Account Types Covered by FDIC Insurance
Federal Deposit Insurance Corporation (FDIC) coverage depends not just on dollar amounts but on the specific category of account held at an insured institution. Understanding which account types qualify for protection — and how coverage limits apply within each category — determines whether depositors retain full access to funds after a bank failure. The standard insurance limit of $250,000 per depositor, per insured bank, per ownership category (FDIC Deposit Insurance Coverage) applies differently across checking accounts, savings products, retirement vehicles, trust arrangements, and business accounts. A full map of FDIC deposit insurance coverage limits clarifies how those per-category figures stack across multiple ownership types.
Definition and scope
FDIC deposit insurance covers deposit products held at FDIC-member institutions. A deposit product is any account where the bank owes the depositor a fixed obligation — the depositor cannot lose principal due to market movements. Coverage does not extend to investment products sold through a bank's brokerage arm, regardless of where the transaction occurs.
The categories of insured account types, as defined under the Federal Deposit Insurance Act (12 U.S.C. § 1813(l)), include:
- Checking accounts (demand deposit accounts)
- Savings accounts (including passbook and statement savings)
- Money market deposit accounts (MMDAs)
- Certificates of deposit (CDs)
- Cashier's checks and money orders issued by a bank
- Negotiable Order of Withdrawal (NOW) accounts
These products are categorically eligible. What determines the amount covered is the ownership category under which the account is held — single ownership, joint ownership, retirement, trust, or business. Each of those ownership categories receives its own $250,000 limit at the same institution. Detailed treatment of those categories appears on the FDIC ownership categories reference page.
How it works
When a covered bank fails, the FDIC steps in as receiver and begins paying depositors up to the applicable limit within each ownership category. Accounts at different insured institutions are counted separately — two checking accounts at two different FDIC-insured banks each receive the full $250,000 limit.
Within a single bank, the FDIC aggregates accounts by ownership type:
- Single/individual accounts: All accounts owned solely by one person are aggregated and covered up to $250,000 total.
- Joint accounts: Each co-owner receives up to $250,000 coverage on their share. A joint account with 2 owners is covered up to $500,000 total (FDIC Joint Ownership Rules).
- Retirement accounts (IRAs and similar): Self-directed traditional IRAs, Roth IRAs, SEP-IRAs, and SIMPLE IRAs held at one bank are combined and insured up to $250,000. More detail on these products is available on the FDIC retirement account coverage page.
- Revocable trust accounts: Coverage scales with the number of named beneficiaries. An account with 5 unique beneficiaries can receive up to $1,250,000 in coverage at a single bank (5 × $250,000), subject to FDIC rules (FDIC Trust Account Rules).
- Business accounts: Sole proprietorships, corporations, partnerships, and unincorporated associations each qualify as separate ownership categories. See FDIC business account coverage for the structural rules.
The FDIC's Electronic Deposit Insurance Estimator (EDIE) calculates coverage across ownership categories for a specific depositor profile.
Common scenarios
Scenario 1 — Single depositor, multiple product types at one bank
A depositor holds a checking account with $80,000, a savings account with $90,000, and a 12-month CD with $100,000 at the same FDIC-insured bank — all in single ownership. The FDIC aggregates all three: $270,000 total, which exceeds the $250,000 single-ownership limit by $20,000. That $20,000 is uninsured at that institution.
Scenario 2 — Joint account with two owners
Two individuals hold a joint MMDA with $480,000. Each owner's $240,000 share falls below $250,000, so the full $480,000 is covered. The FDIC joint account coverage page details co-ownership qualification requirements.
Scenario 3 — Revocable trust with multiple beneficiaries
A revocable trust account names 4 unique beneficiaries. Maximum coverage at one bank equals 4 × $250,000 = $1,000,000. Additional analysis of trust structures is available at FDIC trust account coverage.
Decision boundaries
The critical distinctions that determine whether an account type is covered:
| Account Feature | Covered? | Reason |
|---|---|---|
| Checking account at FDIC-insured bank | Yes | Deposit obligation |
| Certificate of deposit (CD) | Yes | Deposit obligation |
| Money market deposit account (MMDA) | Yes | Deposit obligation |
| Money market mutual fund (MMMF) | No | Securities product, not a deposit |
| Stocks or bonds held in a bank brokerage | No | Investment product |
| Annuities purchased through a bank | No | Insurance product |
| U.S. Treasury securities held in custody | No | Backed by U.S. government, not FDIC |
| Safe deposit box contents | No | No deposit obligation exists |
A full treatment of excluded products is maintained at what FDIC does not cover.
The decisive question is whether the bank holds a deposit obligation — a contractual promise to return principal — to the depositor. Accounts where the bank holds assets in custody rather than as deposits fall outside FDIC jurisdiction. Similarly, uninsured institutions cannot pass coverage to depositors; verifying an institution's insured status through the FDIC BankFind tool confirms eligibility before funds are placed.
An overview of the full scope of the FDIC's regulatory and insurance role is available on the site's main reference index.