🎯 In 30 seconds: Coverage is $250,000 per depositor, per insured bank, per ownership category. Single, joint, retirement and trust accounts each count separately, so a couple can insure far more than $250,000 at one bank. Beyond that, people spread money across banks or use a deposit placement network. Check your setup with the FDIC’s EDIE tool.
The basic rule
FDIC insurance (banks) and NCUA share insurance (federal credit unions) both cover $250,000 per depositor, per institution, per ownership category. Coverage is per institution, not per branch or per account: three CDs in your name alone at one bank share one $250,000 limit. Some banks run more than one brand online, so check the legal bank name on BankFind.
Ownership categories
| Category | How it is covered |
|---|---|
| Single | $250,000 per owner, all single accounts at the bank added together |
| Joint (no beneficiaries) | $250,000 per co-owner for all joint accounts at the bank |
| Certain retirement (IRAs) | $250,000 per owner, regardless of beneficiaries |
| Trust (revocable, irrevocable, payable-on-death) | $250,000 per owner per distinct beneficiary, capped (see below) |
| Business | $250,000 per corporation, partnership or association, separate from the owners |
The trust account rule since April 1, 2024
The FDIC now treats all trust deposits together, including payable-on-death (POD) accounts. The formula is owners × distinct beneficiaries × $250,000, with a cap of $1,250,000 per owner for all trust accounts at one bank. In practice, one owner reaches the cap with five beneficiaries; naming a sixth adds nothing at that bank.
Worked example: a couple at one bank
| Account | Insured |
|---|---|
| Her savings, single | $250,000 |
| His savings, single | $250,000 |
| Joint checking and CDs | $500,000 |
| Her IRA CD | $250,000 |
| His IRA CD | $250,000 |
| Joint POD account naming 3 children (2 owners × 3 × $250,000) | $1,500,000 |
| Total | $3,000,000 |
This only works if the account records at the bank match the categories, including beneficiary names on the POD account.
Several banks, sweep networks and brokerage cash
- Several banks. The simplest route: each separately chartered insured bank gives a fresh $250,000 per category.
- Deposit placement networks. Some banks offer a reciprocal network (IntraFi’s ICS is a well-known example) that splits a large deposit into pieces under $250,000 at other network banks, while you deal with one bank. Coverage passes through only if records identify you as owner. You can usually see the list of receiving banks and exclude ones where you already hold money.
- Brokerage cash. A bank deposit sweep moves your cash into deposits at one or more program banks, where it can qualify for pass-through FDIC coverage. A money market fund sweep is not FDIC-insured at all; it is a security.
- SIPC is different. It covers up to $500,000 per customer, including $250,000 for cash, if a brokerage fails and assets are missing. It does not cover a fall in value.
- Apps. A nonbank fintech company is never FDIC-insured itself. Coverage applies only after it places your money in an insured bank with proper records, and not if the app company itself fails.
How to check your own coverage
- Confirm each bank is insured, and its legal name, on FDIC BankFind. For credit unions, use the NCUA locator.
- Enter your accounts at one bank into EDIE, the FDIC’s estimator. It shows the insured and uninsured amounts and prints a report.
- For credit unions, use the NCUA Share Insurance Estimator on MyCreditUnion.gov.
- For brokerage cash, ask which sweep option you are in and which banks hold it.
Compare rates across insured banks on Today’s Rates.