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How FDIC insurance works

What FDIC deposit insurance covers, the published $250,000 limit, what it does not cover, and how to check a fintech.

Last reviewed Oct 30, 2026. Written by New Bank Account.

The Federal Deposit Insurance Corporation is a United States government agency. It insures deposits at member banks if that bank fails. It does not insure every product a bank or an app sells next to the account.

The limit, in the FDIC's own terms

The FDIC publishes a standard maximum deposit insurance amount of $250,000 per depositor, per FDIC-insured bank, for each ownership category. That figure and the category rules are on the FDIC's site (understanding deposit insurance). Confirm it there if you are moving a balance large enough that the limit matters. We are citing the FDIC's published standard, not a number from a bank ad.

Coverage is not "per account." Two individual checking and savings accounts at the same bank, owned the same way, are added together. A joint account is a different ownership category, so it is counted on its own. The FDIC's estimator, linked from the pages above, is the tool for a balance that is not simple.

What is covered, and what is not

Deposit accounts at an FDIC-insured bank, such as checking and savings, are the usual category. FDIC insurance does not cover stocks, bonds, mutual funds, crypto, or annuities, even if you bought them at a bank. It also does not cover a fee the bank failed to waive or a bonus the bank failed to pay. It is about the deposit if the bank fails.

The FDIC's main deposit-insurance page is the index for the rest of the rules (FDIC).

Fintech accounts

If the app says "Banking services provided by" and names a bank, that bank is the one to look up, not the app company's brand. Insurance depends on whether the deposits are placed at an FDIC member and how they are held. A sentence in an ad is not the same as the account agreement. We quote the provider's sentence on the review when we have copied it. We do not invent a partner bank.

Read fintech vs bank before you treat an app as a bank. If you are parking a large savings balance, start from high-yield savers and then confirm insurance on the FDIC's site, not on our card.

A practical check

  1. Find the bank's legal name on the provider's site.
  2. Use the FDIC's tools to confirm that bank is insured.
  3. Add up balances in the same ownership category at that bank.
  4. If the provider says balances are spread across more than one bank, read how that sweep works in the agreement. Do not assume every dollar above $250,000 is covered.
  5. Keep the answer from the FDIC and the provider, not from an ad.

Questions people ask

How much does FDIC insurance cover?
The FDIC's standard maximum is $250,000 per depositor, per insured bank, for each ownership category. Confirm the current figure on the FDIC's site before you rely on it. Coverage rules change only when the FDIC changes them.
Does FDIC insurance cover stocks or crypto I bought at a bank?
No. FDIC insurance covers deposits if the bank fails. It does not cover stocks, bonds, mutual funds, crypto, or annuities, even if you bought them through a bank.
If I have two savings accounts at the same bank, do I get two limits?
Not if they are in the same ownership category. Two individual accounts at the same insured bank share one individual limit. Different ownership categories, such as a joint account, are counted separately.
Is a fintech account FDIC insured just because the app says so?
Only if the deposits are placed at an FDIC-insured bank and held in a way that qualifies. Read the sentence that names the bank, then look that bank up with the FDIC.

Sources

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