# Is Bank of America federally insured by the FDIC?

Amelia Palmer · August 4, 2026

> Bank of America is federally insured by the Federal Deposit Insurance Corporation (FDIC), which is an independent agency of the US government...

Bank of America is federally insured by the Federal Deposit Insurance Corporation (FDIC), which is an independent agency of the US government established to maintain public confidence in the nation's financial system.

The FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category, meaning that if you have multiple types of accounts, you could potentially be insured for more than $250,000.

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While Bank of America is FDIC insured, it is important to note that this insurance only covers deposit accounts, such as checking and savings accounts, and does not extend to investment products like stocks, bonds, or mutual funds.

The FDIC was created in 1933 in response to thousands of bank failures that occurred in the 1920s and early 1930s, aiming to restore trust in the American banking system.

The FDIC insurance coverage is automatic when you open an account at an FDIC-insured bank, meaning you don't need to take any additional steps to receive this protection.

As of recent data, only about 40% of Bank of America's total deposits are insured by the FDIC.

This percentage reflects the proportion of deposits held in eligible accounts compared to the total assets the bank manages.

The FDIC not only protects depositors but also conducts regular examinations of financial institutions to ensure they are operating safely and soundly, contributing to overall financial stability.

If a bank fails, the FDIC steps in to pay depositors the insured amount, typically within a few days, allowing customers to access their funds without significant delays.

The FDIC's insurance fund is funded by premiums paid by member banks, rather than taxpayer money, creating a self-sustaining insurance system.

There are different ownership categories recognized by the FDIC, including single accounts, joint accounts, retirement accounts, and trust accounts, each with its own insurance limits.

The FDIC has a robust process for determining which banks qualify for insurance, which includes strict capital requirements and adherence to regulatory guidelines.

The FDIC also provides educational resources to help consumers understand how their insurance works and how to ensure their deposits are fully protected.

Bank of America, like other banks, is required to disclose its FDIC insurance status to customers, ensuring transparency about the safety of their deposits.

While your deposits at Bank of America are insured, any amount exceeding the $250,000 limit may be at risk if the bank were to fail, emphasizing the importance of diversifying accounts across different banks for larger sums.

The FDIC insurance covers not just personal accounts but also business accounts, providing a safety net for small businesses that may rely on their deposits for daily operations.

The FDIC has a special program for certain retirement accounts, like Individual Retirement Accounts (IRAs), which are also covered up to the $250,000 limit in addition to other deposit accounts.

In the event of a bank failure, the FDIC typically arranges for another bank to take over the failed bank's deposits, allowing customers to continue banking without disruption.

The FDIC has a long history of protecting depositors, having paid out insurance to depositors in thousands of bank failures since its inception, with a notable increase during financial crises.

Bank of America is a member of the FDIC, meaning it meets the standards set by the agency and contributes to the insurance fund that protects depositors across the country.

Understanding the FDIC's coverage limits and the types of accounts that qualify can help consumers make informed decisions about where to bank and how to manage their savings effectively.

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