What Is FDIC Insurance? How Your Bank Deposits Are Protected

The FDIC (Federal Deposit Insurance Corporation) protects your money if your bank fails. It's one of the reasons keeping cash in a bank is fundamentally different from investing — but the $250,000 coverage limit has rules that surprise people with larger balances.

What FDIC Insurance Covers

• Checking and savings accounts
• Certificates of deposit (CDs)
• Money market deposit accounts (not investment money market funds)
• Coverage: up to $250,000 per depositor, per insured bank, per ownership category

What It Does NOT Cover

• Stocks, bonds, and mutual funds
• Cryptocurrency
• Safe deposit box contents
• Annuities (unless held as a bank deposit product)

How to Get More Than $250,000 Covered

• Open accounts at different FDIC-insured banks — each bank gets its own $250,000 limit
• Use different ownership categories: individual, joint, retirement, and trust accounts are each insured separately
• A joint account with a spouse is covered up to $500,000 ($250,000 per co-owner)

NCUA — The Credit Union Equivalent

Credit unions aren't FDIC-insured, but the National Credit Union Administration (NCUA) provides essentially identical $250,000 protection through the National Credit Union Share Insurance Fund.

How to Verify a Bank Is FDIC-Insured

• Look for the official FDIC sign at the branch or on the website
• Use the BankFind tool at fdic.gov
• Ask directly before opening an account