Deposit insurance in the United States is designed to keep everyday savers and organizations confident that their money is protected if a bank or credit union fails. Two regulators provide this backstop: the Federal Deposit Insurance Corporation (FDIC) for banks and the National Credit Union Administration (NCUA) for federally insured credit unions. Both insure eligible deposits up to $250,000 per depositor, per insured institution, per ownership category—a framework that can meaningfully expand your protection when used correctly.

Insurance: FDIC vs NCUA explained

FDIC coverage applies to insured banks, while NCUA coverage (through the National Credit Union Share Insurance Fund) applies to federally insured credit unions. Both are backed by the full faith and credit of the U.S. government and cover similar deposit types: checking, savings, money market deposit accounts, and certificates of deposit (CDs). Coverage is not combined across institutions; protection is calculated separately at each insured bank or credit union. If your institution is not explicitly insured, deposits may not be protected, so it’s important to verify the insurance status on official signage or through regulator tools before depositing substantial funds.

Savings: coverage by ownership category

Ownership categories determine how much of your savings is insured at a single institution. Common categories include: single accounts (owned by one person), joint accounts (two or more co-owners), certain retirement accounts (such as IRAs invested in bank CDs or share certificates), revocable trust accounts (including payable-on-death or in-trust-for accounts), irrevocable trusts, corporation/partnership/unincorporated association accounts, government accounts, and employee benefit plan accounts. The $250,000 limit applies separately to each depositor in each category at one institution. For example, a single account and an IRA CD at the same bank are typically insured in different categories, potentially providing $250,000 of coverage in each.

Investment: what is and isn’t insured?

Deposit insurance protects deposits, not market investments. Covered deposits include checking, savings, money market deposit accounts, and time deposits like CDs. Not insured: stocks, bonds, mutual funds, exchange-traded funds, commodities, crypto assets, and annuities—even if purchased through a bank or credit union. Money market mutual funds are not insured, but money market deposit accounts are. Brokered deposits or sweep programs may be insured at the banks or credit unions where funds ultimately reside; coverage is still subject to the per-institution, per-category rules and should be verified to ensure placement across multiple insured institutions where needed.

Financial planning: organizing accounts

You can align account structures with your financial planning goals while staying within insurance limits. Single accounts are insured up to $250,000 per depositor per institution. Joint accounts provide $250,000 per co-owner, so a two-person joint account can have up to $500,000 insured at one institution. Certain retirement deposits like IRA CDs receive up to $250,000 in their own category. Revocable trust accounts may increase coverage based on the number of eligible beneficiaries named by each owner, potentially allowing substantially higher insured balances when structured properly. Business accounts owned by corporations or partnerships are insured separately from the owners’ personal accounts, while sole proprietorship deposits are combined with the owner’s single accounts at the same institution.

Money management: practical examples

• Individual saver: $300,000 in a single account at one FDIC bank results in $250,000 insured and $50,000 uninsured. Moving $50,000 to another insured bank or to a different ownership category can restore full coverage.
• Joint account: Two co-owners keep $600,000 in a joint account at one credit union. Coverage is $250,000 per co-owner, for a total of $500,000 insured; $100,000 is uninsured unless redistributed across additional insured institutions or categories.
• Revocable trust: A couple names three children as beneficiaries of a revocable trust account at one bank and deposits $1,000,000. Because revocable trust coverage is based on owners and eligible beneficiaries, this structure can often insure the full balance when requirements are met. Documentation and beneficiary designations must be clear and current.
• Retirement deposits: $300,000 across IRA CDs at a single bank generally provides $250,000 of coverage in the retirement category; placing $50,000 at another insured institution can fully insure the total.
• Sole proprietorship: A DBA account with $150,000 and a personal single account with $200,000 at the same bank are combined in the single account category, totaling $350,000; $100,000 would be uninsured unless moved.

In all scenarios, remember that coverage is calculated per depositor, per insured institution, per ownership category. Spreading funds across multiple insured institutions or using distinct categories can increase protection without changing your overall cash position.

Conclusion FDIC and NCUA deposit insurance offer a clear framework for safeguarding cash, but protection depends on how accounts are titled and where funds are placed. By understanding ownership categories, distinguishing insured deposits from non-deposit investments, and using examples like joint, retirement, trust, and business accounts, you can keep more of your cash within federal insurance limits while staying aligned with your broader savings, investment, and money management objectives.