Is your cash insured? Questions about accounts, limits and brokerage cash

"Insured" depends on four things: what kind of product holds the money, which institution holds it, how much you have there, and how the account is titled, which the FDIC calls the ownership category. This guide explains FDIC deposit insurance, gives a short NCUA pointer for credit unions, and lists questions to ask about cash that sits in a brokerage account. It does not rank banks, compare rates or recommend an account.

Key takeaways

• The FDIC says deposit insurance covers deposits at FDIC-insured banks, and only if the bank is FDIC-insured.
• The FDIC standard limit is $250,000 per depositor, per insured bank, per ownership category.
• The FDIC says it does not insure stocks, bonds, mutual funds, crypto assets, annuities or life insurance, even when sold by an FDIC-insured bank.
• Cash in a brokerage account may be held in different ways, and the SEC says some are FDIC-insured and some are not. Ask which applies.

This guide is for US readers. It is educational, not individual investment, tax or legal advice. Valora is not a registered investment adviser and is not arranging advisor matches or introductions at this time. It does not recommend an institution, an account or a product.

What the FDIC covers

The FDIC says its deposit insurance protects money in deposit accounts at FDIC-insured banks in the event of a bank failure. It says covered deposit products include:

• Checking accounts.
• Savings accounts.
• Money market deposit accounts.
• Certificates of deposit (CDs).
• Cashier's checks, money orders and other official items issued by a bank.

The FDIC also says coverage is automatic when you open a deposit account at an FDIC-insured bank. You do not apply for it.

What the FDIC does not cover

The FDIC says non-deposit investment products are not insured, even if you bought them from an FDIC-insured bank. Its list includes stock investments, bond investments, mutual funds, crypto assets, life insurance policies, annuities, municipal securities and the contents of safe deposit boxes. It says U.S. Treasury bills, bonds and notes are not FDIC-insured but are backed by the full faith and credit of the U.S. government. The FDIC says the value of investments can go up or down and you could lose money.

The FDIC also says deposit insurance does not cover the default or bankruptcy of an institution that is not FDIC-insured. So the first question is always the same: is the bank FDIC-insured? The FDIC says you can check with its BankFind tool.

How the limit works

The standard FDIC limit is $250,000 per depositor, per insured bank, per ownership category. Two parts of that matter:

• Per bank. The limit applies at each FDIC-insured bank. Two accounts at one bank are counted together if they are in the same ownership category.
• Per ownership category. The FDIC lists categories including single accounts, certain retirement accounts, joint accounts, trust accounts and business accounts. For single accounts, it says all single accounts owned by the same person at the same bank are added together and insured up to $250,000.

How your accounts fit the categories depends on how they are titled. The FDIC offers an Electronic Deposit Insurance Estimator (EDIE) and an information line for your specific situation.

Money market deposit account is not a money market fund

The SEC says money market funds should not be confused with money market deposit accounts. A money market deposit account is a bank account, and if it is held at an FDIC-insured bank, the SEC says it is insured by the FDIC up to the legal limits. The SEC says an investment in a money market fund has no FDIC insurance coverage because it is a type of mutual fund and not a bank product. Check the exact name and type on your statement.

Cash in a brokerage account

When you open an investment account, the SEC says the firm typically asks you to choose a "cash sweep program" for uninvested cash. The SEC lists three common arrangements:

• Bank sweep program. Cash goes into deposit accounts at one or more banks, which may or may not be affiliated with the firm. The SEC says these provide FDIC insurance up to the $250,000 limit per customer at each participating FDIC-insured bank, and that rates and terms vary. The FDIC says deposits held through a pass-through arrangement are added to a depositor's other accounts in the same ownership category at the same bank if pass-through insurance requirements are met, so swept cash then counts together with your other deposits there. Pass-through coverage depends on ownership, account disclosure and records.
• Money market fund sweep program. Cash goes into money market funds. The SEC says there is no FDIC insurance for these, and that the cash may be protected by SIPC.
• Cash left in the account, called a free credit balance. The firm may or may not pay interest, and the SEC says it may be protected by SIPC.

The SEC says the default for many investment firms is often a bank sweep program. It says you can move your uninvested cash even if you were automatically enrolled in a default program, and that programs can carry balance minimums or fees. FINRA makes the same point and says interest rates across these options can differ widely.

SIPC is not FDIC insurance. The FDIC describes SIPC as a non-government entity that replaces missing securities and cash in customer accounts of its member brokerages, within limits, if a member fails, and says SIPC does not protect against a loss in the value of an investment.

Credit unions: NCUA share insurance

The NCUA says share insurance at federally insured credit unions is similar to FDIC deposit insurance, is provided automatically when you join, and covers share draft accounts, share savings accounts and time deposits such as share certificates. It says individual accounts are insured up to $250,000 and lists limits by ownership type, including joint accounts, IRAs and trust accounts. It says some state-chartered credit unions are insured by private insurers whose coverage is not backed by the full faith and credit of the United States, so confirm your credit union is federally insured with the NCUA's Credit Union Locator. The NCUA does not insure stocks, bonds, mutual funds, life insurance, annuities, municipal securities, safe deposit boxes or digital assets. Use the NCUA's Share Insurance Estimator for your accounts.

Questions to ask your bank, credit union or brokerage

1. Is this institution FDIC-insured, or a federally insured credit union? Can I find it in BankFind or the NCUA locator?
2. Is this product a deposit account, or an investment product such as a fund?
3. For a brokerage account: what is my cash sweep program, and is it a bank sweep, a money market fund sweep or a free credit balance?
4. If it is a bank sweep, which banks hold my cash, and how does that fit with other accounts I have at those banks?
5. What interest rate applies, and are there minimums or fees?
6. Can I get to the money when I need it, and are there terms for withdrawing early, such as with a CD?
7. How are my accounts titled, and which FDIC ownership category does each fall in?
8. Does my sweep arrangement meet FDIC pass-through ownership, disclosure and recordkeeping requirements?

Bottom line

Check the product, the institution, the balance and the ownership category before you rely on "insured." For a bank, the FDIC standard limit is $250,000 per depositor, per insured bank, per ownership category. For a credit union, check that it is federally insured and use the NCUA's estimator. For brokerage cash, ask which sweep program you are in.

Documents to gather

• Statements for each bank and brokerage account, showing the account type and name.
• The account agreement or sweep program disclosure.
• A list of every account at each bank and how each is titled.

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Common questions

Is a CD FDIC-insured?

The FDIC lists certificates of deposit among covered deposit products at FDIC-insured banks, up to the limit for your ownership category.

Is a money market fund FDIC-insured?

No. The SEC says a money market fund is a type of mutual fund and has no FDIC insurance coverage. A money market deposit account at an FDIC-insured bank is a different product.

Is cash in my brokerage account FDIC-insured?

It depends on the cash sweep program. The SEC says bank sweep programs provide FDIC insurance up to the limit at each participating bank, and money market fund sweeps and free credit balances are not FDIC-insured but may be protected by SIPC. Ask your firm which one you have.

Are Treasury bills FDIC-insured?

The FDIC says they are not FDIC-insured, and that they are backed by the full faith and credit of the U.S. government.

What should I send through the inquiry form?

Describe the question you want to ask. Do not submit statements, account numbers or other confidential financial documents.

Sources

Federal Deposit Insurance Corporation: Understanding Deposit Insurance, Are My Deposit Accounts Insured by the FDIC? and Financial Products That Are Not Insured by the FDIC and Pass-through Deposit Insurance Coverage (date not shown, accessed October 12, 2026).

National Credit Union Administration: Share Insurance Coverage (date not shown, accessed October 12, 2026).

U.S. Securities and Exchange Commission, Investor.gov: Cash Sweep Programs for Uninvested Cash in Your Investment Accounts, Investor Bulletin (May 14, 2025).

FINRA: Don't Lose Interest: Managing Cash in Your Brokerage Account (August 21, 2023).