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

If you open a money market account at a bank, your money is covered by Federal Deposit Insurance Corporation (FDIC) protection. This means if the bank fails, the FDIC will return your deposits up to $250,000. The same $250,000 limit applies whether you have a checking account, savings account, or money market account at that same bank — they all count toward one total.

The key word is "bank". If you open a money market account at a credit union instead, it is covered by a different insurance program called the National Credit Union Administration (NCUA), which also protects up to $250,000. If you open one at a brokerage firm, it is not covered by either program — brokerages use a different system called SIPC coverage, which works differently and has lower limits.

FDIC insurance is automatic. You do not need to sign up for it, pay for it, or do anything special. It is built into any deposit account at a bank that is FDIC-insured, which includes nearly all banks you will encounter.

Key Takeaways

  • Money market accounts at banks are FDIC insured up to $250,000 per person per bank, the same as any other bank deposit account.
  • The $250,000 limit is shared across all your accounts at one bank — if you have $150,000 in a money market account and $120,000 in a savings account at the same bank, only $250,000 total is protected.
  • Money market accounts at credit unions are covered by NCUA insurance instead, which also protects up to $250,000.
  • Money market accounts at brokerages are not FDIC or NCUA insured and are covered by SIPC instead, which protects only up to $250,000 in securities and cash combined.

How the $250,000 limit works across multiple accounts

The $250,000 FDIC limit applies per depositor per bank, not per account. This means if you have multiple accounts at the same bank — a checking account, a savings account, and a money market account — the insurance covers all of them together up to $250,000 total, not $250,000 each.

If you have $100,000 in a money market account and $160,000 in a savings account at the same bank, only $250,000 is insured. The bank will lose $10,000 if it fails. However, if you split that $260,000 between two different banks — $130,000 at Bank A and $130,000 at Bank B — both amounts are fully insured because the limit resets at each bank.

There is one exception: certain account types are insured separately. A money market account held in your name alone is insured separately from a money market account held jointly with someone else at the same bank. A money market account you own is also insured separately from a money market account you hold as a trustee for someone else. But a money market account and a savings account in your name at the same bank share the same $250,000 limit.

What FDIC insurance actually covers and does not cover

FDIC insurance covers the balance in your money market account — the principal and any interest that has been added to the account. It does not cover losses from investment decisions. If your money market account holds mutual funds or individual stocks, those are not covered by FDIC insurance; they are covered by SIPC if held at a brokerage, or not covered at all if held elsewhere.

Most money market accounts at banks hold only cash and short-term debt instruments like Treasury bills and commercial paper, so FDIC insurance covers them fully. Some money market accounts allow you to buy mutual funds or other investments within the account; those portions are not FDIC insured.

FDIC insurance also does not cover safe deposit boxes, cashier's checks, or wire transfers. It covers only the balance sitting in the account itself.

The difference between bank money market accounts and brokerage money market accounts

A money market account at a bank is FDIC insured. A money market account at a brokerage — even if it has the same name — is not. Brokerages use SIPC insurance instead, which protects up to $250,000 in securities and cash combined, but works differently and has gaps that FDIC insurance does not have.

At a bank, your money market account is held in the bank's name, and the bank guarantees the return of your principal. At a brokerage, your money market account is held in your name, and the brokerage is holding it on your behalf. If the brokerage fails, SIPC steps in to return your securities and cash, but the process is slower and more complex than FDIC insurance.

If you are unsure whether your money market account is at a bank or a brokerage, check your account statements or log into your account online. Banks are regulated by the Office of the Comptroller of the Currency (OCC), the Federal Reserve, or state banking regulators. Brokerages are regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

How to verify your bank is FDIC insured

Nearly all banks are FDIC insured, but not all. Before you open a money market account, you can check whether the bank is FDIC insured by visiting the FDIC's Bank Find tool at fdic.gov. Type in the bank's name and location, and the tool will tell you whether it is insured and show you the exact coverage limits.

You can also call the bank directly and ask whether it is FDIC insured. Any legitimate bank will say yes immediately. If a bank is not FDIC insured, it will tell you that, and you should understand that your deposits are not protected if the bank fails.

Your bank statements and account agreements should also state that your account is FDIC insured. Look for language like "This account is insured by the FDIC" or "FDIC insurance applies to this account."

What happens if your bank fails

If your bank fails, the FDIC takes over and pays out deposits up to the $250,000 limit. In most cases, you will have access to your money within a few business days. The FDIC will either transfer your account to another bank or send you a check.

Bank failures are rare in the United States. The FDIC has been insuring deposits since 1933, and the vast majority of banks remain solvent. Since 2008, fewer than 600 banks have failed, out of tens of thousands in operation. If you keep your balance under $250,000 at any one bank, your money is protected.

Frequently Asked Questions

If I have $300,000, how do I make sure all of it is FDIC insured?

Split it between two banks. Put $250,000 at Bank A and $50,000 at Bank B. Each bank's limit is separate, so both amounts are fully insured. You can open money market accounts at both banks and keep the money there.

Does FDIC insurance cover interest I earn in my money market account?

Yes. FDIC insurance covers the principal and any interest that has been credited to your account. If you have $100,000 in a money market account and earn $500 in interest, the full $100,500 is insured up to the $250,000 limit.

Is my money market account insured if I hold it jointly with someone else?

Yes, but the limit is higher. Joint accounts are insured separately from individual accounts. If you and another person hold a joint money market account with $250,000, and you also hold an individual money market account with $250,000 at the same bank, both are fully insured — $250,000 for the joint account and $250,000 for your individual account.

What if my money market account is at a credit union instead of a bank?

Credit union accounts are insured by the NCUA, not the FDIC, but the coverage is the same: up to $250,000 per depositor per credit union. The process works the same way if the credit union fails.

Can I lose money in a money market account if the bank fails?

No, not if your balance is under $250,000. FDIC insurance guarantees you will get your full balance back. If your balance exceeds $250,000, only the first $250,000 is insured, and you could lose the rest if the bank fails.