Money market accounts held at FDIC-insured banks are covered up to $250,000 per depositor, per bank, per ownership category

Yes—but only if your account is at a bank or credit union that carries FDIC or NCUA insurance. The money market account itself is not automatically insured just because it exists. The insurance depends entirely on where you hold it.

If you open a money market account at a traditional bank that is FDIC-insured (which most are), your balance is covered up to $250,000. If you open one at a brokerage firm or investment company, it is not covered by FDIC insurance at all, even if that firm is well-known and reputable. The difference matters because money market accounts at brokerages can lose value or become inaccessible if the firm fails.

Credit unions use NCUA insurance instead of FDIC insurance, but the coverage limit and rules are the same: $250,000 per account holder per institution.

Key Takeaways

  • FDIC insurance covers money market accounts at banks up to $250,000 per person per bank, but only if the bank is FDIC-insured.
  • Money market accounts at brokerages and investment firms are not covered by FDIC insurance, even if the firm is large or well-established.
  • If you have more than $250,000 to deposit, you can spread it across multiple FDIC-insured banks to keep all of it covered.
  • Credit unions offer the same $250,000 coverage limit through NCUA insurance instead of FDIC insurance.
  • You can check whether a bank is FDIC-insured by searching the FDIC's BankFind tool on its website.

How FDIC insurance works for money market accounts

The FDIC (Federal Deposit Insurance Corporation) is a federal agency that insures deposits at member banks. When a bank fails, the FDIC steps in and pays depositors their insured balances. Money market accounts are treated like any other deposit account—savings accounts, checking accounts, and money market accounts all fall under the same $250,000 coverage limit per depositor per bank.

The $250,000 limit applies to each person, at each bank, in each ownership category. If you have a money market account in your name alone at Bank A, that account is covered up to $250,000. If you have a joint money market account with your spouse at the same bank, that joint account is covered separately up to $250,000. If you have a money market account in your name at Bank B, that is also covered up to $250,000 because it is a different bank.

The coverage is automatic—you do not need to register or pay a fee. As long as your bank is FDIC-insured and your balance is under $250,000, you are covered.

Money market accounts at brokerages are not FDIC-insured

Many investment firms and brokerages offer money market accounts or money market funds. These are not covered by FDIC insurance. The difference is that a bank money market account is a deposit product, while a brokerage money market fund is an investment product. Investment products fall outside FDIC protection.

Some brokerages carry SIPC (Securities Investor Protection Corporation) insurance instead, which covers up to $500,000 per customer per firm—but SIPC covers only certain types of losses, such as theft or firm failure. It does not cover investment losses if the value of your money market fund drops. If you want FDIC protection, you must use a money market account at an actual bank, not a brokerage.

Checking whether your bank is FDIC-insured

Most banks in the United States are FDIC-insured, but not all. Some smaller banks, credit unions, and online banks may use different insurance or none at all. You can verify your bank's status in seconds using the FDIC's BankFind tool, available on the FDIC website.

Go to the FDIC website, select BankFind, enter your bank's name, and search. The tool will show you whether the bank is FDIC-insured, which FDIC region it belongs to, and the date it was insured. If your bank does not appear in BankFind, it is not FDIC-insured, and your money market account is not covered.

If you use a credit union instead of a bank, search the NCUA's Credit Union Locator tool on the NCUA website. Credit unions are insured by the NCUA, not the FDIC, but the coverage rules are the same.

What happens if you have more than $250,000

If you have more than $250,000 to deposit, you can keep all of it insured by spreading it across multiple FDIC-insured banks. For example, if you have $500,000, you could put $250,000 in a money market account at Bank A and $250,000 in a money market account at Bank B. Both accounts would be fully covered.

You can also use different ownership categories at the same bank to increase coverage. A money market account in your name alone is insured separately from a joint money market account with your spouse at the same bank. A money market account held in trust for a beneficiary is also insured separately. Each category has its own $250,000 limit.

If you are unsure how much coverage you have, the FDIC provides a Coverage Calculator on its website. You enter your account details, and it tells you exactly how much is insured.

What FDIC insurance does and does not cover

FDIC insurance covers the balance in your money market account if the bank fails. It does not cover investment losses, fraud, or poor decisions on your part. If you move your money into a money market fund through your bank's brokerage service, that portion may not be FDIC-insured—you need to ask your bank which products are deposits and which are investments.

FDIC insurance also does not cover safe deposit boxes, cashier's checks, or money orders. It covers only deposit accounts: checking, savings, money market, and CDs. If your money market account earns interest, that interest is covered as part of your balance, up to the $250,000 limit.

NCUA insurance for credit union money market accounts

If you hold a money market account at a credit union, it is insured by the NCUA (National Credit Union Administration) rather than the FDIC. The coverage limit is the same—$250,000 per member per credit union per ownership category. The rules work the same way: if you have more than $250,000, you can spread it across multiple credit unions to keep it all covered.

You can verify that a credit union is NCUA-insured by searching the NCUA's Credit Union Locator. Most federally chartered credit unions and many state-chartered credit unions are NCUA-insured. If a credit union is not NCUA-insured, it may carry private insurance or no insurance at all.

Frequently Asked Questions

If my bank fails, when do I get my money back?

The FDIC typically deposits insured funds into your account at another bank within one to three business days. In rare cases where the transfer takes longer, the FDIC pays interest on your balance from the date of the bank failure until the funds are transferred. You do not need to do anything—the FDIC handles the process automatically.

Does FDIC insurance cover money I lose if my money market account value drops?

No. FDIC insurance covers your balance if the bank fails, not if the value of your account drops due to market conditions or poor performance. Money market accounts at banks are very stable and rarely lose value, but if they do, FDIC insurance does not protect you from that loss.

Can I have more than one money market account at the same bank and have both covered?

No. If you have two money market accounts in your name alone at the same bank, the FDIC adds them together and covers the combined total up to $250,000. However, if one account is in your name and another is a joint account with your spouse, each is covered separately up to $250,000 because they are in different ownership categories.

What if I have a money market account at an online bank?

Online banks are FDIC-insured if they are chartered as banks and are members of the FDIC. Most major online banks are FDIC-insured. You can verify this by searching BankFind on the FDIC website. If an online bank is FDIC-insured, your money market account receives the same $250,000 coverage as an account at a brick-and-mortar bank.

Is my money market account covered if I am the beneficiary of a trust?

Yes, but it is covered separately. A money market account held in trust for a beneficiary is insured up to $250,000 per beneficiary per bank, separate from any account in your name alone. If you are the beneficiary of multiple trusts at the same bank, each trust account is covered separately up to $250,000.