Key takeaways
- Standard coverage is $250,000 per depositor, per insured bank, per ownership category.
- Two checking accounts at the same bank in the same name still share one limit.
- Brokerage cash sweeps may sit at other banks. Read the sweep disclosure.
FDIC insurance is a government-backed guarantee on deposits at insured banks, up to the published limits. It is not a blanket on everything labeled “cash” in a fintech app.
The unit that matters
The classic limit is $250,000 per depositor, per insured bank, per ownership category (for example, single vs joint). Opening “Vacation” and “Taxes” sub-accounts does not multiply coverage if they are the same ownership at the same bank. Joint accounts and certain trust rules can increase coverage. The FDIC’s own estimator is the authority, not a screenshot.
Fintech and sweeps
Some apps park balances at a network of banks. Coverage then depends on how those banks are titled and whether you already have deposits there. If the app fails, your claim may be on the bank, the program, or both. Read the deposit-network disclosure.
Confirm at FDIC.gov. Credit unions use NCUA share insurance, a parallel system.
