Federal insurance protects deposits. But not everything at a bank is a deposit.
The $250,000 rule is more specific than most people think
Most people have heard that bank deposits are insured up to $250,000. That is broadly true, but the details matter. The standard deposit insurance amount is $250,000 per depositor, per insured institution, per ownership category. That three-part structure means the coverage depends not just on how much you have, but where it is held and how the account is titled.
Opening multiple accounts at the same bank in the same ownership category does not multiply your coverage. A checking account, a savings account, and a CD at the same bank, all in your name alone, are generally added together under one $250,000 limit. Joint accounts, trust accounts, and retirement accounts follow different ownership-category rules. The FDIC provides an estimator tool for complex situations.
Credit unions use NCUA, not FDIC
Federally insured credit unions are covered by the National Credit Union Share Insurance Fund, administered by NCUA. The standard coverage is also $250,000 per member-owner, per insured credit union, per ownership category. The structure is similar to FDIC, but the agency is different, and not every credit union is federally insured. Verification takes thirty seconds using the NCUA lookup tool.
What is not insured
Stocks, bonds, mutual funds, crypto assets, annuities, and other investment products sold at a bank or credit union are not deposit-insured, even if you bought them at the teller window. Verifying your institution takes less than a minute: the FDIC's BankFind tool at fdic.gov confirms whether a bank is insured, and the NCUA's Credit Union Locator at ncua.gov does the same for credit unions. If the institution is not in either database, its deposits are not federally insured, and the $250,000 guarantee does not apply.
Insurance protects deposits. The word to check is not "safe." It is "insured." And the lookup takes less time than reading this paragraph.
What the action step builds
You will verify the insurance status of every institution where your household keeps money. This becomes the deposit-insurance section of your Household Money Reset.
The reading for this module
Focus on the deposit insurance section of this reading. Use the FDIC BankFind or NCUA lookup tool during the action step.
Verify your deposit insurance.
For each bank or credit union where your household keeps money, verify that it is federally insured. Use FDIC BankFind or NCUA's tool. Record the institution name, whether it is FDIC or NCUA insured, and the ownership category that applies to your account. Note whether any account holds funds that are not deposit-insured (investment products, brokerage, crypto).