FDIC insurance insures bank deposits, not stocks or funds; a deposit at an FDIC-insured bank can be protected up to limits.
“Money market.” “Cash management.” “Sweep.” These labels can make it hard to tell what kind of account you’re holding. This page clears up one thing: what the FDIC does protect, what it doesn’t, and how to verify your own setup fast.
What FDIC Insurance Is And What It Protects
The FDIC is a U.S. government agency that insures certain deposits held at FDIC-insured banks. If an insured bank fails, the FDIC steps in to repay depositors up to the coverage limit, as long as the money is in a covered deposit product.
Covered deposit products usually include checking accounts, savings accounts, certificates of deposit (CDs), and money market deposit accounts. A “money market” that’s a mutual fund is a different product with different rules.
For the official scope and definitions, see the FDIC’s page on deposit insurance.
Deposit Products Vs Market Investments At A Glance
Use this map to match the product name you see on a statement to the protection that usually applies.
| Where Your Money Sits | Common Product Name | Typical Protection |
|---|---|---|
| FDIC-insured bank | Checking account | FDIC (up to limits, by ownership category) |
| FDIC-insured bank | Savings account | FDIC (up to limits, by ownership category) |
| FDIC-insured bank | Certificate of deposit (CD) | FDIC (up to limits, by ownership category) |
| FDIC-insured bank | Money market deposit account | FDIC (up to limits, by ownership category) |
| Brokerage | Money market mutual fund | Not FDIC; share value can move |
| Brokerage | Stocks, ETFs, mutual funds | Not FDIC; market risk applies |
| Brokerage | Brokerage “cash sweep” to bank | Often FDIC at partner bank(s), if structured as deposits |
| U.S. Treasury | Treasury bills/notes/bonds | Not FDIC; backed by U.S. government credit |
| Insurance company | Fixed annuity / variable annuity | Not FDIC; state guaranty rules may apply |
Are Any Investments FDIC Insured?
Most investments aren’t. If you’re asking “Are Any Investments FDIC Insured?”, the answer is tied to deposits, not market-priced securities like stocks, ETFs, or mutual funds.
FDIC language can still show up next to something that feels like an investment when the “investment” is actually a cash deposit or a deposit-style sweep parked at an FDIC-insured bank.
When FDIC Can Apply Inside A Brokerage Screen
Some platforms bundle spending, saving, and trading into one login. Under the hood, your cash may be routed into deposits at one or more partner banks. FDIC can apply in setups like these:
- Brokerage sweep programs: uninvested cash is swept into deposit accounts at FDIC-insured banks. Coverage depends on the bank list, your ownership category, and how much you already keep at those banks.
- Cash management accounts with partner banks: your “cash” may be split across banks behind the scenes, which can expand the total insured room when you don’t already hold deposits at the same partner banks.
- Brokered CDs: a CD issued by an FDIC-insured bank can still be FDIC-insured when bought through a brokerage.
When It Looks Like Cash But FDIC Doesn’t Apply
Other products borrow bank-style words while living in the securities bucket:
- Money market mutual funds: they often try to keep a steady price, yet they’re still investments with rules and risks.
- Stocks, bond funds, ETFs, and mutual funds: their values move. That’s the deal.
- Crypto “earn” or yield accounts: marketing can say “insured” in ways that don’t mean FDIC coverage for your balance. Read what legal entity holds the funds.
FDIC-Insured Investment Options With Clear Boundaries
Many people asking about “FDIC-insured investments” want a place to park cash with a safety net and an interest rate. For that goal, stick to deposit products.
Deposit Choices That Often Match The Intent
- High-yield savings: easy access, with rates that can change.
- Money market deposit accounts: a deposit account that may pay more than basic savings, with limited transaction features at some banks.
- CDs: a fixed term and rate at many banks, with early-withdrawal penalties. Brokered CDs can trade before maturity, and prices can move.
If the account is a deposit at an FDIC-insured bank and you’re inside coverage limits, FDIC insurance can apply.
How FDIC Limits Work Without The Headache
FDIC insurance isn’t “per account.” It’s based on the ownership category and the insured bank. The common headline is $250,000 per depositor, per insured bank, per ownership category, yet the total for a household depends on how accounts are titled.
Ownership Categories That Change The Math
These titles show up most often in everyday banking:
- Single accounts: one owner, no named beneficiaries.
- Joint accounts: two or more co-owners, with each co-owner’s share counted.
- Certain retirement accounts: some deposit IRAs at banks can fit their own category.
- Trust accounts: payable-on-death and living trust setups can raise insured totals when structured correctly.
If your balances are large, use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) and match the results to your account titles.
How To Check If Your Cash Is FDIC-Insured In 10 Minutes
This checklist works for banks, apps, and brokerages.
Step 1: Identify The Legal Holder
Find the bank name on the statement. “Member FDIC” next to a bank name is a strong clue. If the statement lists a brokerage as the account holder, you may be in a securities account even if the app calls the balance “cash.”
Step 2: Confirm The Product Type
Look for “checking,” “savings,” “CD,” or “money market deposit.” If you see “fund,” “shares,” “NAV,” or ticker symbols, it’s not a bank deposit.
Step 3: If There’s A Sweep, List The Partner Banks
Sweep programs often spread deposits across multiple banks. Find the partner bank list and compare it to banks where you already hold deposits. Your total per bank per ownership category is what matters.
Step 4: Verify The Account Title
Joint, single, and trust titles can change insurance totals. Verify the title shown in your dashboard matches your intent. A missing “joint” label or a missing beneficiary can shrink insured room.
FDIC Vs SIPC: Different Protection, Different Trigger
FDIC insurance is about bank deposits at insured banks. Brokerage accounts have a different safety net: SIPC, which can step in when a brokerage fails and customer assets are missing. SIPC does not protect you from market losses.
The SEC’s Investor.gov page on SIPC lays out what it does and doesn’t do.
Common Traps That Lead To Bad Assumptions
“Money Market” Means Two Different Products
A money market deposit account is a bank deposit. A money market mutual fund is a security. Same words, different bucket.
A Bank Brand Can Sell Non-FDIC Products
A bank can offer brokerage services. If your money is in a brokerage account buying securities, FDIC insurance doesn’t follow it.
“Up To $X Million Insured” Ads Need A Closer Read
Some cash products advertise a large FDIC total by spreading deposits across many partner banks. That can be real, yet it still has conditions. You can lose the benefit if you already keep money at a partner bank in the same ownership category.
What FDIC Doesn’t Protect Even When The Bank Is Real
FDIC insurance is tied to a bank failure. It isn’t a shield for every loss that can happen around a bank account.
If you wire money to a scammer, type the wrong account number, or get tricked into sharing a login code, FDIC doesn’t repay that loss. Your bank may still help through its own fraud process, yet that’s separate from FDIC insurance.
FDIC also doesn’t guarantee a rate, a yield, or a promotion. Rates can change, and CDs can carry early-withdrawal penalties. With brokered CDs, selling before maturity can bring a gain or a loss tied to market pricing.
Last, FDIC doesn’t turn a non-deposit into a deposit. If a screen shows a fund name, a share count, or a ticker, it isn’t an FDIC-insured product, even if you logged in through a bank app.
Practical Ways To Stay Inside FDIC Limits
If you’re far under the limit, you can stop here. If you’re close to it, these moves keep deposits inside insured bounds.
- Spread deposits across separate FDIC-insured banks: coverage is per bank, so two banks can double room in the same category.
- Use joint titling when it matches your household: joint ownership can raise totals when each co-owner’s share is tracked.
- Use eligible beneficiaries when a trust title fits: payable-on-death structures can raise insured totals when set up correctly.
- Write down your bank list: one note with each bank, account title, and balance keeps you from guessing later.
Coverage Checklist By Product Type
| Product You Hold | FDIC Applies? | What To Verify |
|---|---|---|
| Checking / savings at an FDIC-insured bank | Yes, within limits | Bank is FDIC-insured; ownership title is correct |
| CD at an FDIC-insured bank | Yes, within limits | Issuing bank is FDIC-insured; total deposits at that bank |
| Brokered CD | Yes, within limits | Issuing bank; how the brokerage titles the position |
| Money market deposit account | Yes, within limits | It’s a deposit account, not a mutual fund |
| Money market mutual fund | No | Fund name and statement details |
| Stock / ETF / mutual fund | No | Price moves are normal |
| Cash sweep program | Sometimes | Partner banks used; overlap with your other deposits |
| Annuity (fixed or variable) | No | Issuer and state guaranty rules |
| U.S. Treasury bill held at a broker | No | Custody details at the broker |
Final Check Before You Move Money
If you’re still stuck on “Are Any Investments FDIC Insured?”, check one thing: is your balance labeled as a deposit at an FDIC-insured bank, or as shares of a fund? That line tells you what rules apply.