How FDIC insurance works
The FDIC insures bank deposits up to $250,000 per depositor, per insured bank, per ownership category. If an insured bank fails, the FDIC pays your insured deposits — usually within one business day — and no insured depositor has lost a cent of insured money since 1933. Because the limit applies separately to each ownership category (single, joint, retirement, trust), you can be covered for well over $250,000 at a single bank. FDIC insurance covers deposit products only — not stocks, bonds, mutual funds, annuities or crypto.
Source: FDIC deposit insurance. Data as of June 2026.
What's covered and what isn't
| Covered by FDIC | Not covered by FDIC |
|---|---|
| Checking accounts | Stocks and bonds |
| Savings accounts | Mutual funds and ETFs |
| Money-market deposit accounts | Annuities and life insurance |
| Certificates of deposit (CDs) | Crypto assets |
| Cashier's checks & money orders from the bank | Safe-deposit box contents |
How the limit multiplies across ownership categories
The $250,000 limit is per category, not per account, so the same person can hold more than $250,000 of insured deposits at one bank:
| Ownership category | Coverage per bank |
|---|---|
| Single (individual) accounts | $250,000 total per owner |
| Joint accounts | $250,000 per co-owner |
| Certain retirement accounts (IRAs) | $250,000 per owner |
| Revocable trust / payable-on-death | $250,000 per unique beneficiary |
Want to check your own balance? The FDIC coverage calculator estimates how much of your money is insured across these categories at one bank.
Why bank health metrics still matter
If your deposits are within the limit, FDIC insurance makes them safe regardless of a bank's balance sheet. So why check health metrics at all? Because uninsured balances (above the limit, or in non-deposit products) are not protected, and because a bank's capital, asset quality and earnings affect things like rates, service and the chance of disruption. Health metrics are useful context; FDIC insurance is the guarantee.
Frequently asked questions
How much does FDIC insurance cover?
FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. The limit applies separately to each ownership category, so a depositor can be insured for more than $250,000 at one bank by holding accounts in different categories.
What does FDIC insurance cover, and what does it not?
FDIC insurance covers deposit products: checking, savings, money-market deposit accounts and certificates of deposit (CDs). It does not cover investments such as stocks, bonds, mutual funds, annuities, life-insurance policies, or crypto — even if you bought them through a bank. It also does not cover the contents of safe-deposit boxes.
How fast does the FDIC pay out if a bank fails?
The FDIC aims to make insured deposits available very quickly — typically by the next business day after a bank closes, often through a sale of the failed bank to a healthy one so accounts simply continue. No insured depositor has lost a penny of insured funds since the FDIC was created in 1933.
Are credit unions covered by the FDIC?
No — federally insured credit unions are covered by the National Credit Union Administration (NCUA) through the National Credit Union Share Insurance Fund, with the same $250,000 per-member, per-category limit. The protection is equivalent; it is just a different federal insurer.
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Last updated: 2026-06-20