Most people never think about deposit insurance until a bank makes the news. It is worth knowing how it works while things are calm, because the rules are simple and the check takes minutes.
What is covered
- $250,000
- The standard limit
- 0
- Depositors lost insured money
- Days
- How soon insured funds are usually returned
Per depositor, per insured bank, per ownership category
When an FDIC-insured bank has failed, insured deposits are returned
Often within a couple of business days
Covered
- Checking and savings accounts
- Money market deposit accounts
- Certificates of deposit
- Cashier's checks and money orders sold by the bank
Not covered
- Stocks, bonds and mutual funds
- Crypto assets
- Insurance products and annuities
- The contents of a safe deposit box
How the limit works
The limit is per bank, not per account. If you have a checking and a savings account at the same bank in your own name, together they count toward one $250,000 limit. Different ownership categories, such as a single account, a joint account and certain retirement accounts, each have their own coverage at the same bank. Spreading large balances across several banks keeps every part of it insured.
Find the bank's legal name
Look at the footer of the website or the account agreement.
Check that it is an insured bank
Search for the name in the FDIC's BankFind tool or look for the official sign.
Look for the partner bank
An app that is not a bank should say which insured bank holds the funds.
Count your balances
Add up everything you have at that bank in each ownership category.
Credit unions and other accounts
Credit unions are insured by a separate federal fund with similar limits, and the notice is shown on their website or branches. Investment accounts are protected by different rules that address a broker's failure, not a market loss.
Insurance is a floor, not a plan. Keep your sign-in secure, enable alerts and review your statements monthly.
Common mistakes
Assuming an app is a bank. Look for the named partner bank in the terms.
Forgetting that the limit is shared. Your checking, savings and certificates at one bank in your own name count together.
Leaving a large sum in one account. Spread amounts above the limit across banks, or use the ownership categories that the rules allow.
Confusing insurance with investment protection. A falling market is not covered.
A yearly check is enough. When your balances change, or you open an account somewhere new, run through the four steps again and write down the result.
Questions people ask
Does insurance cover me if someone hacks my account?
No. Deposit insurance covers a bank failure, not fraud on your account. Fraud losses are handled by the bank's own rules and consumer laws, so keep your sign-in secure and watch your statements.
What about credit unions?
Credit unions are insured through a different federal fund with similar limits. Look for the insurance notice on the credit union's website or branch before you deposit.
Sources
Written from these pages and checked against them on October 5, 2026. Programs and rules change, so check the provider’s current terms before you decide.
General information, not financial, legal or travel advice. Your own card terms and the provider’s current rules always come first.