How Bank of America FDIC Insurance Protects Your Deposits

Bank of America deposits are covered by FDIC insurance up to $250,000 per account category, per depositor, per bank

Yes, Bank of America is an FDIC-insured bank. The Federal Deposit Insurance Corporation insures may be able to access deposits held at the bank in case of bank failure. This means if Bank of America were to fail, the FDIC would reimburse you for covered deposits up to the insurance limit.

The standard insurance limit is $250,000 per depositor, per account category, at each FDIC-insured bank. This limit has been in place since 2010 and applies to most deposit accounts. The coverage is automatic — you do not need to sign up or pay a fee for FDIC protection.

Bank of America holds FDIC insurance through membership in the Federal Deposit Insurance Corporation. You can verify this status on the FDIC's Bank Find tool at banks.data.fdic.gov, where you can search for the bank by name or location and see its insurance coverage details.

Key Takeaways

• Bank of America deposits are covered by FDIC insurance up to $250,000 per account category per depositor.
• Coverage is automatic for checking accounts, savings accounts, money market accounts, and certificates of deposit held in your name alone.
• Joint accounts, retirement accounts, and trust accounts have separate $250,000 limits, so you can hold more than $250,000 total across different account types.
• FDIC insurance protects against bank failure only, not against fraud, theft, or poor investment performance.

How the $250,000 limit works across different account types

The $250,000 FDIC insurance limit applies separately to each account category you hold at Bank of America. This means you can have more than $250,000 in total deposits and still be fully covered, as long as you do not exceed $250,000 within any single category.

A single account — a checking or savings account in your name alone — is covered up to $250,000. A joint account with another person has its own $250,000 limit, separate from your single accounts. Each account owner's share is insured separately, so a joint account with two owners can actually have up to $500,000 in coverage ($250,000 per owner).

Retirement accounts held at Bank of America, including traditional IRAs, Roth IRAs, and SEP IRAs, are covered up to $250,000 each. Trust accounts are also covered separately, up to $250,000 per beneficiary named in the trust. If you have a revocable living trust with three beneficiaries, each beneficiary's share is insured up to $250,000.

Deposits that exceed the $250,000 limit in any single category are not covered by FDIC insurance. If you hold more than $250,000 in a single checking account at Bank of America, only $250,000 is insured; the remainder is at risk if the bank fails.

What types of Bank of America accounts are FDIC insured

Most standard deposit accounts at Bank of America are FDIC insured. This includes checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). These are the accounts where you deposit money and earn interest or use a debit card.

Investment accounts are not covered by FDIC insurance. If you hold stocks, bonds, mutual funds, or brokerage accounts through Bank of America's investment division, those holdings are not protected by the FDIC. Instead, they may be protected by the Securities Investor Protection Corporation (SIPC) if the brokerage fails, but SIPC coverage is different and has different limits.

Safe deposit boxes and their contents are also not covered by FDIC insurance. If you rent a safe deposit box at Bank of America to store jewelry, documents, or other valuables, the FDIC does not insure those items if the bank fails.

What FDIC insurance does and does not cover

FDIC insurance covers your deposits only in the event that Bank of America fails and is closed by banking regulators. The insurance reimburses you for the balance you held at the time of the bank's closure, up to the $250,000 limit per account category. The FDIC takes over the bank's operations and either arranges for another bank to take over your accounts or pays you directly.

FDIC insurance does not cover losses from fraud or theft. If someone steals your debit card and withdraws money from your account, or if you are a victim of wire fraud, the FDIC does not reimburse you. You would need to report the fraud to Bank of America and work with them and law enforcement to recover the money.

FDIC insurance also does not cover losses from poor investment performance. If you hold a CD at Bank of America and interest rates drop, the FDIC does not compensate you for the lower rate. If you lose money on an investment product, the FDIC does not cover that loss.

Overdraft fees, bounced check fees, and other account charges are not covered by FDIC insurance either. The insurance protects the balance you have deposited, not the fees Bank of America charges you.

How to verify Bank of America's FDIC insurance status

You can confirm that Bank of America is FDIC insured by visiting the FDIC's official Bank Find tool at banks.data.fdic.gov. Enter "Bank of America" in the search field, select the location or branch you use, and the tool will display the bank's FDIC insurance status and coverage details.

The Bank Find tool shows you the FDIC certificate number, the date the bank joined the FDIC, and a summary of what types of accounts are covered. You can also see if there are any recent regulatory actions or changes to the bank's status.

Bank of America's main FDIC certificate number is 3948, and the bank operates under this number across all of its branches and locations in the United States. All deposits held at any Bank of America branch are covered under the same FDIC insurance protection.

What happens to your deposits if Bank of America fails

If Bank of America were to fail, the FDIC would step in when ready. The FDIC would either arrange for another bank to take over Bank of America's operations and your accounts, or the FDIC would pay you directly for your covered deposits.

In most cases, the FDIC works quickly to transfer accounts to another bank so you can continue accessing your money with minimal disruption. You would receive a new debit card and online banking access through the acquiring bank, usually within a few business days.

If no bank takes over your accounts, the FDIC pays you directly. Payments are typically made within a few weeks of the bank's closure. The FDIC pays up to $250,000 per account category, so if you held $300,000 in a single checking account, you would receive $250,000 and lose the remaining $50,000.

Frequently Asked Questions

Does FDIC insurance cover my Bank of America savings account if the bank goes out of business?

Yes, your savings account is covered up to $250,000 if Bank of America fails. The FDIC would either transfer your account to another bank or pay you directly. Coverage is automatic and requires no action on your part.

If I have $300,000 in a Bank of America checking account, how much is insured?

Only $250,000 is insured. The remaining $50,000 is not covered by FDIC insurance. To protect the full amount, you could split the money between a checking account and a savings account, or open accounts at another FDIC-insured bank, since each bank's coverage is separate.

Are Bank of America CDs covered by FDIC insurance?

Yes, certificates of deposit at Bank of America are FDIC insured up to $250,000 per CD. Each CD is covered separately, so you can hold multiple CDs totaling more than $250,000 and be fully covered as long as no single CD exceeds $250,000.

Is my Bank of America investment account covered by FDIC insurance?

No, investment accounts holding stocks, bonds, or mutual funds are not covered by FDIC insurance. These accounts may be protected by SIPC (Securities Investor Protection Corporation) if the brokerage fails, but SIPC has different coverage limits and rules than the FDIC.

Does FDIC insurance protect me if my Bank of America debit card is stolen?

No, FDIC insurance does not cover fraud or theft. If your debit card is stolen or used fraudulently, you would report it to Bank of America's fraud department. Bank of America has its own fraud protection policies separate from FDIC insurance, and federal law limits your liability for unauthorized transactions.