Does the $250,000 FDIC Insurance Limit Apply Per Depositor?

The Federal Deposit Insurance Corporation insurance amount is $250,000 per depositor per insured bank for each account ownership category, according to its website. These categories include checking, savings and money market deposit accounts as well as certificates of deposit and retirement accounts.

FDIC insurance is backed by the full faith and credit of the U.S. government, and it is intended to protect funds deposited in banks and savings institutions. Since its creation in 1933, no depositor has lost a penny of FDIC-insured funds, according to the FDIC website. At its inception, deposits were covered up to $2,500 and have increased steadily since that time. The last adjustment was in 2008, when coverage was expanded from $100,000 to $250,000 per account.

The FDIC recognizes different categories of ownership and applies insurance to each of those categories. Deposits are guaranteed in each qualifying account up to $250,000. For example, each person in a household can hold multiple accounts at the same financial institution, and each account has its own limit. As such, it's easy to expand coverage well beyond the $250,000 threshold. On joint accounts owned by two or more people, each owner is covered up to $250,000. In short, joint accounts are covered by the number of account owners multiplied by $250,000, reports the FDIC.

Retirement accounts are included in this coverage, including Roth IRAs, traditional IRAs, simplified employee pensions, simple IRAs, Section 457 deferred compensation accounts, 410(k) plan and self-directed Keogh plans, states the FDIC.