What is FDIC Insurance

FDIC insurance is the U.S. federal deposit insurance program that protects your money at insured banks if the bank fails. Every U.S. bank that displays the “Member FDIC” logo or seal is insured by the Federal Deposit Insurance Corporation (FDIC), an independent U.S. government agency created in 1933 by the Banking Act of 1933 (Glass-Steagall) in response to the wave of bank failures that wiped out depositor savings during the Great Depression. Since 1933, no depositor has ever lost a penny of FDIC-insured funds at a failed insured bank.

The current FDIC coverage limit is $250,000 per depositor, per insured bank, per account ownership category. This sentence is the most important and most-misunderstood sentence in U.S. consumer banking. The $250,000 limit is not “per account” or “per customer” – it’s the three-variable formula above, which means a married couple at a single insured bank can have substantially more than $250,000 in fully-insured coverage through proper account structuring (joint accounts, individual accounts, retirement accounts, and payable-on-death accounts each count as separate ownership categories with their own $250,000 limits).

This page covers what FDIC insurance is and how it works, the 8 FDIC ownership categories, what types of deposits are covered, what is NOT covered (stocks, bonds, mutual funds, crypto, safe deposit box contents), how to maximize your FDIC coverage at a single bank, how to verify your bank is FDIC insured, the difference between FDIC, SIPC, and NCUA, the recent 2023 SVB/Signature/First Republic failures and how the FDIC handled them, and the FDIC’s free Electronic Deposit Insurance Estimator (EDIE) tool for calculating your specific coverage.

FDIC coverage rules: $250,000 per depositor, per insured bank, per ownership category

The FDIC coverage formula has three independent variables. Understanding all three is the key to knowing how much of your money is fully insured at any given bank:

Variable 1: per depositor (per person)

Each individual person is a separate depositor. A married couple is two depositors. Spouses each have their own $250,000 coverage in their own name, and joint accounts add additional coverage on top.

Variable 2: per insured bank

The $250,000 limit applies separately at each FDIC-insured bank. If you have accounts at Chase and Bank of America, you get $250,000 of coverage at Chase plus $250,000 at Bank of America. Both are separate FDIC certificates and separate coverage pools.

However, branches of the same bank do NOT count as separate banks. Your Wells Fargo California branch and your Wells Fargo New York branch are the same FDIC-insured bank with one shared $250,000 coverage pool per ownership category. Some bank holding companies own multiple separately-chartered banks (rare in 2026 but exists), in which case each separately-chartered bank has its own coverage pool.

Variable 3: per ownership category

The FDIC defines 8 separate account ownership categories, and each category has its own $250,000 coverage limit at each bank. This is how a couple can have more than $250,000 fully insured at a single bank, by spreading funds across multiple ownership categories.

The 8 FDIC account ownership categories

Each category below has its own independent $250,000 coverage limit at each insured bank, per depositor:

1. Single Accounts

Accounts owned by one person with no beneficiary or POD (payable-on-death) designation. Includes checking, savings, money market, and CDs in a single individual’s name. Coverage: $250,000 per owner, per insured bank.

2. Joint Accounts

Accounts owned by two or more people with equal withdrawal rights. Coverage: $250,000 per co-owner, per insured bank. A two-person joint account has $500,000 total coverage; a three-person joint account has $750,000.

The classic example: a married couple with a joint checking account has $500,000 of FDIC coverage on that one joint account, on top of any individual single accounts they may have in their own names.

3. Certain Retirement Accounts (IRAs)

Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, and certain self-directed Keogh accounts held at the insured bank in deposit products (checking, savings, money market, CDs). Coverage: $250,000 per owner, per insured bank, separate from other ownership categories.

Note: stocks, bonds, mutual funds, and ETFs held in an IRA through a bank’s brokerage subsidiary are NOT FDIC insured (they may have SIPC coverage instead). Only deposit products (cash, CDs, money market deposit accounts) inside the IRA are FDIC insured.

4. Revocable Trust Accounts (POD / In Trust For / Living Trust)

Accounts with a payable-on-death (POD) designation, “in trust for” (ITF) designation, or held in a revocable living trust naming specific beneficiaries. Coverage: $250,000 per owner, per beneficiary, per insured bank, up to a maximum of $1,250,000 (5 beneficiaries) per owner per bank.

Example: a single person with a $1,000,000 POD account naming 4 beneficiaries (spouse, two children, one sibling) has $1,000,000 fully covered (4 beneficiaries x $250,000 each, all under the single owner). Adding a 5th beneficiary would extend coverage to $1,250,000 maximum under this category.

5. Irrevocable Trust Accounts

Accounts held in an irrevocable trust, where the owner cannot change the beneficiaries. Coverage: $250,000 per non-contingent beneficiary, per insured bank. Complex – consult the FDIC EDIE tool or a financial advisor for specific irrevocable trust coverage.

6. Employee Benefit Plan Accounts

Accounts held by employer-sponsored retirement plans such as 401(k)s and pension plans, when the plan deposits funds at an insured bank. Coverage: $250,000 per participant in the plan, per insured bank.

7. Corporation, Partnership, and Unincorporated Association Accounts

Business accounts owned by a corporation, partnership, LLC, or unincorporated association. Coverage: $250,000 per entity, per insured bank. Multiple LLCs at the same bank, each separately incorporated, would each get $250,000 of coverage.

8. Government Accounts (Public Unit Accounts)

Accounts owned by federal, state, local, or tribal government entities. Coverage rules vary by deposit type and account location.

FDIC coverage example: how a family of two can have over $1 million fully insured at one bank

Sue and Bob, a married couple, can have over $1.5 million of fully FDIC-insured funds at a single insured bank by using multiple ownership categories. Here is the worked example, all at Chase Bank (or any other insured bank):

This example shows the power of the per-ownership-category rule. Most depositors with less than $250,000 in deposits do not need to think about FDIC categories at all (a single account covers it), but high-net-worth depositors, families with inheritance planning, and small business owners can structure accounts intentionally to maximize coverage.

Map of FDIC insured banks near me

Every U.S. bank shown on the map below is FDIC insured. Click any branch to see hours, contact info, and FDIC certificate details.

What deposits ARE FDIC insured

The following deposit account types are fully FDIC insured up to the coverage limits described above:

• Checking accounts: personal and business checking
• Savings accounts: traditional savings and high-yield savings (including online HYSA at FDIC-insured banks like Marcus, Ally, Discover, Synchrony, SoFi)
• Money market deposit accounts (MMDA): NOT to be confused with money market mutual funds, which are NOT FDIC insured
• Certificates of deposit (CDs): traditional CDs, jumbo CDs, no-penalty CDs, brokered CDs (when held at FDIC-insured banks)
• NOW accounts: negotiable order of withdrawal accounts (a checking-like savings hybrid)
• Cashier’s checks: when issued by an FDIC-insured bank, the cashier’s check is covered up to the limits
• Certified checks: similar coverage to cashier’s checks
• Money orders: when purchased from an FDIC-insured bank
• Outstanding cashier’s checks, money orders, and certified checks at a failed bank: included in deposit coverage
• Prepaid cards when the underlying funds are held at an FDIC-insured bank (varies by card issuer)

What is NOT FDIC insured

FDIC insurance does NOT cover the following, even when purchased through an FDIC-insured bank’s brokerage or investment subsidiary:

• Stocks, bonds, mutual funds, ETFs: these are investments, not deposits. Coverage may be available through SIPC (Securities Investor Protection Corporation) for brokerage accounts up to $500,000 ($250,000 cash limit). SIPC protects against broker-dealer failure, NOT investment losses from market declines.
• Money market mutual funds: distinct from money market deposit accounts (MMDA). Money market mutual funds are securities (covered by SIPC), not deposits (covered by FDIC). Read the prospectus to know which you have.
• Annuities: insurance products, not deposits. Coverage available through state insurance guaranty associations with much lower limits than FDIC.
• Life insurance policies: insurance products, not deposits. State guaranty association coverage.
• U.S. Treasury bonds, bills, and notes: NOT FDIC insured, but already backed by the full faith and credit of the U.S. government (effectively safer than FDIC coverage).
• Cryptocurrency: NOT FDIC insured. Crypto held at exchanges (Coinbase, Binance) and even crypto held in custody products at banks are NOT covered. Crypto-asset insurance through Lloyd’s of London or self-insurance pools exists but is not federal deposit insurance.
• Stablecoins: also NOT FDIC insured, even those that are advertised as “backed by” deposits at FDIC-insured banks. The stablecoin issuer’s bank deposits may be insured (up to the issuer’s coverage), but stablecoin holders are not FDIC depositors.
• Safe deposit box contents: jewelry, documents, gold, and other items stored in a bank’s safe deposit box are NOT FDIC insured. Consider private property insurance through your homeowner’s policy or a separate rider.
• Losses from theft, fraud, or unauthorized transactions: NOT FDIC. Consumer protection comes from Regulation E (60 days to dispute unauthorized electronic transactions for consumer accounts).
• Losses from your bank’s investment errors or trading mistakes on a brokerage account.
• Deposits at non-FDIC-insured banks: a small number of private banks, foreign bank branches, or specialty institutions are not FDIC insured. Always look for the “Member FDIC” sign.

How to check if your bank is FDIC insured

Three ways to verify FDIC insurance for any U.S. bank:

1. Look for the “Member FDIC” sign

Every FDIC-insured bank prominently displays the “Member FDIC” logo or “FDIC Insured” sign at every branch, in marketing materials, on debit and credit cards, on checks, and on the bank’s website. The standard FDIC logo includes a stylized eagle and the “Federal Deposit Insurance Corporation” name.

2. Use the FDIC’s free BankFind tool

Visit banks.data.fdic.gov/bankfind-suite and search for any U.S. bank by name. The FDIC publishes a free public database of every insured bank with its FDIC certificate number, charter type, primary regulator, total assets, and history of mergers and acquisitions. If a bank is not in BankFind, it is not FDIC insured.

3. Find the FDIC certificate number on your bank’s annual privacy notice or website

FDIC-insured banks include their FDIC certificate number on legal disclosures, annual privacy notices, and the bank’s “About Us” or “Investor Relations” page. Examples: Huntington Bank FDIC certificate #6560.

How to maximize your FDIC coverage

If you have more than $250,000 in deposits and want full FDIC coverage, three practical strategies:

Strategy 1: Use multiple FDIC-insured banks

The simplest approach. Split funds across 2 or 3 different FDIC-insured banks. Each bank’s $250,000 limit is independent. $250,000 at Chase + $250,000 at Bank of America + $250,000 at Marcus = $750,000 fully insured. Online banks like Ally, Discover, Marcus, Synchrony, and SoFi make this strategy easy because you can open new accounts entirely online.

Strategy 2: Use multiple ownership categories at one bank

As the Sue and Bob example shows above, a married couple can have $1,500,000+ fully insured at one bank through individual accounts, joint accounts, IRAs, and POD designations. Adding business accounts (a separately incorporated LLC counts as a separate $250,000 entity) extends coverage further.

Strategy 3: IntraFi Cash Service (formerly CDARS / ICS)

The IntraFi Cash Service (formerly CDARS for CDs and ICS for cash) is a network of banks that work together to spread a single customer’s deposits across multiple FDIC-insured banks for full coverage. You deposit $1,000,000 at one participating bank; IntraFi splits the funds into $250,000 chunks across multiple insured banks behind the scenes, while you see one account at your primary bank. Available at many U.S. community and regional banks; ask your banker about it.

Strategy 4: Use the FDIC’s EDIE calculator

The FDIC’s free Electronic Deposit Insurance Estimator (EDIE) tool at edie.fdic.gov walks you through your specific account structure and calculates exactly how much is covered and how much (if any) exceeds the FDIC limit. EDIE is the authoritative answer and far more reliable than guessing.

FDIC vs SIPC vs NCUA: which protects what

FDIC (Federal Deposit Insurance Corporation)

Insures bank deposits (checking, savings, MMDA, CDs) at FDIC-insured banks. $250,000 per depositor, per insured bank, per ownership category. Funded by premiums paid by member banks, not taxpayer money. Created 1933. Approximately 5,000 insured institutions in 2026.

SIPC (Securities Investor Protection Corporation)

Insures brokerage accounts (stocks, bonds, mutual funds, ETFs) at SIPC member broker-dealers. $500,000 per customer per brokerage firm, with a $250,000 cash sub-limit. SIPC protects against broker-dealer failure or fraud, NOT against investment losses from market declines. Created 1970.

NCUA (National Credit Union Administration)

Insures credit union deposits through the National Credit Union Share Insurance Fund (NCUSIF) at federally insured credit unions. $250,000 per share owner, per insured credit union, per account ownership category, with the same ownership categories and rules as FDIC. Credit unions display “Federally Insured by NCUA” instead of “Member FDIC.” All major U.S. credit unions on this site (Navy Federal, PenFed, SECU of NC, Bellco) are NCUA insured, not FDIC. NCUA coverage is equivalent in protection and limit to FDIC coverage.

State insurance guaranty associations (annuities, life insurance)

Annuities and life insurance policies are covered by state insurance guaranty associations, with limits varying by state (typically $250,000 to $500,000 for annuities; $300,000 for life insurance death benefit). Coverage is materially weaker and slower to pay out than FDIC.

Recent bank failures and how the FDIC handled them

March 2023: Silicon Valley Bank, Signature Bank, Silvergate

In March 2023, three large U.S. banks failed in rapid succession: Silicon Valley Bank (SVB) in Santa Clara, CA (failed March 10, 2023, ~$209 billion in assets, the second-largest U.S. bank failure ever), Signature Bank in New York (failed March 12, 2023, ~$110 billion in assets), and Silvergate Bank in La Jolla, CA (failed March 8, 2023, ~$11 billion in assets, voluntary wind-down).

The FDIC took over SVB and Signature as receiver. Importantly, the U.S. Treasury, Federal Reserve, and FDIC together invoked the “systemic risk exception” and announced that all SVB and Signature depositors would be made whole regardless of the $250,000 limit, including the substantial uninsured deposits held by tech startups and venture capital funds. This was a one-time exception, not a permanent FDIC policy. Subsequent failed banks have used standard FDIC rules.

May 2023: First Republic Bank

First Republic Bank in San Francisco failed May 1, 2023, ~$229 billion in assets, the third-largest U.S. bank failure ever. The FDIC arranged for JPMorgan Chase to acquire substantially all of First Republic’s deposits and assets, ensuring continuity of operations and depositor protection. First Republic depositors became Chase customers.

2023-2026 general FDIC handling pattern

Smaller bank failures in 2024-2026 have followed the standard FDIC playbook: the FDIC takes the bank into receivership, arranges a sale to a healthy acquiring bank (or pays out insured deposits if no acquirer is found), and depositors typically have access to their insured funds within 1-3 business days. The U.S. banking system has had no depositor losses on FDIC-insured deposits in the 90+ years since FDIC creation.

1933 FDIC history: response to the Great Depression bank failures

The FDIC was created on June 16, 1933 by the Banking Act of 1933 (also known as the Glass-Steagall Act), signed by President Franklin D. Roosevelt. The agency was a direct response to the catastrophic bank failures of the Great Depression: approximately 9,000 U.S. banks failed between 1929 and 1933, wiping out depositor savings and contributing to the depression’s economic collapse.

The original 1933 FDIC coverage limit was $2,500 per depositor (roughly $58,000 in 2026 dollars). The limit has been raised many times:

Since 1933, no depositor has ever lost a penny of FDIC-insured funds at a failed insured bank. The FDIC is funded by premiums paid by member banks (not taxpayer money) and has emergency authority to borrow from the U.S. Treasury if reserves are exhausted.

Frequently asked questions

What is FDIC insurance?

FDIC insurance is the U.S. federal deposit insurance program that protects your money at insured banks if the bank fails. The Federal Deposit Insurance Corporation (FDIC), created in 1933, insures deposits up to $250,000 per depositor, per insured bank, per account ownership category. Since 1933, no depositor has ever lost a penny of FDIC-insured funds at a failed insured bank.

What is the FDIC coverage limit?

The current FDIC coverage limit is $250,000 per depositor, per insured bank, per account ownership category. This is the amount per individual person, at each separate FDIC-insured bank, for each of 8 separate ownership categories (single accounts, joint accounts, IRAs, revocable trust accounts, irrevocable trust accounts, employee benefit plans, business accounts, government accounts). The same person can have substantially more than $250,000 of FDIC coverage at a single bank by spreading funds across multiple ownership categories.

How do I know if my bank is FDIC insured?

Look for the “Member FDIC” logo or “FDIC Insured” sign at the branch, on the bank’s website, and on marketing materials. You can also search the FDIC’s free BankFind tool at banks.data.fdic.gov/bankfind-suite by bank name to confirm insurance status and find the FDIC certificate number.

Are all U.S. banks FDIC insured?

Almost all major U.S. retail banks are FDIC insured. The exceptions are a small number of private banks, foreign bank U.S. branches, and specialty institutions that are not FDIC insured. Credit unions are NOT FDIC insured; they are insured by the NCUA (National Credit Union Administration) through the National Credit Union Share Insurance Fund with equivalent $250,000 coverage rules.

Is my IRA at a bank FDIC insured?

The portion of your IRA held in deposit products (checking, savings, money market deposit accounts, CDs) at an FDIC-insured bank is FDIC insured, with a separate $250,000 limit in the “certain retirement accounts” category. Investments in your IRA (stocks, bonds, mutual funds, ETFs) held through a bank brokerage subsidiary are NOT FDIC insured but may have SIPC coverage instead.

Are joint accounts FDIC insured?

Yes. Joint accounts are a separate FDIC ownership category with $250,000 of coverage per co-owner. A two-person joint account has $500,000 of FDIC coverage; a three-person joint account has $750,000. This is separate from any single-name accounts the same owners may have at the same bank, which have their own $250,000 limits.

How can I have more than $250,000 fully FDIC insured at one bank?

Three strategies: (1) use multiple ownership categories at the same bank (a married couple with individual accounts, joint accounts, IRAs, and POD designations can have $1,500,000+ fully insured at one bank); (2) use the IntraFi Cash Service (formerly CDARS/ICS), a network that spreads large deposits across multiple FDIC-insured banks for full coverage while you see one account; (3) use multiple separate banks (the simplest approach, with $250,000 of independent coverage at each).

What is NOT FDIC insured?

Stocks, bonds, mutual funds, ETFs, money market mutual funds (different from money market deposit accounts), annuities, life insurance, Treasury bonds (not FDIC but already government-backed), cryptocurrency, stablecoins, safe deposit box contents, and losses from theft or fraud (covered separately by Regulation E). Investments held through a bank’s brokerage subsidiary are not FDIC insured even though the bank itself is FDIC insured.

Are online-only banks FDIC insured?

Yes, the major online-only banks are FDIC insured. Ally Bank, Marcus by Goldman Sachs, Discover Bank, Synchrony Bank, SoFi Bank, FNBO Direct, and other major online-only U.S. banks are all FDIC insured with the standard $250,000 per depositor, per bank, per ownership category coverage.

Is cryptocurrency FDIC insured?

No. Cryptocurrency held at exchanges (Coinbase, Binance, Kraken, etc.) and even crypto-asset custody products offered at some banks are NOT FDIC insured. The FDIC has explicitly stated that crypto-assets are not deposits and not covered. Even if a stablecoin issuer holds deposits at an FDIC-insured bank, stablecoin holders are not FDIC depositors and have no direct FDIC claim.

How quickly do depositors get their money after a bank fails?

Typically within 1-3 business days of an FDIC takeover. The FDIC’s standard process is to take the failed bank into receivership on a Friday afternoon (when markets close), arrange or finalize a sale to an acquiring bank over the weekend, and reopen the bank under new ownership on Monday morning. Depositors usually have uninterrupted access to their insured funds through the same accounts and ATMs.

What happens if I have more than $250,000 at a failed FDIC bank?

Your insured portion (up to $250,000 per ownership category) is paid out by FDIC quickly. The uninsured portion becomes a claim against the failed bank’s estate; you may receive partial recovery over months to years as the bank’s assets are liquidated, but you are not guaranteed full recovery. The 2023 SVB and Signature failures used a one-time “systemic risk exception” to make uninsured depositors whole; that exception is not standard FDIC policy.

Are credit unions FDIC insured?

No. Credit unions are insured by the NCUA (National Credit Union Administration) through the National Credit Union Share Insurance Fund (NCUSIF), not by the FDIC. NCUA coverage is equivalent in protection and limit ($250,000 per share owner, per insured credit union, per account ownership category) but is a separate insurance program. Look for “Federally Insured by NCUA” signage at credit unions. All major U.S. credit unions on this site (Navy Federal, PenFed, SECU of NC, Bellco) are NCUA insured.

For more banking guides

• What is a Routing Number, the 9-digit ABA code that identifies your US bank, where to find yours, and the routing number directory for major US banks
• How to Open a Bank Account, step-by-step guide to opening a US bank account, documents needed, online vs in-branch, ChexSystems screening, no-ChexSystems banks, ITIN for immigrants, minor and joint accounts
• How to Switch Banks, the 9-step switching process, re-routing direct deposit and bill pay, common mistakes (closing old account too soon), and bank-provided switching tools
• Banks Open Now Near Me, the right-now lookup matrix by day-of-week and time-of-day
• Banks Open on Holidays Near Me, the 11 federal holiday schedule
• Banks Open on Saturday Near Me, Saturday hours by bank
• Banks Open on Christmas Day, Dec 25 closure and Christmas Eve early-close hours
• Banks Open on Thanksgiving Day, Thursday Thanksgiving closure and Black Friday open status
• Drive Thru Banks Near Me, drive-up window vs drive-thru ATM
• ATM Near Me, find ATMs at any bank, surcharge-free options, and Envelope-Free Deposit ATMs
• Banks Near Me homepage, a directory of 80+ U.S., U.K., and international banks