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Banking

How FDIC Insurance Works, and the $250,000 Rule

Deposit insurance is one of the quiet reasons the banking system holds together. Understanding the basics helps you keep more of your money protected.

The standard coverage

The FDIC insures deposits up to $250,000 per depositor, per insured bank, per ownership category. That last phrase is the key: coverage is not simply one flat limit per person.

Ownership categories multiply coverage

Because coverage applies per ownership category — for example, single accounts, joint accounts, and certain business or trust accounts — a household can often protect well beyond $250,000 at a single bank by structuring accounts appropriately. Spreading funds across multiple insured banks can extend protection further.

What is covered

Deposit products such as checking, savings, money market deposit accounts, and CDs are covered. Investment products like stocks and mutual funds are not deposits and are not FDIC-insured.

Learn more in our Learning Hub, or explore accounts on the business banking page.

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