What Does FDIC Insurance Cover?
FDIC insurance covers deposit accounts: checking, savings, money market accounts, and certificates of deposit. It does not cover investments such as stocks, bonds, mutual funds, annuities, or cryptocurrency, even if purchased through an FDIC-insured bank. The coverage limit is $250,000 per depositor, per bank, per ownership category.
How Can You Get More Than $250,000 in FDIC Coverage?
You can increase your total coverage by holding accounts at multiple FDIC-insured banks, since the $250,000 limit applies per bank. You can also use different ownership categories at the same bank — individual accounts, joint accounts, revocable trust accounts, and retirement accounts each have their own $250,000 limit.
What Happens If Your Bank Fails?
The FDIC typically arranges for another bank to acquire the failed bank's deposits, meaning you may not even notice a disruption. If no acquirer is found, the FDIC pays depositors directly, usually within two business days. Insured deposits have never been lost since the FDIC was created in 1933.
Frequently asked questions
How do I know if my bank is FDIC insured?
Look for the FDIC logo at the bank or on its website. You can also verify any bank's insurance status using the FDIC's BankFind tool at fdic.gov. All national and most state-chartered banks carry FDIC insurance.
Are credit unions covered by FDIC insurance?
No. Credit unions are insured by the National Credit Union Administration (NCUA) through a separate fund called the National Credit Union Share Insurance Fund. The coverage amount and structure are similar — $250,000 per depositor per credit union.