If your money is in deposit accounts at an FDIC-insured bank and within the coverage limit, it is about as safe as money gets. Here’s how the protection actually works.
The headline rule
The FDIC insures deposits up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC makes your insured deposits available — typically by the next business day. Since 1933, no insured depositor has lost a cent of insured funds.
What’s covered — and what isn’t
| Covered | Not covered |
|---|---|
| Checking & savings | Stocks and bonds |
| Money-market deposit accounts | Mutual funds and ETFs |
| Certificates of deposit (CDs) | Annuities, life insurance |
| Cashier’s checks from the bank | Crypto assets, safe-deposit contents |
The limit multiplies across categories
Because $250,000 is per ownership category, a household can cover far more than $250,000 at a single bank:
| Ownership category | Coverage per bank |
|---|---|
| Single (individual) | $250,000 per owner |
| Joint | $250,000 per co-owner |
| Retirement (IRA) | $250,000 per owner |
| Revocable trust / POD | $250,000 per unique beneficiary |
A married couple using single, joint and IRA categories can insure up to $1.5 million at one bank. Our coverage calculator estimates your own situation, and the how FDIC insurance works page covers the details.
So why check bank health at all?
If you’re within the limit, FDIC insurance makes the bank’s balance sheet largely irrelevant to your deposit safety. Health metrics matter for uninsured balances, for service quality, and for avoiding the inconvenience of a failure. That’s what BankGrade’s metrics are for — useful context, while FDIC insurance is the actual guarantee.
Informational only — not financial advice. Source: FDIC deposit insurance.