{"id":22597,"date":"2025-12-12T22:42:21","date_gmt":"2025-12-12T22:42:21","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=22597"},"modified":"2025-12-12T22:42:23","modified_gmt":"2025-12-12T22:42:23","slug":"fdic-insurance-what-it-is-how-it-works-and-limits","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=22597","title":{"rendered":"FDIC Insurance: What It Is, How It Works and Limits"},"content":{"rendered":"<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\">\n<div id=\"block_014fff371c7fffe77f410d58ecb47693\" class=\"key-takeaways sm:border-l-4 border-(--accent) sm:pl-8 my-8 relative\" style=\"--accent: var(--color-blue-medium)\">\n    <!-- htmlmin:ignore --><\/p>\n<h2 class=\"heading-4 mt-0 mb-4 text-crop-none max-sm:flex max-sm:items-center max-sm:gap-4\" id=\"key-takeaways\" data-position=\"0\" data-beam-element-viewed=\"\" data-id=\"br-h2-0-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Key takeaways\" data-outcome=\"\">\n    <span class=\"shrink-0\">Key takeaways<\/span><br \/>\n        <span class=\"max-sm:h-0.5 max-sm:w-full max-sm:w-full max-sm:bg-(--accent) max-sm:rounded-full max-sm:block\"\/><br \/>\n    <\/h2>\n<p>    <!-- htmlmin:ignore --><\/p>\n<ul class=\"flex flex-col text-gray-700 mb-0 gap-2 list-disc\">\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            Deposits are insured for up to $250,000 per depositor, per FDIC-insured bank, per ownership category.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            FDIC insurance covers traditional bank deposit products such as checking and savings accounts.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            In the event of a bank failure, the FDIC will either transfer funds to another insured bank or issue a check.\n                                                <\/li>\n<\/ul>\n<\/div>\n<p>The Federal Deposit Insurance Corp. (FDIC) is a U.S. government agency that insures deposits at member banks <u>in case of a bank failure<\/u>. And while that\u2019s not a likely event, it does happen.<\/p>\n<p>Here\u2019s what you need to know about how your money is backed by the government through the FDIC, how the insurance works, and the limits of FDIC insurance.<\/p>\n<h2 id=\"What-is-FDIC-insurance\" data-position=\"1\" data-beam-element-viewed=\"\" data-id=\"br-h2-1-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"What is FDIC insurance?\" data-outcome=\"\"><strong>What is FDIC insurance?<\/strong><\/h2>\n<p>FDIC insurance is the guarantee that your money, up to the established guidelines, is protected and will be returned to you should your bank fail.\u00a0<\/p>\n<p>The FDIC was created in 1933 during the Great Depression to restore and maintain public confidence in the banking system. This came on the heels of many banks failing following the stock market crash of 1929 and people\u2019s money vanishing along with the banks.\u00a0<\/p>\n<p>Now when banks fail, the FDIC steps in to give depositors back their money.<\/p>\n<p>\u201cBank failures are unusual,\u201d says Mark Hamrick, Bankrate\u2019s senior economic analyst and Washington bureau chief. \u201cBut when they happen, affecting covered institutions, FDIC coverage is important.\u201d<\/p>\n<h2 id=\"FDIC-insurance-limit\" data-position=\"2\" data-beam-element-viewed=\"\" data-id=\"br-h2-2-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"FDIC insurance limit\" data-outcome=\"\"><strong>FDIC insurance limit<\/strong><\/h2>\n<p>The FDIC insures up to $250,000 per depositor, per FDIC-insured bank, per ownership category (such as single or joint accounts). This means your money is safe if your FDIC-member bank fails, as long as your balances are within the limits.<\/p>\n<h2 id=\"FDIC-insurance-covered-and-what-isnt\" data-position=\"3\" data-beam-element-viewed=\"\" data-id=\"br-h2-3-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"FDIC insurance: What\u2019s covered and what isn\u2019t\" data-outcome=\"\"><strong>FDIC insurance: What\u2019s covered and what isn\u2019t<\/strong><\/h2>\n<h3>What FDIC insurance covers<\/h3>\n<p>FDIC insurance covers traditional bank deposit products, including <u>checking accounts<\/u>, savings accounts, certificates of deposit (CDs) and <u>money market accounts<\/u>.<\/p>\n<p>The FDIC classifies deposit accounts into several ownership categories. These include:<\/p>\n<ul class=\"wp-block-list\">\n<li>Single accounts<\/li>\n<li><u>Joint accounts<\/u><\/li>\n<li>Corporate accounts<\/li>\n<li>Certain retirement accounts<\/li>\n<\/ul>\n<p>So this means that an individual account is insured separately from a joint account, since they\u2019re distinct ownership categories. If you have more than $250,000 in accounts that fall under the same ownership category at one bank, anything over that amount isn\u2019t insured.<\/p>\n<div class=\"w-full overflow-x-auto\">\n<table class=\"wp-block-table has-fixed-layout wrapped\">\n<tbody>\n<tr>\n<td><strong>DIFFERENT TYPES OF ACCOUNT OWNERSHIP<\/strong><\/td>\n<td><strong>INSURED<\/strong><\/td>\n<td><strong>UNINSURED<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Account holder A (single ownership)<br \/><strong>Savings<\/strong>: $50,000<br \/><strong>CD<\/strong>: $250,000<\/td>\n<td>$250,000<\/td>\n<td>$50,000<\/td>\n<\/tr>\n<tr>\n<td>Account holder A and B (joint ownership)<br \/><strong>Savings<\/strong>: $150,000<br \/><strong>CD<\/strong>: $325,000<br \/><em>Note: these are the only joint accounts A and B have at this FDIC-insured bank.<\/em>\n<\/td>\n<td>$500,000<\/td>\n<td>$0<\/td>\n<\/tr>\n<tr>\n<td>Account holder C (Trust with up to 5 beneficiaries insured for up to $250,000 each)<br \/><strong>Beneficiary 1<\/strong>: $250,000<br \/><strong>Beneficiary 2<\/strong>: $250,000<br \/><strong>Beneficiary 3<\/strong>: $250,000<br \/><strong>Beneficiary 4<\/strong>: $250,000<br \/><strong>Beneficiary 5<\/strong>: $250,000<\/td>\n<td>$1.25 million<\/td>\n<td>$0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3><strong>What the FDIC doesn\u2019t cover<\/strong><\/h3>\n<p>The FDIC doesn\u2019t insure investments. Here are some items that aren\u2019t bank deposits and aren\u2019t covered by FDIC insurance, even if they\u2019re in an account with a bank\u2019s name on it or if you bought one at a bank:<\/p>\n<p>The FDIC also doesn\u2019t cover the contents of your <u>safe-deposit box<\/u> either.<\/p>\n<h2 id=\"How-to-insure-more\" data-position=\"4\" data-beam-element-viewed=\"\" data-id=\"br-h2-4-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"How to insure more than $250,000\" data-outcome=\"\">How to insure more than $250,000<\/h2>\n<p>If you have less than $250,000 at a federally insured bank, all of your money is protected. Once you exceed $250,000 at one federally insured bank, you can safeguard your money and <u>maximize insurance protection<\/u> with a little strategic organization.\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong>Use multiple banks. <\/strong>Spreading your money between different FDIC-insured banks is one way to keep your cash protected.\u00a0<\/li>\n<li>\n<strong>Keep your cash in different account categories<\/strong>. Joint account ownership offers more protection if your federally insured bank fails than single-account ownership, because each account owner is insured for up to $250,000. So, if a couple had $500,000 in a joint savings account, all their money would be insured by the FDIC \u2014 if they didn\u2019t have any other money in a joint account at that bank.\u00a0<\/li>\n<li>\n<strong>Consider a trust.<\/strong> A trust is a legal vehicle that enables a third party \u2014 a trustee \u2014 to hold and direct assets in a trust fund on behalf of a beneficiary. Trusts \u00a0afford more protection because as many as five beneficiaries are insurable for up to $250,000 each.<\/li>\n<\/ul>\n<h2 id=\"How-to-calculate-if-your-funds-are-all-FDIC-insured\" data-position=\"5\" data-beam-element-viewed=\"\" data-id=\"br-h2-5-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"How to calculate if your funds are all FDIC insured\" data-outcome=\"\">How to calculate if your funds are all FDIC insured<\/h2>\n<p>If you\u2019re not sure whether all your deposits are FDIC-insured, talk to a bank representative or use the FDIC\u2019s <u>Electronic Deposit Insurance Estimator (EDIE)<\/u> and enter information about your accounts.<\/p>\n<h2 id=\"How-to-check-if-your-bank-is-insured-by-the-FDIC\" data-position=\"6\" data-beam-element-viewed=\"\" data-id=\"br-h2-6-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"How to check if your bank is insured by the FDIC\" data-outcome=\"\">How to check if your bank is insured by the FDIC<\/h2>\n<p>To make sure your bank is insured by the FDIC before you put your money there, you can look up the bank\u2019s name in FDIC\u2019s BankFind Suite tool.<\/p>\n<h2 id=\"How-the-FDIC-pays-you-back-after-a-bank-fails\" data-position=\"7\" data-beam-element-viewed=\"\" data-id=\"br-h2-7-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"How the FDIC pays you back after a bank fails\" data-outcome=\"\"><strong>How the FDIC pays you back after a bank fails<\/strong><\/h2>\n<p>Depositors don\u2019t need to file insurance claims to recoup their deposits. Nor do they need to apply for deposit insurance when they open up a bank account at an FDIC-insured institution.<\/p>\n<p>If your bank fails, the FDIC will pay out the insured amount by either setting up a new account at the bank that acquired the failed bank or issuing you a check within a few days \u2014 so you should have access to your money pretty quickly.<\/p>\n<p>If you don\u2019t like the new bank that acquired your account, you can always withdraw your funds and find a new bank on your own.<\/p>\n<h3>What happens if you had uninsured funds?<\/h3>\n<p>It can take a few years to recover deposits that exceed the insurance limit. As the FDIC sells off a failed bank\u2019s assets, it typically issues periodic payments to depositors. Funds that exceed insurance limits are repaid on a cents-on-the-dollar basis.<\/p>\n<p>Silicon Valley Bank, for example, didn\u2019t have insurance coverage for more than 94 percent of its total deposits as of the end of 2022, according to the Federal Reserve. The FDIC announced it would pay back uninsured deposits in receivership certificates and dividend payments as it sells the closed bank\u2019s assets.<\/p>\n<section class=\"editorial-insight-box --insight-box +mg-vertical-md\" data-template=\"insight_box\">\n<div class=\"card-body border-l-4 border-blue-800\">\n<div class=\"content-wrapper\">\n<p>\n                    Did you know?\n                <\/p>\n<div class=\"content wysiwyg wysiwyg--flush\">\n<p>Some of the largest bank failures in U.S. history have happened in the past few years. It\u2019s common for there to be at least one bank failure in a year. This is why it\u2019s always smart to keep your money at an FDIC bank and within the deposit insurance guidelines.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<h2 id=\"How-FDIC-insurance-works-at-fintechs\" data-position=\"8\" data-beam-element-viewed=\"\" data-id=\"br-h2-8-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"How FDIC insurance works at fintechs\" data-outcome=\"\">How FDIC insurance works at fintechs<\/h2>\n<p>If you\u2019re thinking of banking with a financial technology firm, such as Cash App or Chime, you should understand that FDIC insurance works differently at those institutions than it does at chartered banks and comes with more risks.<\/p>\n<p>That\u2019s because fintechs provide what\u2019s called pass-through FDIC insurance. They partner with FDIC-insured banks, and technically it\u2019s the partner bank that holds your money and protects it. But the protection only kicks in if the partner bank fails, <em>not <\/em>if the neobank fails. Plus, the fintech would have to meet a few other requirements for the insurance to work, such as maintaining meticulous records.\u00a0<\/p>\n<p>If a neobank fails, your money is not necessarily lost. You may be able to get it back through bankruptcy proceedings, but it will take longer than a standard bank failure the FDIC protects. And it\u2019s not guaranteed.<\/p>\n<h2 data-position=\"9\" data-beam-element-viewed=\"\" data-id=\"br-h2-9-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"FAQs about FDIC insurance\" data-outcome=\"\"><strong>FAQs about FDIC insurance<\/strong><\/h2>\n<ul class=\"Accordion w-full align\">\n<li x-id=\"['panel-which-institutions-are-covered-by-fdic-insurance', 'heading-which-institutions-are-covered-by-fdic-insurance']\" x-data=\"{ expanded: 0 }\" class=\"Accordion-item\">\n<button class=\"Accordion-titleContainer py-4 px-3 sm:px-6 group sm:py-6\" type=\"button\" :id=\"$id('heading-which-institutions-are-covered-by-fdic-insurance')\" :aria-controls=\"$id('panel-which-institutions-are-covered-by-fdic-insurance')\" :aria-expanded=\"expanded ? true : false\" x-on:click=\"expanded = !expanded\" :data-outcome=\"expanded ? 'open_accordion' : 'close_accordion'\"><!-- htmlmin:ignore --><\/p>\n<h3 class=\"Accordion-title my-0 mr-2 md:flex-1\">\n    Which institutions are covered by FDIC insurance?<br \/>\n    <\/h3>\n<p><!-- htmlmin:ignore --><span class=\"Accordion-icon Icon mb-0 block leading-none Icon--sm icon-base-blue-600\" aria-hidden=\"true\"><default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Caret Down Icon<\/default:title><br \/>\n<default:path d=\"M12 17.152c-.33 0-.675-.131-.94-.378L3.384 9.09a1.32 1.32 0 0 1 0-1.86c.51-.51 1.351-.51 1.862 0L12 13.977l6.755-6.747c.51-.51 1.351-.51 1.862 0 .51.51.51 1.35 0 1.86l-7.694 7.684a1.295 1.295 0 0 1-.94.378H12Z\" class=\"icon-base\"\/><\/default:svg><\/span><\/button><\/p>\n<div class=\"Accordion-contentWrapper\" :id=\"$id('panel-which-institutions-are-covered-by-fdic-insurance')\" :aria-labelledby=\"$id('heading-which-institutions-are-covered-by-fdic-insurance')\" x-show=\"expanded\" x-collapse=\"\" role=\"region\" style=\"height: 0; overflow: hidden; display: none;\">\n<div class=\"Accordion-content text-gray-700 px-3 pb-4 sm:px-6 sm:pb-6\">\n<p>Most banks, including online-only banks, offer deposit customers FDIC insurance.<\/p>\n<p>It\u2019s rare for a bank not to have FDIC insurance, but there are exceptions. Bank of North Dakota, for example, is not FDIC-insured. Instead, it is backed by the full faith and credit of the State of North Dakota.<\/p>\n<p>Credit unions are regulated differently from banks and have their own federal deposit insurance through the National Credit Union Share Insurance Fund (NCUSIF), which is administered by the National Credit Union Administration (NCUA). The insurance is similar to what the FDIC provides, with a $250,000 cap for each account and owner.<\/p>\n<\/div>\n<\/div>\n<\/li>\n<li x-id=\"['panel-do-i-need-deposit-insurance', 'heading-do-i-need-deposit-insurance']\" x-data=\"{ expanded: 0 }\" class=\"Accordion-item\">\n<button class=\"Accordion-titleContainer py-4 px-3 sm:px-6 group sm:py-6\" type=\"button\" :id=\"$id('heading-do-i-need-deposit-insurance')\" :aria-controls=\"$id('panel-do-i-need-deposit-insurance')\" :aria-expanded=\"expanded ? true : false\" x-on:click=\"expanded = !expanded\" :data-outcome=\"expanded ? 'open_accordion' : 'close_accordion'\"><!-- htmlmin:ignore --><\/p>\n<h3 class=\"Accordion-title my-0 mr-2 md:flex-1\">\n    Do I need deposit insurance?<br \/>\n    <\/h3>\n<p><!-- htmlmin:ignore --><span class=\"Accordion-icon Icon mb-0 block leading-none Icon--sm icon-base-blue-600\" aria-hidden=\"true\"><default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Caret Down Icon<\/default:title><br \/>\n<default:path d=\"M12 17.152c-.33 0-.675-.131-.94-.378L3.384 9.09a1.32 1.32 0 0 1 0-1.86c.51-.51 1.351-.51 1.862 0L12 13.977l6.755-6.747c.51-.51 1.351-.51 1.862 0 .51.51.51 1.35 0 1.86l-7.694 7.684a1.295 1.295 0 0 1-.94.378H12Z\" class=\"icon-base\"\/><\/default:svg><\/span><\/button><\/p>\n<div class=\"Accordion-contentWrapper\" :id=\"$id('panel-do-i-need-deposit-insurance')\" :aria-labelledby=\"$id('heading-do-i-need-deposit-insurance')\" x-show=\"expanded\" x-collapse=\"\" role=\"region\" style=\"height: 0; overflow: hidden; display: none;\">\n<div class=\"Accordion-content text-gray-700 px-3 pb-4 sm:px-6 sm:pb-6\">\n<p>It\u2019s best to make sure your deposits are at an FDIC-insured institution and don\u2019t exceed the FDIC limits, so you can readily access your insured funds if your bank fails.<\/p>\n<p>FDIC insurance is not something you purchase. It\u2019s automatic and free for any\u00a0 eligible account opened at an FDIC-insured bank.<\/p>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<h2 data-position=\"10\" data-beam-element-viewed=\"\" data-id=\"br-h2-10-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Bottom line\" data-outcome=\"\"><strong>Bottom line<\/strong><\/h2>\n<p>In the event of a bank failure, FDIC insurance provides crucial protection for consumers\u2019 deposits. With up to $250,000 in coverage per depositor, per FDIC-insured bank, per ownership category, it\u2019s important for individuals and businesses to understand the limits and guidelines of this insurance.<\/p>\n<p>While most banks, including online-only banks, offer FDIC insurance, it\u2019s still important to confirm this coverage and make sure all deposits fall within the insured limits. By spreading deposits across different banks or ownership categories, individuals can maximize their insurance protection. In the unlikely event of a bank failure, the FDIC will pay depositors back by transferring their funds to another insured bank or issuing a check. It\u2019s always best to stay within the insurance limits to ensure quick and easy access to insured funds.<\/p>\n<div class=\"HelpfulCTA mx-auto flex flex-col items-center gap-6 my-6 py-12 text-base border-y border-gray-200\" data-helpful-cta=\"\" data-beam-element-viewed=\"\" id=\"did-you-find-this-helpful\" data-type=\"cta\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Did you find this page helpful?\">\n<div class=\"HelpfulCTA-initial w-full flex flex-col items-center gap-4\" data-cta-initial=\"\">\n<div class=\"HelpfulCTA-question text-lg font-bold text-center text-gray-900\">\n            Did you find this page helpful?<\/p>\n<div id=\"x0LNZ2lB38\" class=\"hidden\">\n<div class=\"wysiwyg wysiwyg--sm wysiwyg--flush max-w-xs\">\n<p class=\"mb-6 text-base\">\n                            <strong class=\"block font-bold text-gray-900\">Why we ask for feedback<\/strong><br \/>\n                            Your feedback helps us improve our content and services. It takes less than a minute to<br \/>\n                            complete.\n                        <\/p>\n<p>Your responses are anonymous and will only be used for improving our website.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Help us improve our content<\/p>\n<div class=\"HelpfulCTA-actions flex gap-4 mt-2\">\n            <button type=\"button\" class=\"HelpfulCTA-btn HelpfulCTA-btn--yes border border-2 border-blue-600 text-blue-600 rounded px-6 py-2 transition font-semibold flex items-center gap-2 hover:bg-blue-50\" data-cta-yes=\"\" data-beam-element-clicked=\"\" id=\"did-you-find-this-helpful-yes\" data-type=\"button\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Yes\" data-outcome=\"response submitted\"><br \/>\n                <span class=\"Icon\"><default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Thumbs Up Icon<\/default:title><default:path d=\"M13.165 2.175c.322 0 .57.022.774.065.796.161 1.43.624 1.85 1.345.71 1.216.722 3.067.023 5.499h.516c2.28 0 3.422 0 4.337.548a3.844 3.844 0 0 1 1.721 2.25c.29 1.032 0 2.13-.592 4.336l-.516 1.926c-.312 1.151-.484 1.786-.882 2.324a3.368 3.368 0 0 1-1.442 1.098c-.625.247-1.28.248-2.475.248l-.021.01h-4.595c-.42 0-.636 0-.84-.032a4.19 4.19 0 0 1-.635-.15c-.204-.065-.387-.162-.763-.355l-1.69-.856c-.014.034-.026.069-.043.102a2.334 2.334 0 0 1-1.044 1.044c-.495.247-1.012.248-1.948.248h-.161c-.936 0-1.453 0-1.947-.248a2.333 2.333 0 0 1-1.044-1.044C1.5 20.038 1.5 19.52 1.5 18.585v-7.683c0-.936 0-1.452.248-1.947A2.387 2.387 0 0 1 2.792 7.91c.494-.248 1.01-.247 1.947-.247h.16c.937 0 1.454 0 1.95.247.353.177.653.44.875.763.64-.606 1.788-2.184 3.31-5.142.183-.366.312-.603.538-.819.193-.193.462-.355.72-.441.302-.097.539-.097.873-.097ZM4.739 9.288c-.624 0-1.076 0-1.227.076a.721.721 0 0 0-.323.322c-.075.15-.075.603-.075 1.216v7.683c0 .624 0 1.076.075 1.227.065.14.183.248.323.323.151.075.603.075 1.227.075h.16c.625 0 1.078 0 1.228-.075a.722.722 0 0 0 .323-.323c.075-.15.075-.603.075-1.227v-7.683c0-.624 0-1.065-.075-1.227a.672.672 0 0 0-.323-.322c-.15-.075-.603-.076-1.227-.076h-.161v.01ZM13.057 3.8c-.14 0-.226 0-.259.011-.032 0-.086.043-.107.064a2.98 2.98 0 0 0-.226.399c-2.187 4.272-3.53 5.647-4.33 6.092.003.162.004.34.004.536v7.82l2.217 1.122c.28.14.42.216.56.27.107.032.214.064.332.075.151.021.314.021.626.021h4.594c1.022 0 1.539 0 1.862-.129a1.84 1.84 0 0 0 .763-.58c.215-.28.355-.808.613-1.765l.517-1.927c.495-1.85.775-2.873.603-3.475a2.309 2.309 0 0 0-1-1.313c-.538-.323-1.594-.323-3.51-.323h-1.129c-.226 0-.473 0-.72-.15a1.087 1.087 0 0 1-.464-.614c-.075-.301 0-.528.076-.754.957-2.97.603-4.26.301-4.777-.183-.312-.44-.506-.774-.57-.14-.033-.377-.033-.549-.033Z\" class=\"icon-base\"\/><\/default:svg><\/span> <span class=\"text-base leading-4\">Yes<\/span><br \/>\n            <\/button><br \/>\n            <button type=\"button\" class=\"HelpfulCTA-btn HelpfulCTA-btn--no border-2 border-blue-600 text-blue-600 rounded px-6 py-2 transition font-semibold flex items-center gap-2 hover:bg-blue-50\" data-cta-no=\"\" data-beam-element-clicked=\"\" id=\"did-you-find-this-helpful-no\" data-type=\"button\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"No\" data-outcome=\"response submitted\"><br \/>\n                <span class=\"Icon\"><default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Thumbs Down Icon<\/default:title><default:path d=\"M19.26 2.175c.936 0 1.454 0 1.949.247.452.226.818.592 1.044 1.043.247.495.248 1.012.248 1.948v7.678c0 .936 0 1.453-.248 1.948a2.333 2.333 0 0 1-1.044 1.042c-.495.248-1.013.248-1.95.248h-.16c-.937 0-1.454 0-1.95-.248a2.33 2.33 0 0 1-.885-.777c-.637.596-1.79 2.176-3.314 5.155-.183.365-.312.602-.538.828a1.924 1.924 0 0 1-.722.441c-.258.086-.484.097-.742.097l.022-.011a5.39 5.39 0 0 1-.905-.064 2.741 2.741 0 0 1-1.852-1.345c-.71-1.216-.721-3.066-.022-5.496h-.516c-2.283 0-3.424 0-4.34-.548a3.843 3.843 0 0 1-1.722-2.248c-.29-1.033 0-2.13.593-4.324l.517-1.925c.312-1.162.484-1.786.882-2.323.377-.495.872-.871 1.443-1.097.624-.248 1.281-.248 2.476-.248h4.597c.42 0 .635 0 .84.032.215.032.431.086.636.15.193.065.387.162.753.345l1.702.864c.017-.04.033-.082.053-.122a2.333 2.333 0 0 1 1.044-1.043c.496-.247 1.013-.247 1.95-.247h.16ZM7.503 3.798c-1.022 0-1.54 0-1.862.13-.302.118-.56.322-.765.58-.215.28-.345.775-.614 1.753l-.517 1.926c-.495 1.85-.775 2.871-.602 3.474a2.308 2.308 0 0 0 1 1.312c.539.323 1.594.322 3.51.322h1.142c.236 0 .473 0 .72.15.227.14.388.367.453.625.075.28 0 .516-.075.742-.959 2.969-.603 4.27-.301 4.775.183.312.44.506.774.57.162.033.41.033.572.033.128 0 .203 0 .236-.01.021 0 .085-.044.107-.065.032-.032.14-.237.227-.399 2.208-4.308 3.556-5.671 4.352-6.102a39.945 39.945 0 0 1-.003-.523v-7.79L13.63 4.175c-.28-.14-.41-.215-.56-.27a1.796 1.796 0 0 0-.344-.085c-.151-.022-.313-.01-.625-.022H7.503Zm11.596.001c-.625 0-1.077 0-1.228.076a.72.72 0 0 0-.323.322c-.075.15-.075.603-.075 1.226v7.68c0 .623 0 1.075.075 1.226.075.14.183.247.323.322.15.075.603.075 1.228.075h.16c.625 0 1.078 0 1.228-.075a.778.778 0 0 0 .324-.322c.075-.151.075-.603.075-1.227V5.423c0-.623 0-1.076-.075-1.226a.722.722 0 0 0-.324-.322c-.15-.076-.603-.076-1.227-.076h-.161Z\" class=\"icon-base\"\/><\/default:svg><\/span> <span class=\"text-base leading-4\">No<\/span><br \/>\n            <\/button>\n        <\/div>\n<\/p><\/div>\n<p>    <!-- Yes Form --><\/p>\n<p>    <!-- No Form --><\/p>\n<div class=\"HelpfulCTA-thankyou flex flex-col items-center gap-2\" data-cta-thankyou=\"\" style=\"display:none;\">\n<p>Thank you for your<br \/>\n            feedback!<\/p>\n<p>Your input helps us improve our<br \/>\n            content and services.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<p>Read the full article <a href=\"https:\/\/www.bankrate.com\/banking\/fdic-insurance\/\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor, per FDIC-insured bank, per ownership category. FDIC insurance covers traditional bank deposit products such as checking and savings accounts. In the event of a bank failure, the FDIC will either transfer<\/p>\n","protected":false},"author":1,"featured_media":22598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[],"class_list":{"0":"post-22597","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-homes"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FDIC Insurance: What It Is, How It Works and Limits | BudgetADirect<\/title>\n<meta name=\"description\" content=\"Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/budgetadirect.com\/?p=22597\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FDIC Insurance: What It Is, How It Works and Limits | BudgetADirect\" \/>\n<meta property=\"og:description\" content=\"Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/budgetadirect.com\/?p=22597\" \/>\n<meta property=\"og:site_name\" content=\"BudgetADirect\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-12T22:42:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-12T22:42:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#article\",\"isPartOf\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22597\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50\"},\"headline\":\"FDIC Insurance: What It Is, How It Works and Limits\",\"datePublished\":\"2025-12-12T22:42:21+00:00\",\"dateModified\":\"2025-12-12T22:42:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22597\"},\"wordCount\":1566,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/budgetadirect.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#primaryimage\"},\"thumbnailUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg\",\"articleSection\":[\"Homes\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/budgetadirect.com\/?p=22597#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22597\",\"url\":\"https:\/\/budgetadirect.com\/?p=22597\",\"name\":\"FDIC Insurance: What It Is, How It Works and Limits | BudgetADirect\",\"isPartOf\":{\"@id\":\"https:\/\/budgetadirect.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#primaryimage\"},\"image\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#primaryimage\"},\"thumbnailUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg\",\"datePublished\":\"2025-12-12T22:42:21+00:00\",\"dateModified\":\"2025-12-12T22:42:23+00:00\",\"description\":\"Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor,\",\"breadcrumb\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/budgetadirect.com\/?p=22597\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#primaryimage\",\"url\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg\",\"contentUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22597#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/budgetadirect.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FDIC Insurance: What It Is, How It Works and Limits\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/budgetadirect.com\/#website\",\"url\":\"https:\/\/budgetadirect.com\/\",\"name\":\"BudgetADirect\",\"description\":\"Latest Personal Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/budgetadirect.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/budgetadirect.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/budgetadirect.com\/#organization\",\"name\":\"BudgetADirect\",\"url\":\"https:\/\/budgetadirect.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png\",\"contentUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png\",\"width\":512,\"height\":512,\"caption\":\"BudgetADirect\"},\"image\":{\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/budgetadirect.com\"],\"url\":\"https:\/\/budgetadirect.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FDIC Insurance: What It Is, How It Works and Limits | BudgetADirect","description":"Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor,","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/budgetadirect.com\/?p=22597","og_locale":"en_US","og_type":"article","og_title":"FDIC Insurance: What It Is, How It Works and Limits | BudgetADirect","og_description":"Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor,","og_url":"https:\/\/budgetadirect.com\/?p=22597","og_site_name":"BudgetADirect","article_published_time":"2025-12-12T22:42:21+00:00","article_modified_time":"2025-12-12T22:42:23+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/budgetadirect.com\/?p=22597#article","isPartOf":{"@id":"https:\/\/budgetadirect.com\/?p=22597"},"author":{"name":"News Room","@id":"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50"},"headline":"FDIC Insurance: What It Is, How It Works and Limits","datePublished":"2025-12-12T22:42:21+00:00","dateModified":"2025-12-12T22:42:23+00:00","mainEntityOfPage":{"@id":"https:\/\/budgetadirect.com\/?p=22597"},"wordCount":1566,"commentCount":0,"publisher":{"@id":"https:\/\/budgetadirect.com\/#organization"},"image":{"@id":"https:\/\/budgetadirect.com\/?p=22597#primaryimage"},"thumbnailUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg","articleSection":["Homes"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/budgetadirect.com\/?p=22597#respond"]}]},{"@type":"WebPage","@id":"https:\/\/budgetadirect.com\/?p=22597","url":"https:\/\/budgetadirect.com\/?p=22597","name":"FDIC Insurance: What It Is, How It Works and Limits | BudgetADirect","isPartOf":{"@id":"https:\/\/budgetadirect.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/budgetadirect.com\/?p=22597#primaryimage"},"image":{"@id":"https:\/\/budgetadirect.com\/?p=22597#primaryimage"},"thumbnailUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg","datePublished":"2025-12-12T22:42:21+00:00","dateModified":"2025-12-12T22:42:23+00:00","description":"Key takeaways The Federal Deposit Insurance Corp. (FDIC) protects your money if your bank fails. Deposits are insured for up to $250,000 per depositor,","breadcrumb":{"@id":"https:\/\/budgetadirect.com\/?p=22597#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/budgetadirect.com\/?p=22597"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/budgetadirect.com\/?p=22597#primaryimage","url":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg","contentUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/12\/Robinhood-files-with-the-FDIC.jpg","width":1280,"height":720},{"@type":"BreadcrumbList","@id":"https:\/\/budgetadirect.com\/?p=22597#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/budgetadirect.com\/"},{"@type":"ListItem","position":2,"name":"FDIC Insurance: What It Is, How It Works and Limits"}]},{"@type":"WebSite","@id":"https:\/\/budgetadirect.com\/#website","url":"https:\/\/budgetadirect.com\/","name":"BudgetADirect","description":"Latest Personal Finance News and Updates","publisher":{"@id":"https:\/\/budgetadirect.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/budgetadirect.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/budgetadirect.com\/#organization","name":"BudgetADirect","url":"https:\/\/budgetadirect.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/","url":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png","contentUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png","width":512,"height":512,"caption":"BudgetADirect"},"image":{"@id":"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/budgetadirect.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g","caption":"News Room"},"sameAs":["https:\/\/budgetadirect.com"],"url":"https:\/\/budgetadirect.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts\/22597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22597"}],"version-history":[{"count":1,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts\/22597\/revisions"}],"predecessor-version":[{"id":22599,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts\/22597\/revisions\/22599"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/media\/22598"}],"wp:attachment":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}