FDIC insurance limits, explained

The FDIC^[1][2][3] says deposit insurance “covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category.” Three things follow:

• Per depositor: the limit is per person, not per account. A checking and a savings account in your name at one bank share one $250,000 limit.
• Per bank: the same person gets a separate $250,000 at a different FDIC-insured bank.
• Per ownership category: single, joint, retirement and trust accounts are insured separately. The FDIC’s example: two single accounts plus an IRA at one bank are insured up to $250,000 for the two single accounts combined and separately up to $250,000 for the IRA.

Each co-owner is insured up to $250,000 for their share of all joint accounts at the same bank, separately from their single accounts. To qualify, the FDIC^[1][2][3] says all co-owners must be living people (not a trust or company), all must have equal rights to withdraw, and each must have signed the signature card or be shown as a co-owner in the bank’s records. A couple can therefore have up to $500,000 in a joint account at one bank, plus $250,000 each in single accounts.

Since April 1, 2024, the FDIC^[1][2][3] treats revocable trusts (including payable-on-death and “in trust for” accounts) and irrevocable trusts under one rule: each owner is insured up to $250,000 per eligible beneficiary, up to five beneficiaries, so the most one owner can have insured in trust accounts at one bank is $1,250,000. A beneficiary counts only once per owner even if named on several accounts. The FDIC’s formula: owners × beneficiaries × $250,000, capped at $1,250,000 per owner.

Coverage follows the chartered bank, not the brand on the app. If two brands are divisions of one bank, deposits in both are added together. For example, CIT Bank’s page says deposits held under the names of First-Citizens Bank and Trust Company and all of its divisions (CIT Bank is one) “are not separately insured” and must be combined. When two insured banks merge, the FDIC^[1][2][3] says deposits from the acquired bank stay separately insured for at least six months after the merger, giving you time to restructure. Capital One’s page says Capital One or Discover Bank deposit accounts opened on or after May 18, 2025 are counted together immediately.

Many apps and brokerages place your cash at partner banks. The FDIC^[1][2][3] calls this “pass-through” coverage: deposits placed at an FDIC-insured bank through a third party can be insured as if you held them directly, but only if the relationship is disclosed in the bank’s account records, each owner’s identity and share can be determined from the bank’s or the third party’s records, and the underlying owners actually own the funds. The FDIC decides whether those requirements are met at the time the bank fails. The FDIC describes its protection as covering depositors of insured banks against loss “if an insured bank fails.” Pass-through deposits are also added to anything else you hold in the same category at that bank. If an app isn’t a bank, ask which bank holds your money and look that bank up on the FDIC’s BankFind tool.

Starting April 1, 2027, the FDIC says to look for its official digital sign on bank websites and apps.

The FDIC^[1][2][3] lists these as not covered, even if you buy them at a bank: stock investments, bond investments, mutual funds (including money market funds), annuities, life insurance policies, safe deposit boxes or their contents, U.S. Treasury bills, bonds or notes, municipal securities and crypto assets.

Covered deposits include checking, NOW, savings and money market deposit accounts, CDs, and cashier’s checks and money orders issued by a bank.

Credit unions aren’t covered by the FDIC^[1][2][3]. Federally insured credit unions are covered by the NCUA’s^[7] National Credit Union Share Insurance Fund, which is backed by the full faith and credit of the United States and insures up to $250,000 per member-owner in single accounts, with separate coverage for joint accounts, IRAs and trust accounts, similar to the FDIC’s categories.

• Anyone with less than $250,000 at one bank in their own name can skip the details: you’re within the basic limit as long as the bank is FDIC-insured.
• Business owners, trustees and estate administrators need more than this summary; use the FDIC’s^[1][2][3] “Your Insured Deposits” guide and EDIE, or ask the bank.
• Investors asking about brokerage accounts: FDIC insurance doesn’t apply to securities. See SIPC instead.