FDIC insurance protects eligible deposits when an insured bank fails. The coverage is automatic, but the amount depends on the depositor, the bank and the account’s ownership category.
What is covered
Covered deposit products include checking accounts, savings accounts, money market deposit accounts and certificates of deposit at FDIC-insured banks.
Investments such as stocks, bonds, mutual funds and crypto assets are not FDIC-insured, even when they are purchased through a bank-related service.
How the limit works
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Accounts in the same category at the same bank are generally added together for coverage purposes.
Different legal ownership categories can receive separate coverage when all FDIC requirements are met. The FDIC’s EDIE calculator can help with individual situations.
What happens after a failure
The FDIC acts as insurer and receiver. It may transfer deposits to another insured bank or pay insured depositors directly.
Coverage includes principal and accrued interest through the date the bank closes, up to the applicable insurance limit.
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