Savings Accounts with Extended FDIC Insurance

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The standard FDIC insurance limit is $250,000. Some accounts offer a much higher FDIC limit, in some cases $5 million or more.

We’ll cover how this is possible and what to watch out for below. But first, here’s our current list of savings accounts with extended FDIC insurance coverage.

We need your help. Let us know of other accounts with extended FDIC insurance, and we’ll add them to the list.

Savings Accounts With Extended FDIC Insurance

Keep in mind that many of the financial institutions listed below are NOT FDIC-insured banks. Confused? We explain it all below.

How does Extended FDIC Insurance Coverage Work?

Some financial institutions partner with FDIC-insured banks to offer extended coverage. For example, Public (listed above) is a broker, not a bank. Yet they offer an FDIC-insured savings account. They do this by partnering with FDIC-insured banks.

As of June 2, 2024, Public partners with 24 banks. When you deposit money with Public, they are automatically swept into one or more of their partner banks. By using multiple banks, Public is able to offer an account with FDIC-insurance coverage far greater than the standard $250,000.

The other accounts listed above work in a similar way.

Don’t Exceed FDIC Limits

There is one important “gotcha” to watch out for. Remember that the FDIC-insurance limit is per account per bank. Using Public as an example again, one of their partner banks is Ally Bank.

Let’s now imagine you already have $250,000 at Ally in a savings account you set up directly with the bank. If you now deposit funds in Public’s High Yield Cash Account and that money is swept into Ally Bank, your total deposits at Ally would exceed the $250,000 insurance limit. Those excess funds will not be FDIC-insured.

For this reason, it is important to review the list of partner banks for the account you choose. Most of the above accounts allow you to exclude partner banks from your account, but you’ll want to confirm this with the financial institution you choose.

Some Common Questions I’m Asked About Excess FDIC Insurance

Do you have a direct relationship with the partner banks?

No. Your relationship is with the fintech or financial firm where you have an account.

Is my money FDIC-insured when it’s at a broker like Vanguard or Public?

No. Money held in a brokerage account has SIPC coverage, but is not FDIC-insured. FDIC insurance applies when your money is transferred to one or more partner banks.

Is there a fee for excess FDIC-insurance?

Each financial firm sets its own fee structure. Many of the accounts listed above do not charge a monthly fee. However, you may pay a “fee” in the form of a lower APY than what you would otherwise earn. Partner banks pay fees for these deposits, some of which may be kept by the financial firm and intermediaries. Still, you will earn the published APY.

Conclusion

These accounts can be a convenient way to get extended FDIC insurance. While the rates are competitive, you may find better rates on savings accounts and CDs. Be sure to confirm the terms of the account with the financial institution. We work hard to provide accurate information, but rates, fees and FDIC-insurance coverage can change daily.