The maximum FDIC insurance coverage is $250,000 per depositor, per insured bank, for each account ownership category.
The Federal Deposit Insurance Corporation was created in 1933 during the banking crisis of the Great Depression. Its insurance system protects eligible deposits when an FDIC-insured bank fails, helping prevent panic withdrawals and preserving confidence in the banking system.
The $250,000 limit applies to deposit products such as checking accounts, savings accounts, money-market deposit accounts, and certificates of deposit. It does not cover stocks, bonds, mutual funds, annuities, or life-insurance policies, even when those products are purchased through a bank.
A common mix-up is treating $250,000 as a strict per-bank total. Separate ownership categories—such as single, joint, and certain trust accounts—can receive separate coverage when the account titles and beneficiaries meet FDIC rules. Deposits at separately chartered banks are also insured separately; simply using different branches of the same bank does not create extra coverage.