Jeffrey Wade
Bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC), an independent agency of the US government that was founded in 1933 to maintain stability and
| Characteristics | Values |
|---|---|
| Type of Insurance | FDIC |
| Insured Amount | Up to $250,000 per depositor, per FDIC-insured bank, for each account ownership category |
| Coverage | Covers deposit accounts and other official items such as cashier's checks and money orders |
| Protection | Protects against the loss of insured funds in the event of bank failure |
| Eligibility | All FDIC-insured banks |
| Exclusions | Does not cover financial instruments such as stocks, bonds, money market funds, cryptocurrency, etc. Does not cover share accounts at credit unions |
| Additional Benefits | Helps maintain stability and public confidence in the U.S. financial system |
| Resources | FDIC website provides resources and an Electronic Deposit Insurance Estimator (EDIE) to calculate coverage |
| Contact | 1-877-275-3342 (1-877-ASK-FDIC) for specific deposit insurance questions |
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What You'll Learn
FDIC insurance covers deposit accounts and other items
The Federal Deposit Insurance Corporation (FDIC) guarantees bank customers against loss of up to $250,000 per depositor per FDIC-insured bank if their bank or thrift institution fails. FDIC insurance covers deposits in all types of accounts at FDIC-insured banks, including checking and savings accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). FDIC insurance covers the principal and interest of an account, not exceeding the $250,000 limit.
FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category. All deposits in the same ownership category at the same FDIC-insured bank are added together to determine FDIC deposit insurance coverage. However, you may qualify for more than $250,000 in FDIC deposit insurance coverage if you deposit money in accounts that are in different ownership categories. For example, if you have a single ownership account at an FDIC-insured bank and a joint ownership account with one or more people at the same bank, you will be insured for up to $250,000 for your single ownership account deposits and separately for your ownership interest up to $250,000 for all your joint ownership account deposits.
FDIC insurance also covers deposit accounts held in connection with irrevocable trusts, where the owner contributes deposits or other property to the trust and gives up all power to cancel or change the trust. The FDIC uses the formula: Number of Owners x Number of Beneficiaries x $250,000 = Amount Insured (up to $1,250,000 per owner for all trust accounts).
It's important to note that FDIC insurance does not cover all types of accounts or financial institutions. It does not cover non-deposit investment products, even those offered by FDIC-insured banks, and does not cover default or bankruptcy of any non-FDIC-insured institution. Financial instruments such as stocks, bonds, money market funds, cryptocurrency, U.S. Treasury securities (T-bills), safe deposit boxes, annuities, and insurance products are not insured by the FDIC.
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FDIC insurance covers up to $250,000 per depositor
The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance to protect your money in the event of a bank failure. FDIC insurance covers up to $250,000 per depositor, per FDIC-insured bank, for each account ownership category. This means that if you have multiple accounts in different ownership categories at the same bank, you may qualify for more than $250,000 in FDIC insurance coverage. For example, if you have a single ownership account and a joint ownership account at the same bank, you will be insured for up to $250,000 for your single ownership account and up to $250,000 for your ownership interest in the joint account.
FDIC insurance is automatic when you open a deposit account at an FDIC-insured bank. You can confirm that your bank is insured by searching for it in the BankFind tool on the FDIC website or by calling the FDIC. The FDIC deposit insurance covers the balance of each depositor's account, including principal and any accrued interest, up to the insurance limit of $250,000. This insurance protects your money in traditional deposit accounts such as checking accounts, savings accounts, and Certificates of Deposit (CDs).
It's important to note that FDIC insurance does not cover all types of accounts. Financial instruments such as stocks, bonds, cryptocurrency, and insurance products are not insured by the FDIC. Additionally, the FDIC does not insure regular shares and share draft accounts of credit unions; these are insured by the National Credit Union Share Insurance Fund, administered by the National Credit Union Administration (NCUA).
The FDIC helps maintain stability and public confidence in the U.S. financial system. Since its founding in 1933, no depositor has lost any FDIC-insured funds. In the event of a bank failure, the FDIC acts quickly to ensure that all depositors get prompt access to their insured deposits. The FDIC maintains the Deposit Insurance Fund (DIF), which is backed by the full faith and credit of the United States government, to insure deposits and protect depositors.
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FDIC insurance covers different ownership categories
The Federal Deposit Insurance Corporation (FDIC) insures deposits and protects depositors of FDIC-insured banks. FDIC insurance covers traditional deposit accounts, and depositors do not need to apply for FDIC insurance. Coverage is automatic when a deposit account is opened at an FDIC-insured bank or financial institution.
For example, if you have a single ownership account at an FDIC-insured bank and a joint ownership account with one or more people at the same bank, you will be insured for up to $250,000 for your single ownership account deposits and also insured separately for your ownership interest up to $250,000 for all of your joint ownership account deposits. Similarly, if you have a single ownership account in one FDIC-insured bank and another single ownership account in a different FDIC-insured bank, you will be insured for up to $250,000 for each single account.
FDIC deposit insurance coverage is provided for funds held in different rights and capacities (or ownership categories). Accounts held in different rights and capacities receive separate deposit insurance coverage. The number of accounts a depositor establishes within an ownership category has no impact on the maximum amount of deposit insurance coverage provided. It is the total dollar amount of all deposit accounts within a specific ownership category that is considered when determining insurance coverage.
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FDIC insurance covers eligible bank accounts
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the US government that insures deposits in FDIC-insured banks. FDIC insurance covers eligible bank accounts up to a limit of $250,000 per depositor, per FDIC-insured bank, and per ownership category. This means that if you have multiple accounts in different ownership categories at the same bank, you may qualify for more than $250,000 in FDIC insurance coverage. For example, if you have a single ownership account and a joint ownership account at the same bank, you will be insured for up to $250,000 for your single ownership deposits and an additional $250,000 for your joint ownership deposits.
FDIC insurance covers traditional deposit accounts, such as checking accounts, savings accounts, certificates of deposit (CDs), money market deposit accounts (MMDA), and negotiable orders of withdrawal (NOW). It also covers cashier's checks, money orders, and individual retirement accounts (IRAs). However, it is important to note that FDIC insurance does not cover all types of accounts or financial products. It does not cover non-deposit investment products, even if they are offered by FDIC-insured banks. This includes financial instruments such as stocks, bonds, money market funds, cryptocurrency, U.S. Treasury securities, safe deposit boxes, annuities, and insurance products.
To determine if your bank is FDIC-insured, you can use the FDIC BankFind Suite search tool or look for the FDIC insurance logo on the bank's website. If your bank is FDIC-insured, your deposits are automatically covered up to the $250,000 limit. You can also use the FDIC's Electronic Deposit Insurance Estimator (EDIE) to calculate how much of your funds are covered by FDIC insurance.
Since its founding in 1933, the FDIC has maintained stability and public confidence in the US financial system by protecting depositors' funds in the event of bank failure. As of March 2025, there were approximately 4,400 FDIC-insured banks in the United States.
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FDIC insurance and how it differs from SIPC insurance
FDIC insurance, or Federal Deposit Insurance Corporation insurance, is an independent agency of the US government that protects consumers against the loss of their deposits in an FDIC-insured bank or savings association that fails. FDIC insurance covers deposit accounts like checking accounts, savings accounts, money market accounts, and certificates of deposit. FDIC insurance covers up to $250,000 per depositor, per bank account, and for every insured ownership category. FDIC insurance is backed by the full faith and credit of the United States government.
SIPC insurance, or Securities Investor Protection Corporation insurance, on the other hand, protects consumers' assets in a brokerage account. SIPC insurance covers assets and cash in a brokerage account up to a certain amount. The SIPC coverage limit is $500,000 in total value per customer, with $250,000 of that able to be in cash. Unlike the FDIC, the SIPC is a nonprofit organization that does not have the authority to investigate complaints or regulate its members. The SIPC does not protect investors against financial losses; it only protects investors if a brokerage firm files for bankruptcy or is considered financially troubled.
While both FDIC and SIPC insurance programs have a similar purpose, they are not interchangeable. FDIC insurance protects consumers' assets held in banks or savings associations, while SIPC insurance protects consumers' brokerage account assets. FDIC insurance is backed by the US government, while SIPC insurance is a nonprofit organization. FDIC insurance covers deposit accounts, while SIPC insurance covers assets and cash in a brokerage account. FDIC insurance is automatic, while SIPC insurance requires the impacted investor to file a claim.
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Frequently asked questions
FDIC stands for Federal Deposit Insurance Corporation. It is an independent agency of the US government that protects you against the loss of your deposits in an FDIC-insured bank or savings association that fails.
FDIC insurance covers up to \$250,000 per depositor, per FDIC-insured bank, for each account ownership category.
If a bank is federally insured, it will have the FDIC insurance logo on its website. You can also check out the FDIC Bank Find Suite page.
FDIC insurance covers deposit accounts and other official items such as cashier’s checks and money orders. It does not cover all types of accounts, for example, stocks, bonds, money market funds, cryptocurrency, and insurance products.
