FDIC insurance is United States deposit insurance that protects deposits at insured banks if a bank fails. The standard limit is 250,000 dollars per depositor, per insured bank, for each account ownership category.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How FDIC insurance works
The Federal Deposit Insurance Corporation, or FDIC, is an independent agency of the United States government that insures deposits at member banks. If an FDIC insured bank fails, the FDIC compensates depositors up to the insurance limit, which is 250,000 dollars per depositor, per insured bank, for each account ownership category, as of 1 January 2026. Coverage is automatic for deposit accounts at an insured bank, so a depositor does not have to apply for it. Insured products include checking accounts, savings accounts, money market deposit accounts, and certificates of deposit. FDIC insurance does not cover investment products such as stocks, bonds, mutual funds, or crypto assets, even when these are bought through an insured bank.
How the limit applies to a business
For a business, deposits held under one ownership category at a single insured bank are added together and insured up to 250,000 dollars in total. Business deposits are generally insured under a category separate from the owner's personal accounts at the same bank, so personal balances do not reduce the business coverage. A business holding more than the limit can spread balances across separately chartered insured banks, or use certain deposit placement networks, so that more of the money falls within coverage. Because some banking brands can share a single charter, a business should confirm which insured bank holds its money and how the limit applies.
Why it matters to a business
FDIC insurance applies to deposits at United States insured banks. Deposits at credit unions are instead covered by the National Credit Union Administration through a separate fund, and other countries run their own schemes, such as the United Kingdom FSCS. A business banking through a financial technology provider that is not itself a bank should check whether and how its funds are placed at an insured bank, because the protection depends on that arrangement rather than on the provider alone. Verify that a bank is FDIC insured and confirm the current limit and terms with the bank and the FDIC before relying on coverage.
Frequently asked questions
What is FDIC insurance?
How much does FDIC insurance cover?
Are business accounts covered by FDIC insurance?
Is the FDIC limit per account or per bank?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 1 January 2026. Confirm current terms with the provider before applying.