Accounts
Employee Benefit Plans
Pension plans, defined benefit plans, and other non-self-directed employee benefit plans get “pass-through” coverage. Instead of insuring the plan for a single $250,000, the FDIC insures each participant’s interest up to $250,000.5FDIC.gov. Your Insured Deposits
Stacking It All
A married couple can combine these categories aggressively at one bank. Each spouse gets $250,000 in single account coverage, the joint account covers $500,000, each spouse’s IRA adds $250,000, and trust accounts add more depending on beneficiaries. Without opening an account anywhere else, that couple can protect well over $1.5 million.
What Deposit Insurance Covers
Federal deposit insurance only protects products where the bank guarantees your principal. The covered list is short: checking accounts, savings accounts, money market deposit accounts, and certificates of deposit.
Everything else a bank sells falls outside deposit insurance. Stocks, bonds, mutual funds, life insurance policies, annuities, and municipal securities carry market risk and are never insured, even if you bought them at a teller window. Treasury securities are backed directly by the federal government through the Bureau of the Fiscal Service, not through deposit insurance.9Federal Deposit Insurance Corporation (FDIC). Deposit Insurance
Cryptocurrency is not insured. The FDIC has stated that crypto assets are not deposits and carry no coverage regardless of where you bought them or who holds them.10FDIC.gov. Advisory to FDIC-Insured Institutions Regarding FDIC Deposit Insurance and Crypto Assets If a fintech company or exchange advertises FDIC insurance on a crypto product, the claim is almost certainly about the cash balance in the account, not the crypto itself.
What Happens to Balances Above the Limit
When an insured bank fails, the FDIC pays insured deposits as soon as possible, with a goal of two business days. Most depositors either receive a check or have their accounts automatically transferred to a bank that acquires the failed institution’s deposits.11FDIC.gov. Payment to Depositors Accounts tied to formal trust agreements or placed through brokers can take longer because additional documentation is needed.
Money above the $250,000 limit is treated differently. Those uninsured amounts become unsecured claims against the failed bank’s remaining assets. The FDIC may pay an advance dividend based on estimated recovery, but the remainder depends on what the bank’s assets bring in liquidation. Full recovery is not guaranteed and can take months or years.12eCFR. 12 CFR Part 360 – Resolution and Receivership Rules A single account holding $400,000 gets $250,000 back quickly; the other $150,000 goes into a process with no guaranteed outcome.
Protecting More Than $250,000
Stacking ownership categories is the most common fix. A single person can combine a single account, an IRA, and a payable-on-death account with one beneficiary for $750,000 in coverage at one bank. Adding a joint account with a spouse pushes coverage higher.
For balances in the millions, reciprocal deposit networks offer another route. Services like IntraFi’s ICS and CDARS split a large deposit into pieces below $250,000 and place each piece at a different FDIC-insured bank in the network. Your bank handles the paperwork and you receive one statement.13IntraFi. ICS and CDARS These arrangements qualify for pass-through insurance so long as the deposits at each receiving bank are properly titled and records identify the actual owner.14FDIC.gov. Pass-through Deposit Insurance Coverage Not every bank participates, so ask.
Fintech Apps and Bank Mergers
Online-only banks that hold their own FDIC charter work exactly like brick-and-mortar banks for insurance purposes. What matters is whether the institution itself is FDIC-insured.15FDIC.gov. Banking With Apps
Fintech apps and neobanks are a different situation. Payment apps and budgeting platforms are not banks and carry no FDIC insurance themselves. Some partner with insured banks to hold customer funds, which can provide pass-through coverage, but only if the money actually reaches an insured bank and the records identify you as the owner. Funds sitting in a fintech’s own accounts before being placed at a bank are not insured.15FDIC.gov. Banking With Apps If the fintech fails before depositing your money, FDIC insurance does not help. Verify which specific insured bank holds your funds.
Bank mergers create a temporary quirk. When one bank acquires another, depositors who held accounts at both banks suddenly have combined balances at one institution. Federal rules give you a six-month grace period to restructure. During those six months, deposits from the old bank stay insured separately from your existing accounts at the acquiring bank. CDs that mature during the grace period and are renewed for the same amount and term stay separately insured until their next maturity date after the six months expire.16FDIC. Financial Institution Employee’s Guide to Deposit Insurance – Merger of IDIs If you get a merger notice, check your combined totals and move money before the grace period ends.
How to Verify Your Bank and Estimate Your Coverage
Insured banks display a “Member FDIC” sign at branches and on websites. Credit unions display “NCUA Insured” or “Your savings federally insured to at least $250,000.” Signage can be faked, so independent verification is worth thirty seconds.
The FDIC’s BankFind tool lets you look up any institution by name to confirm current insurance status.17Federal Deposit Insurance Corporation (FDIC). BankFind Suite – Find Insured Banks The NCUA’s Credit Union Locator does the same for credit unions.18National Credit Union Administration. National Credit Union Administration – Credit Union Locator
For a precise coverage total across multiple categories, the FDIC’s Electronic Deposit Insurance Estimator (EDIE) will do the math for you.19Federal Deposit Insurance Corporation (FDIC). FDIC Electronic Deposit Insurance Estimator (EDIE) Calculator The NCUA offers a Share Insurance Estimator for credit union accounts.20MyCreditUnion.gov. Share Insurance Estimator Running your balances through one of these tools once a year is the easiest way to catch coverage that has drifted above the line.