Overview
- FDIC insured means deposits at a member bank are protected by the Federal Deposit Insurance Corporation if the bank fails.
- The standard FDIC insured limit is $250,000 per depositor, per insured bank, per ownership category.x
- FDIC coverage applies to checking, savings, money market accounts, and CDs alike; it isn't limited to savings products.
- FDIC insurance protects your deposited principal and accrued interest in your deposit accounts up to applicable limits. It does not cover investment products such as stocks, bonds or mutual funds.
FDIC insured means deposits at an FDIC-insured bank are protected by the Federal Deposit Insurance Corporation (FDIC), an independent U.S. government agency, up to $250,000 per depositor, per insured bank, per account ownership category.x If an insured bank were to fail, the FDIC covers the deposited principal and any interest earned up to that limit, so your money is protected. Checking, savings, money market accounts and CDs at an FDIC-member bank are all covered the same way, up to the applicable limits.
What is the FDIC insurance limit?
The standard FDIC insurance limit is $250,000 per depositor, per insured bank, per account ownership category. This means the same person can hold well over $250,000 of FDIC-insured deposits across the banking system, by having funds held under different ownership categories or held at different insured banks.
Ownership categories include single accounts, joint accounts, certain retirement accounts and trust accounts, and the FDIC insures each category separately. For a qualifying joint account with two co-owners, for example, each co-owner's interest is insured up to $250,000, potentially providing up to $500,000 in total coverage. Opening different types of deposit accounts at the same bank doesn’t increase FDIC insurance coverage; accounts in the same ownership category are generally combined when coverage is calculated.
What is the FDIC limit per bank?
The FDIC deposit insurance coverage applies per depositor, per insured bank—not across your total deposits system-wide. If you hold $250,000 at one FDIC-member bank and another $250,000 at a separate FDIC-member bank, both balances may be fully covered; the standard limit applies separately at each insured bank. This is one reason some depositors spread large balances across multiple banks rather than concentrating everything in one place.
For clients who want expanded coverage without opening accounts at several different banks, a CDARS® CD is one structured option: it has the potential to provide access to FDIC insurance coverage on deposits up to $50 millionx by distributing funds across a network of FDIC-insured banks, while the client manages a single relationship.x This is generally most relevant for high-balance clients whose deposits exceed the standard $250,000 limit at a single bank.
Are checking accounts FDIC insured?
Yes, funds in checking accounts are protected the same way as funds in savings, money market deposit, and CD accounts, up to $250,000 per depositor, per insured bank, per ownership category.x FDIC insurance coverage isn't limited to savings-type products; it applies to any eligible deposit account at a member bank. Money in an EverBank Performance® Checking account, for instance, carries the same standard FDIC protection as money in EverBank's savings and CD products.
Some readers assume checking accounts are treated differently because they're used for everyday spending rather than long-term saving, but FDIC coverage is not based on how the account is used. What matters is that funds are in a deposit product at an FDIC-member institution and falls within the coverage limits.
What does FDIC insurance actually cover, and what doesn't it cover?
FDIC insurance protects the principal and any accrued interest placed in covered deposit products, like checking, savings, MMAs and CDs, up to the applicable limits in the event your bank fails. It does not protect money placed in non-deposit investment vehicles, such as stocks, bonds, and mutual funds, even if purchased through the bank, nor will it cover investment losses.
FDIC insurance doesn’t protect against changes to the interest rate or APY on a variable-rate deposit account. The protection is specifically against the loss of insured deposits if a bank fails, not about the rate those funds earn going forward.
How to confirm a bank is FDIC insured
Before opening any account, you can confirm that a bank is FDIC-insured using the FDIC’s Bank Find Suite. EverBank, N.A. is a Member FDIC, and you can readily check its coverage details.
If you're holding a balance close to or above the standard limit at a single bank, it's worth reviewing how your ownership categories are structured; individual, joint or otherwise, since that affects how much of your deposits are insured.
In conclusion
FDIC insurance can be an important factor in choosing where to keep your money, protecting eligible deposits, including principal and accrued interest, up to the applicable coverage limits. Whether you're evaluating a checking account, a savings account or a CD, confirming FDIC coverage should be your first step, not an afterthought.
Frequently asked questions
What does it mean for a bank account to be FDIC insured?
It means the account's deposits are protected by the Federal Deposit Insurance Corporation up to $250,000 per depositor, per insured bank, per ownership category, if the bank fails. This protection applies automatically at FDIC-insured banks and covers your deposited principal and accrued interest.
What is the standard FDIC deposit insurance limit?
The standard FDIC deposit insurance limit is $250,000 per depositor, per ownership category, per insured institution. This means all single accounts owned by the same person at the same FDIC-insured bank are added together and covered up to $250,000.x
Is the FDIC limit per bank or across all my accounts?
The limit applies per depositor, per insured bank, per ownership category, not across the entire banking system. If you hold deposits at two separate FDIC-insured banks, each balance is covered up to the standard limit independently.
Are checking accounts covered by FDIC insurance the same way as savings accounts?
Yes. FDIC coverage applies to checking, savings, money market accounts and CDs alike, as long as the funds are held at an FDIC-insured bank and fall within the applicable limits.
What happens to my money if my bank fails?
If an FDIC-insured bank fails, the FDIC covers your deposited principal and accrued interest up to the applicable limit, typically by transferring your insured deposits to another bank or issuing a payment directly. Deposits above the insured limit at a single bank, in a single ownership category, may not be fully covered.
Related terms
- FDIC insurance: Protection provided by the Federal Deposit Insurance Corporation (FDIC) covering deposits up to $250,000 per depositor, per insured bank, per ownership category, in the event of a bank failure.x
- Ownership category: A classification the FDIC uses (such as single, joint or trust accounts) to determine how deposit insurance is calculated per depositor, per bank.
- Joint account: A deposit account owned by two or more people, that meets FDIC joint-account requirements. Each co-owner’s combined interests in qualifying joint accounts at the same insured bank are insured up to $250,000.
- Member FDIC: A designation indicating a bank is insured by the Federal Deposit Insurance Corporation and subject to its coverage rules.
- Annual percentage yield (APY): The total interest earned on a deposit account in one year, expressed as a percentage and accounting for the effect of compound interest.
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