- The FDIC insures up to $250,000 per depositor, per insured bank, per ownership category.
- All of a business’s deposits at one bank in the same category are added together toward a single $250,000 limit.
- Anything above the limit is uninsured and may not be fully recovered if the bank fails.
- Spreading deposits across multiple insured institutions is how total coverage can extend beyond $250,000.
What the FDIC insures
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government. It insures deposits at member banks — checking, savings, money market deposit accounts (MMDAs) and certificates of deposit (CDs) — up to the standard maximum of $250,000. Credit union deposits are insured on the same basis by the National Credit Union Administration (NCUA). Investments such as stocks, bonds, mutual funds and money market funds are not deposits and are not FDIC-insured.
How the $250,000 limit really works
The limit applies per depositor, per insured bank, for each account ownership category. Common categories include single accounts, joint accounts, certain retirement accounts, trust accounts and corporation/partnership/unincorporated association accounts. A business typically has one category — so every account it holds at the same bank, including operating, payroll and savings, is added together and insured only up to $250,000 in total.
Why most business cash is under-insured
A company holding $5 million at one bank has $250,000 insured and $4.75 million uninsured — 95% of its cash. Opening more accounts at the same bank does not help, because they are aggregated. FDIC data shows trillions of dollars in uninsured domestic deposits across the U.S. banking system.
What happens to uninsured deposits if a bank fails
Insured deposits are typically made available within one to two business days. Uninsured balances are not paid out in full: depositors generally receive a receivership certificate and may recover some, all or none of the uninsured amount over time, depending on what the FDIC recovers from the failed bank’s assets.
How businesses insure cash above $250,000
The most common approach is to place deposits at multiple FDIC- and NCUA-insured institutions, keeping each deposit within the limit. Doing it yourself means opening and monitoring many bank accounts. Deposit administration programs like Ampersand do this through one account: funds are placed across a network of 300+ insured institutions and titled to support pass-through insurance in your name, with one login, one statement and one 1099-INT.
Frequently asked
No. It is $250,000 per depositor, per insured bank, per ownership category. Multiple accounts at the same bank in the same category are added together.
Related reading
More guides
Ampersand, Inc. is not a bank or depository institution. Ampersand acts as administrator in placing deposits at FDIC- or NCUA-insured banks or credit unions; deposit insurance is provided by those institutions, subject to standard limits, aggregation rules, and pass-through requirements. ‡ Program rates have averaged 5–9x the FDIC national average savings rate, as of 10/15/2026; averages are not a guarantee of any client’s rate. § CDs are issued by participating insured institutions; “most competitive” compares per-bank CD rates with publicly available national CD rate data as of 09/19/2026. A placement fee applies to CDs and is charged at maturity, subject to a signed agreement with Ampersand; see your agreement for fee details. Rates vary and are not guaranteed. This guide is general information, not legal, tax or investment advice. Full disclosures →