Federal Deposit Insurance Corporation (FDIC)

The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency that insures deposits in U.S. banks and savings associations to maintain public confidence and promote stability in the financial system. Created during the Great Depression, the FDIC prevents bank runs by guaranteeing depositor funds when an FDIC‑insured institution fails.

Key points

• Standard insurance limit: $250,000 per depositor, per FDIC‑insured bank, for each account ownership category.
• Typical covered accounts: checking, savings, money market deposit accounts, certificates of deposit (CDs), and certain retirement and trust accounts.
• Not covered: mutual funds, annuities, stocks, bonds, life insurance policies, and contents of safe‑deposit boxes.
• If you have deposits above the insurance limit at one institution, consider spreading funds across multiple FDIC‑insured banks or using different ownership categories to increase protection.

How FDIC insurance works

FDIC coverage is calculated by depositor, by ownership category, at each insured bank. Different ownership categories (for example, single accounts, joint accounts, certain retirement accounts, and trust accounts) are each insured up to the standard limit.

Examples:
* If you have $200,000 in a savings account and $100,000 in a CD at the same bank, $50,000 would be uninsured.
* If a married couple has $500,000 in a joint account and $250,000 in an eligible retirement account, the joint account is insured by each co‑owner’s share and the retirement account is insured separately, so the total could be fully covered.

The FDIC offers tools to help determine how much of your deposits are insured based on account ownership and balances.

What the FDIC covers

Covered deposit types generally include:
* Checking and savings accounts
* Money market deposit accounts
* Certificates of deposit (CDs)
* Individual Retirement Accounts (IRAs) and other retirement accounts, to the extent they are deposit accounts
* Joint accounts (coverage applies to each co‑owner’s share)
* Revocable and irrevocable trust accounts (subject to rules)
* Employee benefit plan accounts
* Business accounts of corporations, partnerships, LLCs, and unincorporated associations

Cashier’s checks and money orders issued by a failed bank are also covered.

What the FDIC does not cover

FDIC insurance does not protect against losses on:
* Mutual funds, stocks, bonds, or other securities
* Annuities and most life insurance policies
* Contents of safe‑deposit boxes
* Losses due to fraud, theft, or identity theft (those matters are handled by the bank or law enforcement)

Filing a claim or getting assistance

If a bank fails, depositors can file a claim with the FDIC as soon as the day after the failure. Claims and questions can be handled online or by phone at 1‑877‑ASKFDIC (1‑877‑275‑3342). The FDIC only insures deposits related to bank failures; it does not investigate or resolve identity theft or routine fraud claims.

Special considerations

• Credit unions are insured separately by the National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration (NCUA), which provides similar coverage limits.
• To maximize protection, depositors with funds exceeding the insurance limit should consider spreading deposits across multiple FDIC‑insured institutions or using different legal ownership categories that receive separate coverage.

Bottom line

FDIC insurance protects depositors’ funds at insured banks and savings associations up to the standard limit per depositor, per ownership category, per institution. Confirm that your bank is FDIC‑insured and review account ownership rules to ensure your deposits are fully protected.