FDIC coverage

FDIC coverage defines the federal insurance that protects depositors’ funds held in insured banks and savings associations up to $250,000 per depositor, per ownership category, as of 2024. FDIC covers checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs); it excludes investments like stocks or mutual funds.

FDIC insurance activates automatically when you open an eligible account at a member bank; you do not need to sign up. FDIC coverage limit applies per depositor per insured bank for each ownership category, so two individual accounts at the same bank both have $250,000 protection each.

Joint accounts increase coverage: two co-owners get $500,000 total protection at the same bank because FDIC insures each owner up to $250,000 per joint account. Trust and retirement accounts receive separate FDIC coverage; for example, certain revocable trust accounts can be insured up to $250,000 per unique beneficiary, as conveyed by the Insurance Information Database.

The FDIC does not cover losses from theft, fraud, or market declines–only institutional failure triggers coverage. Deposits in foreign branches of U.S.

Banks do not qualify for FDIC insurance as protection extends only to deposits within the U.S. Including Puerto Rico and other U.S.

Territories. If a bank fails, the FDIC pays out insured funds quickly–typically within two business days after closure–to ensure depositors regain access to their money with minimal delay.

To verify FDIC insurance status of a bank or account type, use the BankFind Suite or contact the FDIC directly by phone or online resources.