What is FDIC insurance?

FDIC insurance protects the money you deposit at insured banks — up to $250,000 per depositor, per bank, per ownership category — if the bank fails. It's backed by the federal government and has never failed to pay a depositor since 1933.

The Federal Deposit Insurance Corporation (FDIC) is an independent U.S. government agency created by Congress in 1933 after widespread bank failures during the Great Depression. Its core function: if an FDIC-insured bank fails, the FDIC pays depositors back — up to the coverage limits — usually within a few business days. Deposits are not automatically insured at every institution; you must verify your bank carries FDIC coverage.

How much does FDIC insurance cover?

The standard insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. Ownership categories include single accounts, joint accounts, retirement accounts (IRAs), and certain trust accounts. A married couple with joint accounts may effectively have $500,000 in coverage at a single bank. The FDIC's Electronic Deposit Insurance Estimator (EDIE) lets you calculate your exact coverage for free.

Checking accounts, savings accounts, money market deposit accounts, and CDs are all covered.
Investments — stocks, bonds, mutual funds, and crypto — are NOT covered by FDIC insurance.
The $250,000 limit applies per depositor, per bank, per ownership category — not per account.
You can extend coverage by holding accounts at multiple FDIC-insured institutions.

How to check if your bank is FDIC-insured

Look for the FDIC logo at the branch or on the bank's website, or use the FDIC BankFind tool to search by name. Credit unions are not FDIC-insured — they have equivalent protection through the NCUA (National Credit Union Administration), also at $250,000 per depositor.

What happens when a bank fails?

The FDIC either transfers your insured deposits to another bank or mails you a check — typically within two business days of the bank's closure. Uninsured amounts (above the limits) may be partially recovered from the failed bank's assets, but there's no guarantee. Since 1933, no depositor has ever lost a cent of FDIC-insured funds. The FDIC explains the process in full.

What the FDIC says

The standard FDIC deposit insurance amount is $250,000 per depositor, per insured bank, per ownership category. — FDIC
Since FDIC insurance started in 1934, no depositor has ever lost a penny of FDIC-insured deposits. — FDIC
Investment products — including stocks, bonds, mutual funds, and crypto — are not deposits and are not insured by the FDIC. — FDIC

Key takeaways

FDIC insurance covers up to $250,000 per depositor, per bank, per ownership category.
Checking, savings, money market deposit accounts, and CDs are covered — investments are not.
Verify your bank is FDIC-insured using the FDIC BankFind tool before depositing.
Use EDIE (edie.fdic.gov) to see your exact coverage if you hold multiple accounts.
Credit unions have equivalent protection through the NCUA, not the FDIC.