Opening separate checking, savings and certificate of deposit (CD) accounts at one bank does not automatically give each account its own $250,000 insurance limit. The Federal Deposit Insurance Corporation (FDIC) applies that standard limit per depositor, per insured bank, for each ownership category.

Add accounts with the same ownership

For the single-account category, the FDIC adds together deposits owned by the same person at the same bank. This category generally means one owner with no beneficiaries; it also includes that person's sole-proprietorship account.

The FDIC's brochure gives this example for Marci Jones at one insured bank:

  • Money market deposit account: $15,000.
  • Savings: $20,000.
  • CD: $200,000.
  • Sole-proprietorship checking: $25,000.

The combined balance is $260,000. The brochure identifies $250,000 as insured and $10,000 as uninsured. Four deposit products did not create four separate limits.

Coverage includes principal and accrued interest through the bank's closing date, up to the applicable limit. Stocks and mutual funds are not FDIC-insured deposits, even when purchased at an insured bank.

Check the bank and ownership category

Accounts at separate branches of the same insured bank are not separately insured. Deposits at another separately chartered insured bank receive separate coverage.

Different legal ownership categories can qualify for separate coverage, but each category's requirements must be met. For example, naming a beneficiary to receive a deposit after the owner's death changes its treatment from a single account to a trust account. Joint, trust and retirement deposits need their applicable category rules; counting account numbers alone does not establish coverage.

Rearranging joint owners' names, or switching between “and” and “or” in the account title, does not increase joint-account insurance.

Use the FDIC's coverage tools

The official Your Insured Deposits brochure[1] links to BankFind for confirming whether a bank is FDIC-insured and to the Electronic Deposit Insurance Estimator (EDIE) for calculating coverage. Review the ownership rules that fit your accounts rather than applying the single-account example to every arrangement.

For questions about coverage, contact the FDIC at 1-877-275-3342.