The Federal Deposit Insurance Corporation covers deposit accounts against losses resulting from a bank failure. Deposit accounts include money market deposit accounts, certificates of deposit, checking accounts and savings accounts.
The FDIC has increased the coverage limit over time. As of 2010, banks cover the first $250,000 of money you have in insured accounts. For example, if you had a money market deposit account with $199,000 at Bank A and $233,000 in a savings account at bank B, insurance covers both accounts because they are at separate banks.
The FDIC insurance applies separately to accounts in different categories. The categories include single accounts, joint accounts, certain retirement accounts, revocable trust accounts and irrevocable trust accounts. For example, if you have $203,000 in a savings account in your name alone and $211,000 in a joint savings account, the insurance covers the entire amount, even if both accounts are at the same bank.
The only retirement funds protected are those in covered account types. For example, the FDIC covers funds in an individual retirement account invested in a certificate of deposit, but not funds in investment accounts, such as stocks, bonds or mutual funds.