Is It Safe to Keep All Your Deposits at One Bank?
FDIC deposit insurance is a safety net that protects your money even if a bank fails, but that protection has a ceiling. The standard limit is $250,000 per depositor, per insured bank, per ownership category. The problem is simple: if you keep more than that at a single bank, the amount above the limit isn't insured. That's why, once your savings grow into real money, spreading it across several FDIC-insured banks so every dollar sits within the coverage limit is the safer approach.
This calculator takes your total deposits and the insurance limit per bank, then tells you how many separate banks you'd need to stay fully covered and how much to place at each one evenly. It also shows the uninsured exposure you'd be carrying if you left everything in one place, so you can see the risk at a glance. Because the limit covers principal plus accrued interest together, it's safer to deposit somewhat below the limit rather than exactly at it, to leave room for interest to accumulate.
The higher the rate a bank or credit union offers, the more tempting it can be to concentrate funds there, but that's exactly when diversification matters most: don't chase the best rate at the cost of leaving part of your savings uninsured.
Frequently Asked Questions
Standard coverage is $250,000 per depositor, per bank, per ownership category. Since it varies by account type, enter your own limit here.
It covers principal plus accrued interest combined. Deposit somewhat below the limit so accumulating interest doesn't push you over.
No. Coverage applies per institution, not per branch, so deposits at the same bank are combined. Use separate FDIC-insured banks instead.
※ Coverage limits and rules can change. This is reference information only.