Guide · Safety · 5 min read

FDIC Deposit Insurance Explained

Q: How much does FDIC insurance cover?

FDIC insurance covers up to $250,000 per depositor, per insured bank, per account ownership category. A married couple can have up to $500,000 covered at a single bank by using joint accounts.

Q: Are all bank accounts FDIC insured?

Checking, savings, money market deposit accounts, and CDs at FDIC-insured banks are covered. Investment products like mutual funds, stocks, bonds, and annuities are NOT covered, even if bought at a bank.

Q: What happens when an FDIC-insured bank fails?

The FDIC typically arranges for another bank to take over the accounts. If no buyer is found, the FDIC mails checks to depositors. Insured deposits are usually available within one business day of a bank closure.

The Federal Deposit Insurance Corporation has protected bank depositors since 1933. Here's exactly how it works and what it covers.

Compiled by PlainBankData, Independent data publisher

$250,000
Per depositor, per category: 1933
FDIC founded: $0
Lost on insured deposits since 1934: 1 day
Typical access after a failure

The short answer

FDIC insurance protects up to $250,000 per depositor, per insured bank, per ownership category, and no depositor has ever lost insured funds since 1934.

$250,000
per ownership category: $500,000
a married couple via joint accounts: 1 business day
typical access after a closure: 0
insured dollars lost since 1934

Deposit accounts are covered; investment products like stocks, bonds, mutual funds, and annuities are not, even when bought at a bank.

PlainBankData Published March 23, 2026 Updated July 6, 2026

$250,000

Per depositor, per insured bank, per account category

Since 1934, no depositor has ever lost a single penny of FDIC-insured funds.

What Is FDIC Insurance?

The FDIC is an independent US government agency created in 1933 after thousands of banks failed during the Great Depression. It insures deposits at member banks so that depositors don't lose their money if their bank fails.

What's Covered

Checking accounts - including demand deposit accounts
Savings accounts - including passbook savings
Money market deposit accounts (MMDAs) - not money market mutual funds
Certificates of deposit (CDs)
Negotiable Order of Withdrawal (NOW) accounts

What's NOT Covered

Stocks, bonds, mutual funds, or ETFs (even if purchased at a bank)
Annuities or life insurance policies
Safe deposit box contents
Losses from investment fraud
Cryptocurrency or digital assets

Coverage Limits by Account Type

The $250,000 limit applies per ownership category, not just per account. This means you can have more than $250,000 protected at a single bank by using different account categories:

Single accounts - $250,000 per owner
Joint accounts - the same per-owner ceiling applies per co-owner (married couple = $500,000 combined)
Retirement accounts (IRAs, 401(k)) - the standard cap per owner
Trust accounts - coverage extends per beneficiary at the standard cap
Business accounts - the same per-account-category ceiling per business entity

What Happens When a Bank Fails?

When the FDIC closes a bank, it typically:

Arranges for another bank to acquire the deposits (most common). Your accounts transfer seamlessly, you can still access your money the next business day.
If no buyer is found, the FDIC mails checks directly to depositors for their insured balances, usually within 1-2 business days.

Frequently Asked Questions

How much does FDIC insurance cover?

$250,000 per depositor, per insured bank, per account ownership category. Married couples can have up to $500,000 covered using joint accounts.

Are all bank accounts FDIC insured?

Checking, savings, money market deposit accounts, and CDs are covered. Investment products like mutual funds, stocks, bonds, and annuities are NOT covered, even if purchased at a bank branch.

What happens when an FDIC-insured bank fails?

The FDIC typically arranges for another bank to take over accounts. If no buyer is found, the FDIC pays depositors directly. Insured deposits are usually available within one business day.

Verify Your Coverage: Use the FDIC EDIE tool to calculate your exact coverage based on your accounts.

Protect your deposits

Three steps to make sure your money is fully covered.

Confirm your exact coverage with the FDIC EDIE estimator before parking a large balance. FDIC EDIE
Check that your bank is FDIC-insured and review its health grade. Browse banks
Spread balances above the limit across the safest banks nationwide. Safest banks

Not financial advice. Health grades are PlainBankData's interpretation of public FDIC Call Report data, not official FDIC ratings.

Every figure on PlainBankData is rendered directly from FDIC federal source data, no number is typed in by an editor. This page draws directly on FDIC federal source data, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of Q4 2025.

Disclaimer: Data from the FDIC BankFind Suite. PlainBankData does not rate or rank banks as investment or safety recommendations. Health grades are informational only, computed from public regulatory filings. Always verify current standing directly with FDIC.gov before making financial decisions.