The FDIC insures deposits up to $250,000 — but that limit applies per depositor, per bank, and per ownership category, and it is the last of those three that decides whether a large balance is fully covered.
How it works
Every account you hold in the same ownership category at the same bank is added together and shares one $250,000 limit. Checking, savings, money market and CDs all count towards the same total. Hold money in a genuinely different category, though, and it gets its own separate limit.
Opening a second account at the same bank usually does not help
This is the misunderstanding that leaves people uninsured. Splitting $400,000 across two single-name accounts at one bank gives you $400,000 in one category against one $250,000 limit — $150,000 of it is uninsured. Moving the second $200,000 to a different bank, or holding it jointly, does work, because each creates a separate limit. A joint account with two co-owners is insured to $500,000 because each co-owner has their own $250,000.
What this does not include
This covers one ownership category at one bank. It does not total a household across several categories and several banks. It also does not cover investment products — stocks, bonds, mutual funds, annuities and crypto are never FDIC-insured, even when bought through an insured bank, and no ownership category changes that.
How to use this calculator
- Enter the total you hold at one bank in one ownership category.
- Pick the category. For a joint account, enter the number of co-owners; for a revocable trust, the number of unique beneficiaries.
- The result shows the coverage limit that applies, how much is insured, and how much is not.
Frequently asked questions
Does a second account at the same bank double my coverage?
Not if it is in the same ownership category. Two single-name accounts at one bank are added together against a single $250,000 limit. A second bank, or a different category such as a joint or retirement account, does create separate coverage.
How are trust accounts covered?
A revocable trust is insured at $250,000 per unique beneficiary, but since 1 April 2024 the total is capped at $1,250,000 per owner per bank across all trust accounts. Naming ten beneficiaries does not produce $2,500,000 of coverage — it stops at the cap.
Is the $250,000 limit per account or per person?
Per person, per bank, per category — not per account. The number of accounts you open makes no difference on its own.
What happens to the uninsured part if a bank fails?
It becomes a claim against the failed bank’s estate rather than a guaranteed payment. Depositors have often recovered some of it historically, but nothing about that is promised, and it can take a long time. The point of staying under the limit is to avoid the question entirely.
