Is My Savings Safe in the Bank?

Yes — if your money is in an insured bank and under the limit. In the US, FDIC deposit insurance covers up to $250,000 per depositor, per insured bank, per ownership category. In Australia, the government’s Financial Claims Scheme covers up to $250,000 per account holder, per authorised bank (ADI).

For a savings challenge or an emergency fund, that’s far more than enough. Here’s what’s covered, what isn’t, and how to check.

What FDIC insurance covers (US)

FDIC insurance protects deposits if an insured bank fails. Covered deposits include:

• Checking and savings accounts
• Money market deposit accounts
• Certificates of deposit (CDs)

It does not cover investments such as stocks, bonds, mutual funds, crypto or annuities — even if you bought them through your bank — and it doesn’t cover the contents of a safe deposit box.

Credit unions have a separate federal insurance through the NCUA, with the same standard amount.

What “per ownership category” means

Different types of accounts are counted separately. For example, a single account in your name and a joint account with your partner are different categories, each with its own limit at the same bank. The FDIC’s deposit insurance pages explain every category and have a calculator for more complicated situations.

How to check your bank in 2 minutes

1. Look for the “Member FDIC” sign on the bank’s website or app.
2. Search the bank’s name in the FDIC’s BankFind tool on fdic.gov.
3. Using an app or online-only account? Find the name of the partner bank in its terms, then check that bank.

Savings apps: the fine print

Many apps aren’t banks. They hold your money at a partner bank. If that bank is FDIC-insured, your money can be covered — but the protection depends on the money really being at that bank and the records being right. Read the app’s disclosures, and for money you can’t afford to lose, a regular insured bank account keeps things simple.

Australia: the Financial Claims Scheme

Deposits with an authorised deposit-taking institution (banks, building societies and credit unions licensed by APRA) are guaranteed up to $250,000 per account holder per institution. Moneysmart has a plain-English explanation and a list of what’s included.

Cash at home vs. in the bank

Cash in a drawer isn’t insured against theft, fire or loss, and it doesn’t earn interest. For cash stuffing, keep only the current pay period’s spending money at home and deposit savings envelopes regularly.

Bonus: a little interest helps

Savings accounts pay interest, and interest earns interest over time (compound interest). The SEC’s Investor.gov explains how it works and has a free calculator. It won’t make you rich, but on an emergency fund or a 52-week challenge it’s a small bonus for doing nothing.

This is general information, not personalized advice. Rules can change; check the FDIC or Moneysmart for the current details.