FDIC Insurance: What It Covers and How It Protects Your Money

When you put money in a bank, you expect it to be there when you need it. That’s where FDIC insurance, a U.S. government program that protects depositors against bank failures. Also known as deposit insurance, it’s the reason millions of Americans feel safe keeping their cash in checking and savings accounts. If your bank goes under, the FDIC steps in to return your money—up to $250,000 per person, per bank, per account type. It’s not a guess. It’s the law. And it’s been working since 1933.

But FDIC insurance doesn’t cover everything. It doesn’t protect stocks, bonds, mutual funds, crypto, or life insurance policies—even if you bought them through a bank. It also doesn’t cover losses from fraud or identity theft. What it does cover? Checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs). If you have $200,000 in a savings account and $50,000 in a CD at the same bank, you’re fully covered. But if you have $300,000 in one account, $50,000 is at risk. That’s why knowing how insured banks, financial institutions that participate in the FDIC program and display the official FDIC sign work matters. You can check if your bank is covered at fdic.gov. If you see the logo, your deposits are protected.

Many people assume all banks are the same when it comes to safety. But not every financial institution is FDIC-insured. Credit unions, for example, use the NCUA instead. And online banks? Some are FDIC-insured, some aren’t. Always verify. You can spread your money across multiple banks to stay under the $250,000 limit per institution. Joint accounts get $250,000 per co-owner. Trust accounts have different rules. It’s not complicated—but you need to know the details. The FDIC doesn’t automatically protect you. You have to understand how it works.

What you’ll find in the articles below are real stories and practical breakdowns of how people protect their money, what happens when banks fail, and how to spot red flags before they become problems. You’ll see how FDIC insurance connects to home equity loans, debt consolidation, and even credit card choices—because your banking safety affects everything else. No fluff. No jargon. Just what you need to know to keep your money safe.