FDIC Insurance Explained: How to Protect $1M+ at One Bank
The $250,000 limit isn't really a limit — it's per depositor, per ownership category, per bank. Here's how to legitimately cover $1M+ at a single bank.
What FDIC actually covers
FDIC insurance protects up to $250,000 per depositor, per insured bank, per ownership category. Most people stop at the first number. The other two are where the real coverage lives.
Ownership categories — coverage stacks
Each of these counts as a separate $250k slot at the same bank:
- Single accounts (one owner): $250k
- Joint accounts (two owners): $250k × 2 owners = $500k
- Revocable trust accounts (POD/TOD): $250k per beneficiary, up to 5 beneficiaries
- IRA accounts: separate $250k
- Business accounts: separate $250k for sole prop / LLC
A real example — $1.75M at one bank
A married couple with two adult children can hold this much, fully insured, at a single bank:
- Joint checking: $500,000 ($250k × 2 owners)
- His POD savings (2 beneficiaries): $500,000 ($250k × 2 kids)
- Her POD savings (2 beneficiaries): $500,000
- His IRA: $250,000
Total: $1.75M, fully insured, at the same bank.
Tools that automate this
- IntraFi (ICS / CDARS) — many banks participate. You deposit $5M and they auto-split across dozens of partner banks, all under FDIC coverage. You see one statement.
- Brokerage cash sweep programs at Fidelity and Schwab spread cash across multiple banks for higher coverage.
What's NOT FDIC-insured
- Investments (stocks, bonds, mutual funds, money market funds)
- Crypto and stablecoins
- Annuities and life insurance (covered by state guaranty associations instead)
- Safe deposit box contents
Quick coverage check
Use the FDIC's free EDIE estimator at edie.fdic.gov to confirm your specific setup is fully covered. Takes about 5 minutes.
Bottom line
If your cash exceeds $250k, you almost certainly don't need to spread it across multiple banks — you just need to structure ownership correctly. A 30-minute trip to your banker can legitimately cover $1M+ at one place.