FDIC insurance protects eligible bank deposits when an insured bank fails. It does not turn every product offered by a bank into an insured asset.
Key Takeaways
- Coverage applies to deposits at insured banks: Checking, savings, money market deposit accounts, and CDs can qualify.
- Standard coverage is not simply $250,000 per account: Insurance is generally $250,000 per depositor, per insured bank, for each ownership category.
- Investments are not FDIC-insured: Stocks, bonds, mutual funds, annuities, life insurance, and crypto assets are outside FDIC deposit insurance.
- Credit unions use a different federal insurer: Federally insured credit unions receive coverage through the NCUA’s share insurance system.
What Does FDIC Insurance Cover?
FDIC insurance covers qualifying deposits held at an FDIC-insured bank. Common covered products include checking accounts, savings accounts, money market deposit accounts, certificates of deposit, and certain official bank items.
Coverage includes principal and accrued interest through the date an insured bank closes, subject to applicable insurance limits and ownership rules.
The $250,000 Standard Insurance Amount
Standard insurance is generally $250,000 per depositor, per insured bank, for each account ownership category. Accounts owned in the same category at the same bank are generally combined for insurance calculations.
Separate ownership categories can create additional coverage when their requirements are met. Joint accounts, certain retirement accounts, trust accounts, and business accounts have their own insurance rules.
What the FDIC Does Not Insure
| Generally covered deposits | Not FDIC-insured |
|---|---|
| Checking accounts | Stocks |
| Savings accounts | Bonds |
| Money market deposit accounts | Mutual funds |
| Certificates of deposit | Annuities and life insurance |
| Certain bank-issued official items | Crypto assets and safe-deposit-box contents |
Where a product is sold does not change what it is. A mutual fund purchased through an FDIC-insured bank remains an investment rather than an insured deposit.
What Happens When an Insured Bank Fails?
When an insured bank closes, the FDIC acts as insurer and usually works to provide depositors access to insured funds promptly. A common resolution is transferring deposits to another insured institution, although the exact process depends on the failure.
Amounts above the applicable insured limit can become claims against the failed bank’s receivership and are not guaranteed to be recovered in full.
FDIC vs. NCUA Insurance
FDIC coverage applies to eligible deposits at insured banks. Federally insured credit unions use the National Credit Union Share Insurance Fund administered by the National Credit Union Administration.
Both systems use a standard $250,000 amount in common ownership categories, but the institutions and governing rules are separate. Verify the actual institution rather than assuming every banking-style app is directly insured.
How to Check Whether a Bank Is FDIC-Insured
BankFind Suite can confirm whether a bank is insured and identify its legal institution. That step matters when a financial app or brand partners with another bank to hold customer deposits.
For everyday account shopping, the bank or credit union comparison explains how insurance fits alongside fees, rates, access, and customer service.
Frequently Asked Questions (FAQs)
Is FDIC insurance $250,000 per account?
Not generally. Coverage is applied per depositor, per insured bank, for each ownership category, so multiple accounts can be combined.
Are CDs FDIC-insured?
CDs held as qualifying deposits at an FDIC-insured bank can receive FDIC coverage subject to the normal limits and ownership rules.
Does the FDIC insure stocks or crypto?
No. FDIC deposit insurance covers qualifying bank deposits, not market investments or crypto assets.