Money market accounts are FDIC insured up to $250,000 per depositor, per bank, in the same ownership category

Yes, money market accounts held at banks are covered by FDIC insurance. The Federal Deposit Insurance Corporation insures deposits at member banks if the bank fails. The standard coverage limit is $250,000 per person, per institution. If you have $300,000 in a money market account at one bank, the FDIC covers $250,000 and you lose the remaining $50,000.

The key word is "per bank." If you have $250,000 in a money market account at Bank A and another $250,000 in a money market account at Bank B, both are fully covered because they are at different institutions. But if you split $300,000 between two money market accounts at the same bank, only $250,000 total is protected across both accounts.

Money market accounts at credit unions are covered by a similar program called NCUA insurance (National Credit Union Administration), also up to $250,000 per member per credit union. Money market funds sold by brokerages are not bank deposits and are not FDIC insured at all — they are securities and carry different protections.

Key Takeaways

  • FDIC insurance covers money market accounts at banks up to $250,000 per person per bank, so amounts above that threshold are uninsured.
  • The $250,000 limit applies across all deposit accounts you own in the same ownership category at one bank, not per account.
  • Money market accounts at credit unions are covered by NCUA insurance with the same $250,000 limit, not FDIC.
  • Money market funds purchased through a brokerage are not bank deposits and receive no FDIC or NCUA coverage.
  • Joint accounts, retirement accounts, and trust accounts have separate $250,000 coverage limits from your individual accounts at the same bank.

How the $250,000 limit works across multiple accounts

FDIC coverage is not per account — it is per depositor, per bank, per ownership category. If you have a savings account with $100,000, a checking account with $80,000, and a money market account with $90,000, all at the same bank under your name alone, the FDIC covers only $250,000 total. The extra $20,000 is uninsured.

Ownership category matters. A money market account in your individual name, a joint money market account with your spouse, and a money market account held in trust for your child are three separate categories at the same bank. Each gets its own $250,000 coverage. So you could have $250,000 in your individual money market account, $250,000 in a joint account with your spouse, and $250,000 in a trust account — all at the same bank, all fully covered.

Retirement accounts (IRAs, SEP-IRAs, SIMPLE IRAs) also have separate $250,000 coverage from your other accounts at the same bank. A traditional IRA money market account and a Roth IRA money market account at the same bank are covered separately, up to $250,000 each.

When your money market account is not FDIC insured

Money market accounts at investment firms and brokerages are not FDIC insured. If you buy a money market fund through Fidelity, Vanguard, Charles Schwab, or another brokerage, that is a mutual fund, not a bank deposit. The fund itself is not insured by the FDIC. If the fund company fails, your shares are protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 per customer per firm — but that is a different type of protection and does not cover losses from the fund's investments declining in value.

Some brokerages offer "sweep" features that move uninvested cash into FDIC-insured money market accounts at partner banks. These swept deposits are FDIC insured, but only up to the $250,000 limit per bank. If you have $500,000 in cash swept across two banks, both portions are covered. Check your brokerage's documentation to see which banks hold your swept deposits and whether the total at any single bank exceeds $250,000.

Money market accounts at online banks are FDIC insured the same way as accounts at brick-and-mortar banks. The online status does not change coverage. What matters is whether the institution is an FDIC member bank. You can check the FDIC's Bank Find tool on their website to confirm a bank's membership.

Coverage limits if you have accounts at multiple banks

You can hold more than $250,000 in money market accounts and keep it all insured by spreading it across different banks. If you have $250,000 at Bank A, $250,000 at Bank B, and $250,000 at Bank C, all three amounts are fully covered. The FDIC insures each bank separately.

The challenge is tracking which bank holds how much and staying within the $250,000 limit at each one. Some people use a service called IntraFi (formerly Promontory Interbank Network) that automatically spreads large deposits across multiple FDIC-insured banks and keeps each portion under $250,000. Your bank may offer this service, or you can set up accounts directly at multiple banks yourself.

If you are married and both spouses have individual money market accounts, each person's $250,000 limit is separate. You and your spouse can each hold $250,000 in individual money market accounts at the same bank, and both amounts are fully covered. A joint account is a third separate category with its own $250,000 limit.

What happens if your bank fails

If an FDIC-insured bank fails, the FDIC steps in as receiver. The agency typically arranges for another bank to assume your deposits, and you keep access to your money market account with no interruption. You do not have to do anything — the FDIC handles the transfer. Your covered balance (up to $250,000) is protected in full.

If your balance exceeds $250,000, the FDIC pays out the covered amount and you become a creditor for the uninsured portion. You may recover some or all of the excess depending on how much the bank's assets sell for, but there is no may provide. In practice, bank failures are rare and most deposits are recovered in full, but the uninsured portion carries real risk.

The FDIC maintains a list of failed banks on its website. Since 2008, the number of bank failures has been very small in most years. Still, FDIC insurance exists because bank failure is possible, and it protects your money if it happens.

How to confirm your money market account is FDIC insured

Check three things: (1) Is the institution an FDIC member bank? (2) Is the account a deposit account, not a mutual fund or investment product? (3) Is your total in that ownership category at that bank under $250,000?

Use the FDIC's Bank Find tool at fdic.gov to search for your bank by name or location. If it appears in the results, it is FDIC insured. If it does not appear, it is not an FDIC member and your deposits are not covered by FDIC insurance.

Ask your bank directly: "Is my money market account FDIC insured?" They should confirm yes or no and tell you the coverage limit. If they say the account is a money market fund rather than a money market account, it is not FDIC insured — it is a mutual fund.

Frequently Asked Questions

If I have $300,000 in a money market account, how much is insured?

$250,000 is insured by the FDIC. The remaining $50,000 is uninsured. If the bank fails, you lose the $50,000. To protect the full $300,000, you would need to split it between two different FDIC-insured banks, holding $250,000 at each.

Are money market accounts at credit unions FDIC insured?

No, credit union deposits are covered by NCUA insurance, not FDIC insurance. The coverage limit is the same — $250,000 per member per credit union — but it is a separate program. NCUA is the National Credit Union Administration.

Is a money market fund the same as a money market account?

No. A money market account is a bank deposit and is FDIC insured. A money market fund is a mutual fund sold by a brokerage and is not FDIC insured. They have similar names but different protections. Check your account documents or ask your provider which one you own.

If my spouse and I have a joint money market account, is it covered separately from my individual account?

Yes. A joint account is a separate ownership category with its own $250,000 FDIC coverage limit. You can have $250,000 in an individual money market account and $250,000 in a joint account at the same bank, and both are fully covered.

What if I have money market accounts at two branches of the same bank?

It does not matter which branch. FDIC coverage is per bank, not per branch. If you have $300,000 split between two branches of Bank A, only $250,000 total is covered. The branch location makes no difference.