Yes, money market accounts held at FDIC-insured banks are covered up to $250,000 per depositor, per bank

Money market accounts at banks are insured by the Federal Deposit Insurance Corporation (FDIC) the same way checking and savings accounts are. If the bank fails, the FDIC will reimburse you for balances up to $250,000. This protection applies to each depositor separately at each bank — so if you have $250,000 in a money market account at Bank A and another $250,000 at Bank B, both are fully covered.

The catch is that this insurance only covers money market accounts at banks. If you hold a money market fund through a brokerage or investment firm instead, that money is not FDIC-insured. Money market funds are investments, not deposits, and they are covered under different rules through the Securities Investor Protection Corporation (SIPC) — which works differently and has different limits.

Key Takeaways

  • Money market accounts at FDIC-insured banks are covered up to $250,000 per person per bank, the same as savings accounts.
  • Money market funds sold by brokerages and investment firms are not FDIC-insured and are protected under SIPC rules instead.
  • You can confirm whether your account is FDIC-insured by checking your bank's website or asking a representative directly.
  • If you have more than $250,000 to deposit, you can spread it across multiple banks to keep all of it insured.

How the $250,000 limit works across multiple accounts

The FDIC limit is per depositor, per insured bank. This means the $250,000 covers your total at that one bank — not per account. If you have a money market account with $150,000 and a savings account with $100,000 at the same bank, they count together toward the $250,000 limit, leaving you $0 of additional coverage.

However, if you open a money market account at a different FDIC-insured bank, that account gets its own $250,000 of coverage. So you could have $250,000 in a money market account at Bank A and $250,000 in a money market account at Bank B, and both amounts would be fully protected. The FDIC tracks coverage by the name on the account and the bank's charter number, not by account type.

Joint accounts are treated separately. If you and your spouse both own a money market account together, that joint account is covered up to $250,000. If you each own a separate money market account at the same bank, each account is covered up to $250,000. This separation exists because the FDIC insures based on ownership structure.

The difference between bank money market accounts and money market funds

A money market account at a bank is a deposit product. You deposit money, the bank holds it, and you earn interest. The bank is required to be FDIC-insured (or you should not put money there), so your deposit is protected.

A money market fund is an investment product sold by brokerages, mutual fund companies, and investment firms. You buy shares in a fund that invests in short-term debt securities. The fund is not a deposit, and the company holding it is not a bank. These funds are not FDIC-insured. Instead, they fall under SIPC protection, which covers up to $500,000 per customer per firm — but only against the firm's failure, not against losses in the fund itself.

The names are similar, which causes confusion. If you opened the account through a bank's website and it is called a "money market account," it is almost certainly FDIC-insured. If you opened it through a brokerage or investment app and it is called a "money market fund," it is not. When in doubt, ask the institution directly whether the account is FDIC-insured.

How to verify your money market account is FDIC-insured

The simplest way is to check whether your bank appears on the FDIC's official list of insured institutions. You can search by bank name on the FDIC website at fdic.gov. If the bank is listed, all deposit accounts there — including money market accounts — are FDIC-insured.

You can also call your bank directly and ask: "Is my money market account FDIC-insured?" A representative can tell you immediately. If the answer is no, move your money to a bank that does carry FDIC insurance.

Some online banks and credit unions are FDIC-insured, and some are not. Online banks that are FDIC-insured will state this clearly on their website. Credit unions are insured by the National Credit Union Administration (NCUA), which works the same way as the FDIC — up to $250,000 per member per credit union.

What happens if a bank fails

If an FDIC-insured bank fails, the FDIC steps in and pays depositors directly. You do not have to do anything to claim your money — the FDIC handles it automatically. The process typically takes a few days to a few weeks, depending on the bank's size and complexity.

The FDIC pays you in the order of your ownership. If you have $250,000 in a money market account in your name alone, you receive the full $250,000. If you have $300,000, you receive $250,000 and lose the remaining $50,000. If you have a joint account with $250,000, you and your co-owner each receive $250,000 of coverage (for a total of $500,000 covered).

Bank failures are rare. The FDIC has been insuring deposits since 1933, and the insurance fund has paid out in only a small number of cases. The last significant wave of bank failures occurred in 2008 and 2009 during the financial crisis. For most people, FDIC insurance is a safety net you will never need to use.

What FDIC insurance does not cover

FDIC insurance covers the balance in your account, but it does not cover losses from poor investment performance or fraud. If you hold a money market account and the interest rate drops, that is not an insurable loss — you simply earn less. If someone steals your login credentials and withdraws money, the theft itself is not covered by FDIC insurance, though your bank may have fraud protections that reimburse you.

FDIC insurance also does not cover safe deposit boxes, investment products like stocks or bonds, or money held outside the bank (such as cash you keep at home). It covers only deposits held in the bank's name.

Frequently Asked Questions

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

$250,000 is insured. The remaining $50,000 is not protected by the FDIC. If you want all $300,000 covered, you would need to split it between two FDIC-insured banks, keeping $250,000 at each one.

Are money market accounts at online banks FDIC-insured?

Only if the online bank is FDIC-insured. Many online banks are, but not all. Check the bank's website or search the FDIC's list of insured institutions. If the bank is there, your money market account is covered.

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

No. A money market account is a bank deposit and is FDIC-insured. A money market fund is an investment and is not FDIC-insured. They have similar names but different protections. Ask your provider which one you have.

What if my bank is not FDIC-insured?

Your money market account is not protected by the FDIC. You should move your money to an FDIC-insured bank. You can search for insured banks on the FDIC website or ask a bank directly whether it carries FDIC insurance.

Does FDIC insurance cover my money if the bank is hacked?

FDIC insurance covers your balance if the bank fails, not if it is hacked. However, banks have fraud protections and are required to reimburse you for unauthorized transactions in most cases. Contact your bank immediately if you suspect fraud.