The Financial Deposit Insurance Corporation, or the FDIC, is a government agency that offers federal deposit insurance for deposit accounts, such as checking, savings and certificates of deposit. The National Credit Union Administration (NCUA) does the same thing for deposit accounts opened at credit unions, also offering at least $250,000 in coverage.
If you open a deposit account at a federally insured institution, your account funds are insured automatically at no cost — but only up to a certain amount. If you are looking for a million dollar bank account with more than $250,000 in deposit insurance, you have options.
7 top accounts with high FDIC insurance
These accounts offer more than the typical $250,000 deposit insurance amount — providing protection of $1 million or more.
| SoFi® Checking and Savings | Up to $3 million | $0 | Go to site |
| Wealthfront Cash | Up to $8 million | $0 | Go to site |
| Bluevine Business Checking | Up to $3 million | Starts at $0 | Go to site |
| Upgrade’s Premier Savings | Up to $1 million | $0 | Read Review |
| Credit Karma Money Save | Up to $5 million | $0 | Read Review |
| Betterment Cash Reserve | Up to $2 million | $0 | Read Review |
| Webull Cash Management Account | Up to $2.25 million | $0 |
What does FDIC insurance actually cover?
The FDIC offers deposit insurance up to the standard amount of at least $250,000 per depositor, per FDIC-insured bank, per ownership category. FDIC insurance doesn’t cost anything, since it’s automatically included when you open an account at an FDIC-insured institution.
If you are the sole owner of a deposit account, like a checking or savings account, your money in that account is protected up to at least $250,000. This simply means that if your bank fails, the FDIC will ensure you receive up to $250,000 of the funds in any FDIC-insured accounts.
But what if you have more than $250,000 in a single account? You can either spread funds across multiple accounts with different banks or open an account with FDIC insurance exceeding $250,000.
How can banks offer more than $250,000 in FDIC insurance?
Banks and fintechs can provide higher FDIC insurance coverage through a deposit sweep program.
In a nutshell, if the bank or fintech is partnered with multiple banks and offers a deposit sweep program, it disperses your deposits across multiple banks to offer higher deposit insurance coverage.
What accounts offer higher insurance coverage?
Cash management accounts (CMAs) often offer more than $250,000 in FDIC coverage. This is because most CMAs are connected to brokerage accounts and have additional wealth management services, and those customers tend to have high balances.
Business accounts and online banks like SoFi are also more likely to offer higher-than-typical insurance protection than everyday personal accounts issued by traditional institutions.
Does a joint account have $500,000 FDIC insurance?
Yes, joint accounts with two owners are protected by up to $500,000 in deposit insurance. Each account holder receives up to $250,000 in coverage.
FDIC insurance is $250,000 per depositor, per FDIC-insured bank, per ownership category.
Bottom line
Legitimate banks and credit unions offer deposit insurance. If you’re unsure an account offers deposit insurance, simply look for the phrase “FDIC insured” or “FDIC-insured bank” when comparing accounts. If you’re comparing credit unions, look for “NCUA insured.”
Accounts with high FDIC insurance are best suited for those with very large balances at risk of having some funds not covered under typical insurance amounts.
If you don’t have more than $250,000 in a single account or you already have multiple bank accounts and your funds are dispersed, an account with high FDIC coverage might not be necessary for you. In that case, compare more checking accounts or the best high-yield savings accounts.
