Are All Banks FDIC-Insured?

By Nancy Bilyeau. July 10, 2025 · 6 minute read

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Are All Banks FDIC-Insured?

The role of the Federal Deposit Insurance Corporation (FDIC) in protecting depositors’ bank accounts is important for everyone to understand.

Most banks are insured by the FDIC, but not all. Moreover, there are usually limits on how much can be covered in an individual person’s accounts and what kind of financial products are eligible for this insurance at all.

Read on to learn the policies and practices of the FDIC and how you can find out the status of your bank.

Key Points

  • The FDIC insures deposits to maintain confidence in the financial system.
  • Coverage is up to $250,000 per depositor, per bank, per ownership category.
  • Insurance coverage is automatic at FDIC-insured banks, and banks cover the cost of premiums.
  • The FDIC also examines banks for safety, soundness, and consumer protection.
  • Not all banks are FDIC-insured, so it’s important to check your bank’s status.

What FDIC Insurance Means

Having FDIC insurance means that the money you keep in your bank account is safe, up to certain limits, in the rare event that the bank goes out of business. The FDIC was created in 1933 in response to the many banks that went belly up during the Great Depression. The goal was to rebuild public trust in the U.S. banking systems by protecting deposits. And it has done just that: Since its inception, no depositor has lost a penny of insured funds as a result of a failure.[1]

So what exactly does FDIC insurance cover? Typically, it covers up to $250,000 per depositor, per insured bank, for each account ownership category, including principal and any accrued interest through the date of an insured bank’s closing. “Ownership category” refers to how you own the account, such as an individual account, joint account, trust account, or corporate account. If you open a bank account in just your name, that’s a single account. So if you have a savings account and checking account at the same bank and both are individual accounts, you have $250,000 in coverage across both accounts. If one of those accounts is a joint account, however, you have $500,000 in total coverage (the co-owner of your joint account also has $250,000 in coverage).

Some banks also offer expanded FDIC coverage by partnering with a network of banks to insure deposits.

What FDIC Insurance Does and Does Not Cover

These deposit accounts are generally covered by FDIC insurance up to the $250,000 limit:

  • Checking accounts
  • Savings accounts
  • Money market accounts
  • Certificates of deposit (CDs)

Important to note: The FDIC does not insure the money you invest in the following products, even if they were purchased from an FDIC-insured bank:

  • Stocks
  • Bonds
  • Mutual fund shares
  • Life insurance policies
  • Annuities
  • Municipal securities
  • Safe deposit boxes or their contents
  • U.S. Treasury bills, bonds, or notes (these are backed by the U.S. government)

How to Learn if Your Bank Is FDIC-Insured

One simple way to find out if your bank is insured by the FDIC, is to use the FDIC’s BankFind Tool. Bankfind also provides detailed information about every FDIC-insured institution, including its branch locations, official website, and current operating status.

Another way to find out if your bank is FDIC-insured is to look for the FDIC insurance logo on the bank’s website or an FDIC sign displayed in a local branch. Alternatively, you can ask a bank representative in person or by phone, or call the FDIC at 1-877-275-3342 and have an agent check if your bank is insured.[2]

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Recovering the Money if Your Bank Is FDIC-Insured

For insured deposits — those within the deposit insurance limits — the FDIC almost always pays depositors within a few business days of a closing, usually the next business day. They typically provide payment either by giving each depositor a new account at another insured bank in an amount equal to the insured balance of their account at the failed bank or by issuing a check for that amount. Note: the FDIC does not guarantee that if the funds move to a new bank, they will earn the same interest rate.

There are some situations where the payment process may take longer, according to the FDIC. These include deposits that both exceed $250,000 and are linked to trust documents, as well as accounts established by a third-party broker on behalf of other individuals.

Recommended: How to Keep Your Bank Account Safe Online

Understanding How the FDIC Works

You may wonder where the FDIC gets the money to cover lost accounts after a bank fails.

The FDIC says it receives no Congressional appropriations. It is primarily funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC also makes money through investing in assets like treasury bonds.

In addition to protecting your deposits, the FDIC also directly supervises and examines more than 5,000 banks and savings associations for “safety and soundness.” Banks can be chartered by the states or by the Office of the Comptroller of the Currency. Banks chartered by states also have the choice of whether to join the Federal Reserve System. The FDIC is the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System.

The FDIC also examines banks for compliance with consumer protection laws, including the Fair Credit Billing Act, the Fair Credit Reporting Act, the Truth in Lending Act, and the Fair Debt Collection Practices Act.

Recommended: How Are Financial Institutions Governed?

The Takeaway

The Federal Deposit Insurance Corporation (FDIC) was created by Congress in 1933 to maintain confidence in the American banking system and protect consumers if a financial institution fails. Most U.S. banks are covered by FDIC insurance, but the coverage typically only applies to accounts of $250,000 or less. Checking accounts, savings accounts, money market accounts, and certificates of deposit are covered. Should an insured bank fail, the FDIC will restore those funds up to the limit within a short time.

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FAQ

What is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent agency, created in 1933, with a mission to maintain confidence in the nation’s financial system. To keep that system stable, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; and resolves failed banks by selling their assets and settling their debts.

Is there a limit on how much the FDIC will insure?

Yes, The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, per insured bank, for each account ownership category. This means if you have multiple accounts at the same bank under different ownership categories (such as individual, joint, or corporate accounts), each category can be insured up to $250,000. However, if your combined balances in one category exceed the limit at a single bank, the excess is generally not insured.

To increase coverage, consider spreading funds across different FDIC-insured banks or ownership categories. Some banks also offer expanded FDIC coverage by partnering with a network of banks to insure deposits.

Am I supposed to take out FDIC insurance on my bank account?

No, depositors do not need to apply for Federal Deposit Insurance Corporation (FDIC) insurance. When you open a deposit account (like a checking or savings account) at an FDIC-insured bank, your funds are automatically protected up to $250,000 per depositor, per ownership category (such as an individual or joint account). Just make sure the bank is FDIC-insured and you’re covered — no separate application or fee is required for the insurance.

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