Definition
Federal protection for deposits at insured banks, standard coverage of $250,000 per depositor, per bank, per ownership category.
What it means
The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that insures deposits at member banks. If an insured bank fails, the FDIC pays depositors back up to the coverage limit, and no depositor has lost a penny of insured funds since the FDIC started in 1934. The standard amount is $250,000 per depositor, per insured bank, for each account ownership category, such as single accounts, joint accounts and certain retirement accounts. Checking, savings, money market deposit accounts and CDs are covered. Stocks, bonds, mutual funds, crypto assets, annuities and the contents of safe deposit boxes are not covered, even if you bought them at a bank. Credit unions have similar protection from the NCUA. You can check whether a bank is insured with the FDIC's BankFind tool.
Example
A married couple with a $250,000 single account each and a $500,000 joint account at the same insured bank could have $1,000,000 covered: $250,000 + $250,000 + $250,000 per co-owner on the joint account.
Illustrative numbers only. Your situation will differ.