Money in a US bank is protected up to a limit even if the bank fails — deposit insurance from the FDIC. The figure of $250,000 is well known, but the real scope only shows once you know what it is per. We read the FDIC page.
1. $250,000 — per depositor, per bank, per ownership category. All three attach to the limit together.
2. Only deposits are covered. Stocks, bonds, mutual funds, annuities and crypto assets are not, even if bought at a bank.
3. The bank must be FDIC-insured. The FDIC says no depositor has lost FDIC-insured funds since it was founded in 1933.
What is covered and what is not
| Category | FDIC list | In a word (our gloss) |
|---|---|---|
| Covered | Checking accounts, NOW accounts, savings accounts, money market deposit accounts (MMDAs), certificates of deposit (CDs), cashier's checks, money orders and other official bank items | A bank's deposits |
| Not covered | Stocks, bonds, mutual funds, annuities, life insurance, safe deposit boxes and their contents, US Treasury securities, municipal securities, crypto assets | Investments and insurance, even over a bank counter |
One pair of similar names confuses people — a money market deposit account (MMDA) is on the covered list, while mutual funds are on the other. A money market fund is a kind of mutual fund and so falls on the second list, on our reading — ask the bank which one you hold. Protection for brokerage accounts is separate from the FDIC and was not read this time. Tax on direct investing is in US ETFs direct vs Korea-listed.
The $250,000 splits three ways
The standard limit the FDIC states is $250,000 per depositor, per FDIC-insured bank, for each ownership category. Deposits in the same category at the same bank are added together.
| Situation (our example) | How it is counted | Amount not covered |
|---|---|---|
| Bank A, single name: checking $100,000 + savings $200,000 | Same bank, same category: $300,000 combined | $50,000 |
| Bank A $150,000 + Bank B $150,000 (single name) | Different banks: up to $250,000 at each | None |
| Bank A, single name $250,000 + IRA deposit at the same bank $250,000 | Different categories: up to $250,000 in each | None |
The table applies the FDIC's three principles (same category is combined; different categories are separate; different banks are separate) to our own figures. That several branches of one bank still count as one bank follows from the principle (our reading).
The seven ownership categories
- Single accounts
- Joint accounts
- Certain retirement accounts, such as IRAs
- Trust accounts
- Employee benefit plan accounts
- Corporation, partnership and unincorporated association accounts
- Government accounts
Category-level detail — how much each co-owner of a joint account is covered for, or limits by number of trust beneficiaries — is not on this page and is not stated here; the FDIC's calculator (EDIE) can work it out. The retirement category concerns an IRA held as a deposit; stocks and funds bought inside an IRA fall on the not-covered list above (our reading — the IRA itself is in US IRAs).
If a bank actually closes
The FDIC says bank failures are unlikely but possible, and that it acts quickly so that access to insured deposits is not interrupted. The Deposit Insurance Fund is built from assessments on insured banks and interest on Treasury investments, and is backed by the full faith and credit of the US government.
A specific deadline, such as payment within so many days, is not given as a number on this page. How amounts above the limit are handled was not read this time either.
Checklist
- ☐ Your bank is FDIC-insured (look it up in FDIC BankFind)
- ☐ All deposits at the same bank in the same name, added up, against $250,000
- ☐ Which products bought at the bank are not deposits (funds, annuities)
- ☐ If a large sum will sit there briefly (house sale proceeds, say), whether it exceeds the limit for a time
Questions that remain
What about credit unions?
This page covers banks only. How deposits at a credit union are protected was not read this time — check with your credit union.
Money in an online bank or fintech app?
The FDIC says cover applies only to deposits and only if the bank is FDIC-insured. Where the app company is not itself a bank, what matters is which bank actually holds the money and in whose name; that rule is not on this page and was not checked.
The account holding my down payment?
If it is a deposit, the same rule applies — just check the limit. Preparing for a mortgage is in the US mortgage guide.
Sources
- FDIC, Understanding Deposit Insurance — original (Last Updated: April 1, 2024; checked 7 October 2026). $250,000 per depositor, bank and ownership category; covered and non-covered products; the seven ownership categories; 1933; the Deposit Insurance Fund.
- Not read. Detailed limits by category (joint, trust), payment timing, treatment of amounts above the limit, credit unions, brokerage account protection, pass-through rules for fintech apps.
- Our arithmetic and reading. The three-example table ($50,000 and so on); the glosses on money market funds and investments inside an IRA.
Where to check further
- FDIC BankFind — look up insured banks.
- FDIC EDIE — calculate the cover on your deposits.
Written on 7 October 2026. The limit and lists are set out from the FDIC original; the examples and glosses are ours. This is not advice on your own situation.
