If you keep your money in a bank, you want to know it’s safe—especially in the event of a bank failure. That’s where FDIC insurance comes in.
The Federal Deposit Insurance Corporation (FDIC) protects up to $250,000 per depositor, per insured bank, per ownership category. But not all accounts qualify for this protection.
So, what types of accounts are actually covered by FDIC insurance, and which ones aren’t? Let’s break it down.
✅ Types of Accounts Covered by FDIC Insurance
The FDIC insures deposit accounts—the types of accounts where you store money in a bank. Here’s a full list of what’s covered:
1. Checking Accounts 🏦💳
Checking accounts are fully covered up to the $250,000 limit per depositor, per insured bank.
✔ Example: If you have $100,000 in a checking account, it’s completely insured.
2. Savings Accounts 💰🏦
Your savings account is also fully covered under FDIC insurance, as long as it stays within the limit.
✔ Example: If you have $200,000 in savings, it’s safe.
🚨 Pro Tip: If you have both a checking and a savings account at the same bank under the same ownership type, the combined balance must stay below $250,000 to be fully insured.
3. Certificates of Deposit (CDs) 💿💲
CDs (time deposits) are insured just like checking and savings accounts.
✔ Example: If you invest $150,000 in a CD, it’s fully insured.
🚨 What if you have multiple CDs? If you have $200,000 in one CD and $100,000 in another CD at the same bank, $50,000 is uninsured because the total exceeds $250,000.
✔ Solution: Open CDs at different banks to get full FDIC coverage.
4. Money Market Deposit Accounts (MMDAs) 🏦📈
Not to be confused with money market mutual funds (which aren’t insured), money market deposit accounts (MMDAs) are covered under FDIC insurance.
✔ Example: If you have $200,000 in an MMDA, you’re fully covered.
🚨 Watch out for limits! If you have $200,000 in an MMDA and $100,000 in a checking account at the same bank, $50,000 would be uninsured.
5. Joint Accounts 👥💵
FDIC insurance covers each co-owner separately on joint accounts.
✔ Example: If you and your spouse have $500,000 in a joint account, it’s fully insured because each of you gets $250,000 in coverage.
🚨 Important: All account owners must have equal rights to withdraw money for the account to qualify as a joint account under FDIC rules.
6. Revocable and Irrevocable Trust Accounts 👨👩👧👦🏦
Trust accounts are insured differently based on the number of beneficiaries:
- If a revocable trust has one beneficiary, it gets $250,000 in coverage.
- If a revocable trust has four beneficiaries, it gets $1,000,000 in coverage ($250K per beneficiary).
✔ Example: A revocable trust with two children as beneficiaries is insured for $500,000.
🚨 For large trust accounts, consult a bank representative to ensure your funds are structured for maximum FDIC protection.
7. Business Accounts 🏢💼
Business accounts (checking, savings, and CDs) are insured separately from personal accounts.
✔ Example: If you have $250,000 in a business checking account and $250,000 in a personal savings account at the same bank, both are fully insured.
🚨 Important: Sole proprietors do not get separate coverage—personal and business deposits are combined under FDIC limits.
🚫 Types of Accounts NOT Covered by FDIC Insurance
FDIC insurance does NOT cover investments or non-deposit financial products, even if you bought them through a bank.
Here are some common examples NOT covered by the FDIC:
🔴 Stocks, Bonds, and Mutual Funds – These are market investments, not bank deposits.
🔴 Cryptocurrency – Even if you buy crypto through a bank, it’s not FDIC insured.
🔴 Life Insurance and Annuities – These are not considered deposit accounts.
🔴 Municipal Securities – Government bonds and securities are not FDIC protected.
🔴 Safe Deposit Box Contents – The items in your bank’s safe deposit box are not insured.
🔴 Money Market Mutual Funds – These are different from money market deposit accounts (MMDAs) and not covered.
✔ Tip: If you want investment protection, consider SIPC insurance, which covers brokerage accounts in case of a financial firm’s failure.
How to Maximize Your FDIC Insurance Coverage
Want to protect more than $250,000? Here are smart ways to maximize your FDIC insurance:
1️⃣ Spread your money across multiple banks – FDIC limits apply per bank, so using different banks increases your coverage.
2️⃣ Use joint accounts – Each co-owner gets $250,000 in coverage, doubling protection.
3️⃣ Open accounts in different ownership categories – Single, joint, business, and trust accounts are separately insured.
4️⃣ Consider IntraFi/CDARS networks – These services split large deposits among multiple banks while keeping all funds FDIC insured.
5️⃣ Use a revocable trust – Each beneficiary adds $250,000 in extra coverage.
Final Thoughts: Keep Your Money Safe with FDIC Insurance
FDIC insurance is one of the safest ways to protect your money, but not all accounts qualify.
Key Takeaways:
✅ FDIC insurance covers up to $250,000 per depositor, per insured bank, per account category.
✅ Checking, savings, CDs, and money market deposit accounts are covered.
✅ Business and trust accounts can qualify for additional coverage.
✅ Stocks, bonds, crypto, and life insurance are NOT covered.
✅ You can increase coverage by using multiple banks or structuring accounts strategically.