Have you ever wondered if your money in the bank is safe? Money in an FDIC-insured financial institution is fully protected up to $250,000 or more, depending on how the ownership of your accounts is structured. We will cover more about that below.
The Federal Deposit Insurance Corporation (FDIC) is an agency of the United States government that protects against the loss of insured deposits in the event of a bank failure. The FDIC insures deposits held in one insured bank separately from deposits in another separately chartered insured bank. FDIC insurance coverage is automatic. There is no need to apply for or request it.
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. FDIC insurance does not insure stocks, bonds, crypto assets, mutual fund shares, life insurance policies, annuities or municipal securities.
To assess whether your funds are fully protected, it is important to understand how coverage is determined.
FDIC coverage is calculated per person per account ownership category, so if you have deposits in different account categories at the same FDIC-insured bank, your insurance coverage may be more than $250,000. The chart below shows the limits of some of the most common ownership categories.
Standard FDIC Deposit Insurance Coverage Limits
| Account Ownership | Insurance Limits |
| Single Accounts (owned by one person) | $250,000 per owner |
| Joint Accounts (two or more persons) | $250,000 per co-owner |
| IRAs and certain other retirement accounts | $250,000 per owner |
| Revocable and/or Irrevocable Trust Accounts | $250,000 per owner per beneficiary up to five beneficiaries (more coverage is available with six or more beneficiaries subject to specific limitations and requirements) |
| Corporation, Partnership and Unincorporated Association Accounts | $250,000 per corporation, partnership or unincorporated association |
| Employee Benefit Plan Accounts | $250,000 for the non-contingent, ascertainable interest of each plan participant |
The coverage limits are combined for each person. For example, if you have an individual checking account, a joint checking account, and an individual IRA at one bank, the maximum coverage would total $750,000!
You can calculate your specific coverage using this handy tool.
For more information about FDIC coverage limits and requirements, visit fdic.gov.
