The FDIC is the federal agency that insures bank deposits up to $250,000 per depositor per insured bank, protecting business and personal account holders if a bank fails.
The Federal Deposit Insurance Corporation was created by the Banking Act of 1933 in response to thousands of bank failures during the Great Depression. It insures deposits at FDIC-member banks — the $250,000 limit applies per depositor, per institution, per ownership category. A business with $500,000 at a single bank has $250,000 insured and $250,000 at risk if the bank fails. For business banking, FDIC coverage applies to checking accounts, savings accounts, money market deposit accounts, and CDs. It does not cover investment products (stocks, bonds, mutual funds), insurance products, or crypto — even when sold through a bank. The FDIC also supervises and examines roughly 3,200 state-chartered banks that are not members of the Federal Reserve System. Its examinations focus on safety and soundness, consumer protection, and fair lending compliance. When evaluating a business bank account, verifying FDIC membership is the first step in assessing deposit safety. For businesses with large cash balances exceeding the $250K limit, strategies include spreading deposits across multiple FDIC-insured institutions, using IntraFi (formerly CDARS) network accounts, or using accounts with explicit sweep arrangements that distribute funds across multiple banks automatically.
If your bank is FDIC-member (look for the FDIC logo or verify at fdic.gov/bank/find/), yes — up to $250,000 per depositor per insured bank. Business accounts are insured separately from personal accounts at the same institution.
The FDIC typically arranges a purchase-and-assumption transaction where another bank takes over the failed institution — your accounts transfer seamlessly with minimal disruption. If no buyer is found, the FDIC pays insured deposits (up to $250K) directly, usually within a few business days.
Yes. Business checking, savings, money market deposit accounts, and CDs at FDIC-member banks are covered up to $250,000 per depositor per institution. Investment accounts, brokerage accounts, and crypto are not covered.
Use the FDIC BankFind tool at https://www.fdic.gov/bank/find/. Insured banks must display the official FDIC logo at branch locations and on their websites.