FDIC insurance basics: $250,000 standard limit — The standard per-depositor, per-insured-bank FDIC insurance limit commonly cited is $250,000. That amount represents the maximum covered balance for each ownership category (individual, joint, retirement, trust, etc.) at each insured bank. The purpose of deposit insurance is to protect consumers’ core cash if a bank fails, restoring confidence and reducing the risk of runs. Important nuances: coverage is calculated per depositor, per ownership category, per bank — meaning you can increase overall insured protection by using different ownership categories or different banks. For example, individual accounts and joint accounts are treated as separate categories, each with its own $250,000 coverage at the same bank. Similarly, accounts titled differently or with trust beneficiaries may receive additional coverage under specific rules. Because deposit insurance applies only to certain types of deposit products (checking, savings, money market accounts, CDs), it’s wise to confirm how your holdings are categorized when protecting large balances.

How to manage balances above the standard limit — If your total cash exceeds $250,000 per category, consider distribution strategies: open accounts at other FDIC-insured banks, split funds across eligible ownership categories (for example, add a joint account), or use cash management programs that sweep funds into multiple banks to maximize coverage. When evaluating options, weigh the administrative overhead of multiple accounts against the value of insurance. Also consider liquidity, interest rates, and any account fees. Keep records and account titles clear so ownership categories are unambiguous. Regularly review your deposits relative to the insured limit, especially during life changes (inheritance, sale of property, business proceeds), and consult your bank’s disclosures or a trusted advisor for edge cases like revocable trusts or complex ownership arrangements.