Glossary term
Deposit Insurance
Deposit insurance is federal protection for money held at insured banks and credit unions. The FDIC covers bank deposits and the NCUA covers credit union shares, each up to $250,000 per depositor, per insured institution, per ownership category. If an insured institution fails, covered deposits are repaid, including interest accrued up to the limit.
Updated October 17, 2026 · Editorial Team
How Deposit Insurance works in practice
Coverage applies to deposit products such as checking, savings, money market deposit accounts and CDs. It does not cover stocks, bonds, mutual funds, crypto or annuities, even when sold at a bank. Because limits apply per ownership category, accounts held in different ways, such as single, joint and certain retirement accounts, are insured separately.
Suppose you hold $300,000 in a single-owner account at one bank. $250,000 is insured and $50,000 is not. If instead you keep $250,000 in your own account and $500,000 in a joint account with your spouse at the same bank, all $750,000 can be covered, because joint accounts are insured up to $250,000 per co-owner.
If your savings exceed the limit, you can spread money across insured institutions or ownership categories. You can confirm whether a bank or credit union is insured through the official agency tools before you deposit.
Deposit Insurance: quick questions
What does FDIC insurance not cover?
Investment products like stocks, bonds, mutual funds, annuities and crypto, plus safe deposit box contents, even when bought at a bank.
Are credit unions insured?
Federally insured credit unions are covered by the NCUA up to the same $250,000 standard limit.
Does deposit insurance cover interest?
Yes, accrued interest counts toward the coverage limit along with principal.
Sources
- Deposit Insurance — Federal Deposit Insurance Corporation. Accessed October 17, 2026.
- Share Insurance Coverage — National Credit Union Administration. Accessed October 17, 2026.
We cite primary sources: regulators, central-bank data and federal agencies. Worked examples on this page are our own calculations. See our methodology.
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