FDIC deposit insurance generally protects up to $250,000 per depositor, per FDIC-insured bank, per ownership category. The limit is not per account number or branch: eligible deposits you own in the same category at the same bank are added together. What matters is who legally owns the funds, where they are held, and how the account is categorized.
Use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to estimate coverage for your own accounts. Complex trusts, business accounts, employee benefit plans, government accounts, and fintech arrangements may need closer review of the FDIC’s rules.
How the $250,000 FDIC limit works
The standard maximum is $250,000 for each depositor, at each FDIC-insured bank, in each ownership category. The FDIC explains the rule in Understanding Deposit Insurance.
To calculate coverage, group deposits by the legal bank, owner, and ownership category. Accounts held by the same depositor in the same category at one insured bank are combined, including accrued interest through the date of the bank’s failure. Separate account numbers or branches at that bank do not create additional limits. Deposits at separately chartered insured banks are evaluated separately.
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- Example: If one person has $150,000 in a savings account and $125,000 in a certificate of deposit in the same ownership category at one insured bank, the combined $275,000 exceeds that category’s standard limit.
- That person may have more than $250,000 insured at the same bank if deposits genuinely qualify in separate ownership categories and meet each category’s requirements. Merely changing an account label does not establish a different category.
Which accounts and products are covered
FDIC insurance applies to qualifying deposits at an insured depository institution, not to every financial product a bank or financial brand may offer. Covered deposit types include:
- Checking and Negotiable Order of Withdrawal (NOW) accounts
- Savings accounts and money market deposit accounts
- Time deposits, including certificates of deposit (CDs)
- Certain official bank items, such as cashier’s checks and money orders
- Some prepaid cards, when the program and account meet FDIC requirements
The FDIC’s product coverage guidance describes which financial products are and are not covered.
What FDIC deposit insurance does not cover
FDIC deposit insurance does not protect investments or valuables just because a bank sells, holds, or helps administer them. Products and property not covered by FDIC deposit insurance include:
- Stocks, bonds, and mutual funds
- Crypto assets
- Annuities and life insurance policies
- Municipal securities
- U.S. Treasury bills, bonds, and notes
- Safe deposit boxes and their contents
Treasury securities have a distinct form of U.S. government backing; that is not FDIC deposit insurance. A safe deposit box is not a deposit account.
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Ownership categories change how deposits are counted
The FDIC recognizes categories that include single accounts, joint accounts, certain retirement accounts, trust accounts, employee benefit plan accounts, corporation, partnership and unincorporated association accounts, and government accounts. Each category has its own conditions; account names alone do not determine the result.
Single and joint accounts
Single-account deposits are grouped with other deposits owned by the same person in that category at the same bank. Joint accounts are subject to documentation and ownership requirements, including equal withdrawal rights for co-owners. If those requirements are not met, the expected joint-account treatment may not apply.
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Trust and retirement accounts
Trust coverage can depend on the account owner, eligible beneficiaries, and applicable limits. Certain retirement accounts receive a separate category, but not every account described as a retirement account necessarily qualifies. Review the FDIC’s category-specific rules rather than assuming that account titling alone determines coverage.
Business, employee benefit, and government accounts
Business-entity coverage is generally based on the separately organized entity, not simply the number of members or signatories. Employee benefit plan and government accounts also have specific calculation rules. Because these categories can involve detailed conditions, use FDIC guidance or seek qualified advice for a complex arrangement.
How coverage works if a bank fails
When an FDIC-insured bank fails, insurance protects qualifying deposits up to the applicable limit, including principal and interest accrued or due through the date of default. The FDIC may arrange for an acquiring institution to assume insured deposits. If that does not happen, the FDIC identifies customers and calculates coverage as part of resolving the failure. The outcome and timing depend on the specific failure, so a universal payout timetable should not be assumed.
Coverage is automatic for qualifying deposits held at an insured bank; depositors do not apply for insurance. However, they should verify that the institution holding their money is FDIC-insured and identify the legal bank behind any financial brand or intermediary.
Fintech and other third-party accounts
A fintech app, broker, or other intermediary does not create a new FDIC ownership category. In some arrangements, a deposit held at an insured bank through a third party may receive pass-through insurance as if the actual customer owned the deposit directly. That treatment depends on satisfying FDIC requirements, including records that identify the actual owners and their interests.
If the requirements are not met, funds may instead be combined with the intermediary’s other deposits and insured under the applicable category and limit. A provider’s general statement that funds are “FDIC insured” is not, by itself, a guarantee that every customer balance is fully covered. Confirm which bank holds the funds and whether the arrangement’s records support pass-through treatment.
How to estimate your own FDIC coverage
- Find the legal name of the bank holding each deposit and confirm that it is FDIC-insured.
- Gather account balances, including applicable accrued interest, plus account owners, account titles, and beneficiary details.
- Assign each account to its actual ownership category, based on ownership and the category’s requirements—not just the name shown in an app.
- Add deposits that belong to the same depositor, in the same category, at the same insured bank.
- For brokered or fintech deposits, identify the bank holding the funds and check whether the records and account relationship satisfy pass-through requirements.
- Enter the information in the FDIC’s Electronic Deposit Insurance Estimator (EDIE). For a complicated trust, business, employee-plan, or government account, consult the FDIC’s detailed guidance or a qualified professional.
The FDIC says an official digital FDIC sign is to appear on bank websites, bank applications, and certain ATMs beginning March 1, 2026. Treat signage as one clue when checking an institution; the legal bank identity and the way funds are held still matter.
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