FDIC insurance protects your money in bank accounts up to $250,000 per depositor, per bank, for each ownership category, if the bank fails.
In Depth
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects depositors of insured banks located in the United States against the loss of their deposits if an FDIC-insured bank fails. This insurance covers checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs). It does not cover investments like stocks, bonds, or mutual funds, even if purchased through an insured bank. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
Example
If your bank goes out of business, FDIC insurance ensures you'll get back up to $250,000 of the money you had deposited there.