What accounts does the FDIC cover?
These financial products are covered by FDIC insurance in the event of bank failure:
- Checking and savings accounts
- Money market accounts
- Certificates of deposit (CDs)
The FDIC also covers some prepaid cards, negotiable order of withdrawal (NOW) accounts, and other products your insured bank officially offers.
The FDIC insures deposits up to $250,000 per ownership category. So you can deposit $250,000 in category A and $100,000 in category B at the same bank, and your $350,000 total deposits would be insured 100%. See all ownership categories below.
Single accounts
Checking, savings, and money market accounts are all categorized as single accounts. So if you deposit $200,000 in a checking account and $200,000 in a savings account at the same bank, only $250,000 of your $400,000 deposit would be insured.
Retirement accounts
Individual retirement accounts (IRAs) and 401(k)s are both categorized as retirement accounts. So if you deposit $200,000 in an IRA and $200,000 in a 401(k) at the same bank, only $250,000 of your $400,000 deposit would be insured.
Under the same ownership category fall self-directed defined contribution plans, self-directed Keogh plan accounts, and Section 457 deferred compensation plan accounts.
Joint accounts
Deposit accounts owned by two or more people are categorized as joint accounts. These are insured up to $250,000 per account owner. So two owners would be insured up to $500,000, and three owners would be insured up to $750,000.
Other ownership categories
The following ownership categories are insured separately:
- Revocable trust accounts
- Irrevocable trust accounts
- Employee benefit plan accounts
- Corporation, partnership, or unincorporated association accounts
- Government accounts
The FDIC insures each ownership category up to $250,000 per bank, per account owner.
What accounts does the FDIC not cover?
These financial products are not covered by FDIC insurance:
- Stock investments
- Bond investments
- Mutual funds
- Crypto Assets
- Life insurance policies
- Annuities
- Municipal securities
- Safe deposit boxes or their contents
- U.S. Treasury bills, bonds, or notes
Bear in mind that although FDIC insurance does not cover the loss of U.S. treasury bills, bonds, or notes, these investments are guaranteed by the U.S. government.
What happens when more than one person owns an account?
FDIC insurance covers each account owner up to $250,000. So if you share a savings account with your spouse and there is $700,000 in it, each of you will be covered for up to $250,000 for the loss of that account, for a total recovery of $500,000.
But let's say you share that savings account with your spouse and two adult children, and you all have an equal stake in it. Each of you would be insured for $250,000. Because $250,000 x 4 = $1 million, you would easily have enough coverage to recover the entire $700,000 balance.
How do I know if my bank is FDIC insured?
You can check whether your bank is FDIC insured on the FDIC BankFind Suite webpage. Or, call the FDIC at 877-ASK-FDIC (877-275-3342) and ask to speak with a deposit insurance specialist. They will be happy to let you know whether your bank provides the coverage you need.
You can also call the bank manager and ask if your deposits are protected by FDIC insurance. Or, search your bank's website -- it'll probably advertise it somewhere.
If you want to open an FDIC-insured account, get started with one of our lists of top-rated accounts. In most of our in-depth reviews, we share whether an account is FDIC-insured:
If your financial institution fails and it is FDIC insured, there is no reason to panic. Since January 1, 1934, the first day FDIC insurance was in effect, no depositor has lost a single penny of insured funds due to bank failure. That's a pretty impressive track record and a good reason to make sure your bank is FDIC insured.