FDIC Insurance Limits & How To Insure Excess Deposits

Got more than $250,000 sitting in one bank account? Only the first $250,000 is protected by FDIC insurance. The rest is uninsured, which means you could lose it if your bank fails.

The good news: Protecting your excess deposits is straightforward once you understand how FDIC limits work. You don’t need to settle for uninsured deposits, and you don’t need to become a banking expert to fix it.

We’ll walk you through exactly how FDIC insurance works, what happens when you exceed the limits and five proven strategies to protect every dollar you have on deposit.

Ready to compare your banking options? See Bankrate’s best savings accounts and best checking accounts.

How FDIC insurance works: the $250,000 rule

The FDIC insures deposits up to $250,000 per depositor, per FDIC-insured bank, per ownership category. Let’s break down what that actually means:

• Per depositor: Your personal coverage limit at each bank
• Per bank: Each separately chartered bank gives you a new $250,000 limit (different branches of the same bank do not count as separate banks)
• Per ownership category: Single accounts, joint accounts, retirement accounts, trusts and business accounts each get their own $250,000 limit

What’s covered:

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit (CDs)
• Cashier’s checks and money orders

What’s NOT covered:

• Stocks, bonds, mutual funds (even if purchased through your bank)
• Cryptocurrency
• Safe deposit box contents
• Life insurance policies
• Annuities

Here’s an example of how these limits work: Let’s say you’re a single person with two accounts at the same bank. Account A has $250,000 in it, and account B has $100,000 in it. In this example, account A would be fully insured, and account be would not be insured, because you’ve already used your $250,000 single account limit.

To avoid this, you could simply restructure your accounts using different ownership categories. For example, you could move account B into a joint account or a business account. The ownership category structure is your friend here. Most people can protect $500,000-$1,000,000+ at a single bank just by using multiple ownership types strategically.

What happens if you exceed the $250,000 limit?

Let’s say you have $300,000 in a single savings account — $50,000 of that amount is uninsured. That $50,000 isn’t automatically gone if your bank fails — but it becomes an unsecured claim in the bank’s receivership process. You might get some or all of it back eventually, but there are no guarantees.

When Silicon Valley Bank and Signature Bank collapsed in 2023, the federal government made an extraordinary decision: They protected all depositors, even those with balances exceeding $250,000.

The government stepped in because these failures threatened systemic banking panic. But the FDIC and Treasury were crystal clear: This was an exception, not a new policy. Future bank failures will default back to the $250,000 standard limit.

Don’t count on the government bailing out uninsured deposits. The responsible move is to structure your accounts properly now.

5 ways to protect deposits over $250,000

1. Use bank networks (best for hands-off protection)

Bank networks like IntraFi (which operates ICS and CDARS programs) automatically distribute your deposits across multiple FDIC-insured banks in their network.

How it works:

• You deposit $2 million with your bank
• The bank network spreads it across 8 different partner banks at $250,000 each
• You get one statement, one relationship, full FDIC coverage
• Works with checking accounts, savings accounts, money market accounts, and CDs

In order to participate, your bank needs to be part of the network. Ask your banker if they offer IntraFi services.

Some banks offer their own multi-bank programs: SoFi Bank, for example, provides up to $3 million in FDIC coverage by automatically distributing deposits across partner banks. Always verify which partner banks are being used to avoid accidentally doubling up on the same institution.

2. Open accounts with different ownership categories (best for DIY protection)

This is the simplest way to multiply your FDIC coverage at a single bank. For example, a married couple could deposit $1 million at a single bank and have it all insured:

• Single account in spouse #1’s name: $250,000
• Single account in spouse #2’s name: $250,000
• Joint account owned by both spouses: $500,000

Other ownership categories that get separate $250,000 limits:

• Business accounts: Separate $250,000 limit from personal accounts

• Revocable trusts: Each beneficiary you name adds $250,000 in coverage

• IRAs and retirement accounts: Separate $250,000 limit from your personal accounts

3. Spread deposits across multiple banks (best for CD investors)

You can easily insure your excess deposits by opening accounts at separately chartered banks to expand your FDIC coverage if you’re willing to put in the time and stay organized enough to keep tabs on your accounts. Opening accounts at different branches of the same bank won’t increase your insurance.

This approach works particularly well for CD investors. You might, for example, open a $250,000 CD at an online bank offering a competitive rate for a one-year term, and another $250,000 CD at a different bank with a two-year term. Popular online banks such as Ally and Marcus by Goldman Sachs typically offer competitive rates alongside full FDIC coverage.

Keep in mind that different branches of the same bank count as one institution for FDIC purposes. Opening multiple accounts at different Chase branches, for example, won’t increase your coverage.

Compare the best CD rates.

4. Consider credit unions (best for higher rates and similar protection)

Credit unions offer equivalent federal insurance through the National Credit Union Administration (NCUA), which protects deposits up to $250,000 per member, per credit union, per ownership category.

Credit unions often offer higher rates on deposits than traditional banks, alongside generally lower fees and more personalized service. Some state-chartered credit unions offer additional private insurance above the federal limit. 

You need to qualify for membership (often based on geography, employer, or family connection), but these requirements are usually easy to meet.

Some offer additional private insurance above the $250,000 NCUA limit through Excess Share Insurance. This coverage is not backed by the U.S. government, so verify the details carefully. You can use the NCUA’s Share Insurance Estimator to calculate your coverage.

Compare the best credit union rates.

5. Use brokerage accounts with multi-bank sweep programs

Major brokerage firms like Fidelity or Charles Schwab offer bank account programs that automatically spread deposits across multiple FDIC-insured partner banks.

How it works: You deposit your money in a cash management account, the bank spreads it across partner banks (up to the $250,000 limit) and you manage everything under one login.

Brokerages also offer CDs from hundreds of banks nationwide, making it easy to diversify across institutions while potentially earning higher rates. You’re responsible for making sure your deposits don’t exceed $250,000 at any single underlying bank.

Some brokerage accounts also offer access to a money market fund as an alternative to a deposit account, but these funds are not covered under FDIC insurance. Money in these funds is usually invested in cash and short-term government securities, so they are generally considered to be safe investments. They often offer higher yields than traditional savings accounts and can be a good option for excess cash.

Bottom line

If you have more than $250,000 at any single bank, take 30 minutes to restructure your accounts. The five strategies above all work, and none of them are complicated:

1. Easiest: Use a bank network like IntraFi to automatically spread deposits across multiple banks
2. Simplest DIY: Open accounts in different ownership categories at your current bank
3. Best for rate shoppers: Open accounts at multiple banks or credit unions
4. Best for CD investors: Ladder CDs across multiple banks to maximize rates and coverage
5. Best for high net worth: Use a brokerage sweep program to protect millions automatically

The 2023 bank failures proved that even “too big to fail” assumptions can be wrong. Don’t count on government bailouts. Structure your accounts correctly, verify your coverage with EDIE, and sleep better knowing every dollar is protected.

Frequently asked questions about FDIC insurance limits

• Is the $250,000 FDIC limit per account or per person?
  

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  Per person, per bank, per ownership category. This means you can have multiple accounts at the same bank that each receive $250,000 in coverage IF they’re in different ownership categories (single, joint, trust, retirement, business).

  Three savings accounts in your name at one bank = $250,000 total coverage

  One savings account + one joint account with spouse at one bank = $750,000 total coverage ($250,000 single + $500,000 joint)

• How do I know if my bank is FDIC-insured?
  

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  Look for the FDIC logo on the bank’s website or at branch locations. You can also search the FDIC’s BankFind tool to verify a bank’s FDIC membership status.

  All online banks that are FDIC members provide the same protection as traditional brick-and-mortar banks.

• What if I have $500,000 at one bank — is half of it uninsured?
  

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  It depends on how the money is structured. If it’s all in one individual savings account, then yes — only $250,000 is insured. But if you split it into a $250,000 individual account and a $250,000 joint account (or any other ownership category), it’s all insured.

• Are online banks as safe as traditional banks?
  

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  Yes, as long as they’re FDIC-insured. Online banks like Ally, Marcus by Goldman Sachs and American Express offer the same $250,000 FDIC insurance as Chase, Bank of America or Wells Fargo.

  The FDIC doesn’t distinguish between online and traditional banks — the protection is identical.

• Can I lose money in an FDIC-insured account?
  

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  Your principal is safe up to the $250,000 limit per ownership category per bank. However:

  • Interest rates can change: Savings accounts have variable rates that can drop at any time (unlike CDs, which lock in rates for a set term)
  • Inflation can erode purchasing power: If your savings account earns 0.01% while inflation runs at 3%, your money loses real value over time

  But you won’t lose your deposited principal if the bank fails, as long as you’re within FDIC limits.

• What’s the difference between FDIC and SIPC insurance?
  

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  FDIC insurance protects bank deposits (savings accounts, checking accounts, CDs, money market accounts) up to $250,000 per depositor per bank.

  SIPC insurance protects brokerage accounts (stocks, bonds, mutual funds) up to $500,000 per customer per brokerage firm if the brokerage goes bankrupt. SIPC does NOT protect against investment losses — it only covers you if the brokerage itself fails and your securities go missing.