FDIC Insurance: Is Your Savings Safe?

Everything you need to know about how the federal government protects your bank deposits, the coverage limits, and strategies to maximize your insured savings.

What Is FDIC Insurance?

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency created in 1933 in response to the thousands of bank failures during the Great Depression. Its purpose is simple: protect depositors if their bank fails.

Every FDIC-insured bank displays the official FDIC logo, and deposits are backed by the full faith and credit of the United States government. Since the FDIC was founded, no depositor has ever lost a penny of insured funds.

FDIC insurance covers checking accounts, savings accounts, certificates of deposit (CDs), and money market deposit accounts. Coverage is automatic — you don't need to apply or sign up for anything.

The $250,000 Limit

The standard FDIC insurance limit is $250,000 per depositor, per insured bank, per ownership category. Here's what that means in practice:

1.

Single Account

One person with accounts at one bank is insured up to $250,000 total across all single-ownership accounts at that bank.

2.

Joint Account

A joint account with two owners is insured up to $500,000 (2 × $250,000). Each co-owner's share is insured up to $250,000.

3.

Revocable Trust Account

Revocable trust accounts (including payable-on-death accounts) are insured up to $250,000 per beneficiary. A trust with three beneficiaries could be covered for up to $750,000 at a single bank.

What FDIC Covers

✓ Covered

  • ✓ Checking accounts
  • ✓ Savings accounts
  • ✓ Certificates of deposit (CDs)
  • ✓ Money market deposit accounts

✗ NOT Covered

  • ✗ Stocks
  • ✗ Bonds
  • ✗ Mutual funds
  • ✗ Crypto assets
  • ✗ Life insurance policies
  • ✗ Annuities
  • ✗ Safe deposit box contents

Online Banks Are Covered Too

A common concern is whether online-only banks are as safe as traditional brick-and-mortar banks. The answer is yes — there is absolutely no difference in FDIC coverage.

Online banks like Marcus by Goldman Sachs, Barclays, and Capital One are FDIC members and provide the same $250,000-per-depositor protection as any physical bank. In fact, because online banks have lower overhead costs, they often offer significantly higher interest rates on savings accounts.

You can verify any bank's FDIC insurance status using the BankFind tool on the FDIC's official website at fdic.gov.

What Happens If Your Bank Fails?

If an FDIC-insured bank fails, the FDIC immediately steps in to protect depositors. The process is designed to be as seamless as possible:

  • 1.The FDIC typically arranges for a healthy bank to acquire the failed bank's deposits. Your accounts are transferred automatically, and you can usually access your money within a few business days.
  • 2.If no acquiring bank is found, the FDIC will mail you a check for your insured balance, usually within two business days of the bank's closing.
  • 3.No paperwork is required from you. The FDIC already has your account information and handles the process automatically.
  • 4.You will never lose any insured money. Since 1933, no depositor has lost a single cent of FDIC-insured funds.

How to Get More Coverage

If you have more than $250,000 in savings, there are several strategies to ensure all of your money is fully FDIC-insured:

1.

Use Multiple Banks

Each FDIC-insured bank provides a separate $250,000 of coverage. Spreading your deposits across multiple banks is the simplest way to increase your total insured amount.

2.

Open Joint Accounts

A joint account held by two people is insured up to $500,000 per bank. This is in addition to each person's individual $250,000 coverage.

3.

Add Beneficiaries

Payable-on-death (POD) and revocable trust accounts are insured up to $250,000 per beneficiary. Adding three beneficiaries to a POD account could give you up to $750,000 in coverage at a single bank.

4.

Use Different Ownership Categories

The FDIC insures each ownership category separately. At a single bank, you could have $250,000 in an individual account, $500,000 in a joint account, and $250,000 per beneficiary in a trust account — all fully insured.

FDIC vs NCUA

Credit unions are not insured by the FDIC. Instead, they are covered by the National Credit Union Administration (NCUA), a separate federal agency.

The NCUA provides the same $250,000 per depositor coverage limit as the FDIC. The protection is functionally equivalent — your deposits at a federally insured credit union are just as safe as deposits at an FDIC-insured bank.

The key difference is simply which type of institution you're using: banks are FDIC-insured, and credit unions are NCUA-insured. Both are backed by the U.S. government.

Frequently Asked Questions

Is my money safe in a high-yield savings account?

Yes. High-yield savings accounts at FDIC-insured banks have the same federal protection as any other bank deposit. Your money is insured up to $250,000 per depositor, per bank, per ownership category. Online banks and traditional brick-and-mortar banks receive identical FDIC coverage.

What is the FDIC insurance limit?

The standard FDIC insurance limit is $250,000 per depositor, per insured bank, per ownership category. This means a single person can have $250,000 covered at one bank, while a married couple with a joint account can have $500,000 covered at the same bank.

What happens if my bank fails?

If your FDIC-insured bank fails, the FDIC steps in to protect your deposits. In most cases, the FDIC arranges for another bank to take over the failed bank’s accounts, and you can access your money within a few business days. If no acquiring bank is found, the FDIC will mail you a check for your insured balance. No paperwork is required from you.

Does FDIC cover online banks?

Yes. Online banks that are FDIC members receive the exact same deposit insurance as traditional brick-and-mortar banks. Banks like Marcus by Goldman Sachs, Barclays, and Capital One all carry full FDIC insurance. You can verify any bank’s FDIC status using the BankFind tool on the FDIC website.

How can I get more than $250,000 in FDIC coverage?

You can increase your total FDIC coverage by spreading deposits across multiple banks, opening joint accounts (which are insured up to $500,000 per couple per bank), adding beneficiaries to payable-on-death (POD) accounts ($250,000 per beneficiary), and using different ownership categories such as individual, joint, and trust accounts at the same bank.

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