Yes, some banks and many bank-like accounts are not FDIC insured, so verify the charter and the insurance on the exact account you’re opening.
If your goal is simple—keep cash safe and available—FDIC insurance is one of the first checks to run. The snag is that “banking” labels show up on apps, brokerages, and payment products that are not deposits at an FDIC-insured bank. So the smart move is to confirm who holds the money and what the product really is.
Are Any Banks Not FDIC Insured?
Yes. Federal law recognizes “noninsured banks,” and consumers also run into services that look like banks while operating as something else. Treat the words “checking” and “savings” as marketing until you see the legal bank name and the account type in writing.
| Place You Can Put Money | FDIC Status | What To Confirm |
|---|---|---|
| Checking or savings at an FDIC-insured bank | Insured up to limits | Bank shows in BankFind; account is a deposit |
| CD at an FDIC-insured bank | Insured up to limits | CD is issued by the bank, not a brokered product |
| Money market deposit account at a bank | Insured up to limits | It’s a deposit account, not a mutual fund |
| Money market mutual fund | Not FDIC insured | It’s an investment; price can move |
| Fintech app with “banking” features | Depends | Which program bank holds deposits; pass-through terms |
| Stored value or prepaid balance | Not FDIC insured | Is it a deposit at a bank or a provider balance? |
| Credit union share account | Not FDIC (NCUA) | Credit union is federally insured by NCUA |
| Brokerage cash sweep | Depends | Sweep banks, allocations, and overlap with your other deposits |
| Foreign bank outside the U.S. | Not FDIC insured | Local deposit scheme rules and payout steps |
Banks Not FDIC Insured And Why That Happens
Most U.S. banks that take everyday deposits carry FDIC insurance, so uninsured situations usually come from one of four patterns:
- A bank that is not insured: rare for retail customers, yet possible.
- A brand that is not a bank: the app is a front end, and a separate bank holds deposits—or the funds are not deposits at all.
- A product that is not a deposit: “cash” can mean an investment account or fund.
- An account outside the U.S.: FDIC rules don’t follow your money overseas.
What FDIC Insurance Covers And What It Doesn’t
FDIC insurance covers deposit accounts held at an FDIC-insured bank: checking, savings, money market deposit accounts, and CDs. The standard cap is $250,000 per depositor, per FDIC-insured bank, per account ownership category. The cap can apply separately across categories, so account titling matters.
FDIC insurance does not cover many non-deposit products that banks may sell, like stocks, bonds, mutual funds, crypto assets, annuities, or the contents of safe deposit boxes. That doesn’t make those products “wrong.” It just means they sit under different rules.
If you want the official wording and examples, read FDIC’s Understanding Deposit Insurance.
How To Check If A Bank Is FDIC Insured
A logo in a footer isn’t enough. You want an official match between the institution in your paperwork and the FDIC’s records.
- Search the bank in an FDIC database. Use the FDIC’s BankFind Suite to confirm the bank’s status by name and location.
- Match the legal name on your disclosures. The account agreement, fee schedule, or deposit account terms should name the bank that holds your deposits. That name should line up with what you found.
What To Do With Fintech Apps
Fintech apps can be fine, but you must identify the “program bank” or “sponsor bank” that actually takes the deposit. Look for a section that says where funds are held and how the app handles pass-through coverage. If the disclosures don’t clearly name the bank and the deposit status, treat the funds as uninsured until you can verify it.
What To Do With Brokerage Cash Programs
Brokerages often sweep idle cash into deposit accounts at one or more banks. FDIC coverage can apply at each sweep bank up to the standard cap, yet overlaps are where people get burned. If you already have deposits at one of the sweep banks, your total insured amount at that bank can exceed the limit without you noticing.
Fast Red Flags That Your Money Isn’t In An FDIC Deposit
- The product description talks about “shares,” “units,” or “funds,” not deposits.
- The app can’t name the bank that holds your money.
- Your statement shows only a brand name, with no legal bank name anywhere.
- Customer emails avoid the words “deposit account” and use vague language like “balance.”
What To Do If Your Account Is Not FDIC Insured
If It’s A Bank Without FDIC Insurance
Ask for a written explanation of the bank’s insurance status, then decide if you’re willing to take on the full failure risk. Many people choose an insured institution instead.
If It’s An App Balance Or Stored Value
Stored value can be convenient for spending, but it isn’t the same as an insured deposit. Keep only what you need for near-term use and park the rest in insured deposits.
If It’s An Investment “Cash” Product
Some cash-like investments are designed to stay steady, yet they can still move. If you need a guaranteed dollar-for-dollar balance, pick deposits. If you can accept some movement, then an investment product may fit.
How FDIC Limits Work In Plain English
Even when your bank is insured, FDIC coverage has structure. The core formula is per depositor, per FDIC-insured bank, per ownership category. Multiple accounts in the same category at the same bank usually add together, not separately. Splitting money across different banks can increase insured coverage.
If you’re near the cap, list your accounts by ownership type (single, joint, retirement, trust) and total them at each bank. Then decide whether to spread funds across banks or adjust account titling where it fits your situation.
When you’re using more than one bank, keep a map: bank name, account type, ownership label, balance. Update it after moves. It’s boring, and that’s the point when you’re protecting cash for bills and savings.
| Check Before You Transfer | Good Sign | Red Flag |
|---|---|---|
| Is the institution listed as FDIC-insured? | Found in BankFind with matching name | Not found or name mismatch |
| Is the product a deposit account? | Checking, savings, CD, or MMDA | Fund, units, or “cash” investment |
| Who holds the funds in an app? | Named program bank(s) in writing | No bank named |
| Are you under $250,000 per category at that bank? | Totals below the cap | Totals exceed the cap |
| Do you already have deposits at a sweep bank? | No overlap | Overlap pushes totals over limits |
| Do statements show the bank’s legal name? | Bank name is consistent | Brand name only |
| Can you move money out on your schedule? | Standard ACH or wire options | Long holds or vague timing |
| Do you have records of disclosures? | Saved PDFs or screenshots | No documentation saved |
One Page Checklist Before You Park Cash
- Search the institution and match the legal name to your documents.
- Confirm the product is a deposit account type, not an investment.
- If it’s an app, identify the program bank(s) and how deposits are placed.
- Total balances by ownership category at each bank.
- Watch for sweep-bank overlap across your accounts.
- Save the disclosures you relied on when you opened the account.
When you run this checklist, the question “are any banks not fdic insured?” turns into a clear yes-or-no for the specific account in front of you.
One last reminder: “are any banks not fdic insured?” is a general question, but your money is always tied to a specific institution and account type. Verify those two details, and you’ll know where you stand.