FDIC insurance
Federal deposit insurance that protects money in a covered US bank account up to $250,000 per depositor, per bank, per ownership category.
FDIC insurance is a federal guarantee on deposit accounts at insured US banks. If an insured bank fails, the Federal Deposit Insurance Corporation reimburses depositors up to the coverage limit, currently $250,000 per depositor, per insured bank, per ownership category. Credit unions have an equivalent guarantee through the NCUA.
The limit is applied per ownership category, not per account. Money in single-owner accounts at one bank shares one $250,000 limit, but joint accounts, certain retirement accounts, and trust accounts are counted separately. Someone with checking, savings, and a CD at the same bank shares one limit across all three; someone with accounts at two different insured banks has a separate limit at each.
Coverage applies to deposit products — checking, savings, money market deposit accounts, and CDs. It does not cover investment products such as stocks, bonds, mutual funds, or crypto, even when purchased through a bank. "High-yield" savings at an insured bank has the same protection as any other insured savings.
Plumb is financial education, not financial, investment, tax, or legal advice.