The Federal Deposit Insurance Corp. (FDIC) standard insurance limit hasn’t changed in more than a decade. The FDIC insurance limit has only increased seven times in its 90-year history, making each change a significant event in the American banking system.
These changes have occurred for various reasons over the years. For instance, in 1980 the limit more than doubled to $100,000 in an effort to help banks retain CD deposits and attract new funds, according to the FDIC.
Most recently, FDIC insurance was increased temporarily in October 2008, shortly after Washington Mutual became the largest bank to fail. This demonstrates how a banking crisis can trigger increases in FDIC deposit insurance limits. The $250,000 standard insurance per depositor, per insured bank for each account ownership category that we’re familiar with today was made permanent in July 2010.
Learn more: What is the FDIC, and how does it protect your money?
The evolution of FDIC insurance limits throughout history
The FDIC was created in 1933 during the Great Depression to restore public confidence in the banking system and prevent future bank panics. Since then, the insurance limits have evolved in response to economic conditions, banking crises and inflation.
| Date | Deposit Insurance Amount |
|---|---|
| June 16, 1933 | $2,500 |
| June 16, 1934 | $5,000 |
| Sept. 21, 1950 | $10,000 |
| October 1966 | $15,000 |
| Dec. 23, 1969 | $20,000 |
| Oct. 28, 1974 | $40,000 |
| March 31, 1980 | $100,000 |
| July 21, 2010 | $250,000 |
1933: FDIC established with $2,500 coverage
When President Franklin D. Roosevelt signed the Banking Act of 1933, it established the FDIC with an initial insurance limit of $2,500 per depositor. This was a direct response to the bank failures of the Great Depression, when thousands of banks collapsed and many Americans lost their savings.
1934: First increase to $5,000
Just one year after its establishment, the FDIC doubled its coverage to $5,000.
1950: Post-war increase to $10,000
Following World War II and the economic expansion that followed, Congress authorized an increase in the deposit insurance limit to $10,000. The adjustment helped account for post-war inflation and the growing size of typical bank deposits during this period.
1966: Vietnam-era adjustment to $15,000
With the Vietnam War affecting the economy and inflation becoming a concern, the insurance limit was raised to $15,000. This increase was part of broader financial regulations aimed at maintaining stability during a period of economic uncertainty.
1969: Follow-up increase to $20,000
Just three years later, Congress authorized another increase in the insurance limit to $20,000. This rapid adjustment was in response to accelerating inflation of the late 1960s.
1974: Oil crisis prompts increase to $40,000
In the wake of the 1973 oil crisis and the economic challenges that followed, the FDIC insurance limit was doubled to $40,000. This increase helped address both inflationary pressures and growing concerns about the banking system during the economic turmoil.
1980: Savings & Loan crisis leads to $100,000 coverage
The most dramatic increase in FDIC insurance came during the early stages of the Savings and Loan crisis, when the limit was raised to $100,000 – a 150 percent increase. This substantial adjustment was part of the Depository Institutions Deregulation and Monetary Control Act of 1980, which aimed to help financial institutions maintain deposits during a period of high interest rates and financial instability.
2008-2010: Great Recession prompts increase to $250,000
During the 2008 financial crisis, the Emergency Economic Stabilization Act temporarily increased the insurance limit to $250,000 to prevent bank runs as major financial institutions collapsed. This temporary measure was made permanent in July 2010 with the Dodd-Frank Wall Street Reform and Consumer Protection Act, establishing the current FDIC insurance limit that has remained unchanged since.
Learn more: Best FDIC-insured banks and credit unions
Will FDIC insurance limits increase again?
While there have been discussions about potentially increasing the FDIC insurance limit, no official changes have been announced. The current limit has remained at $250,000 per depositor, per insured bank, for each account ownership category since 2010.
Some banking experts have suggested that an increase might be warranted due to several factors:
- Inflation impact: The purchasing power of $250,000 has decreased significantly since 2010
- Recent banking concerns: The failures of Silicon Valley Bank and Signature Bank in 2023 renewed discussions about deposit protection
- Increasing deposit sizes: Average account balances have grown over time
Here’s how much of your money is FDIC insured
Currently, the standard insurance amount is $250,000 per depositor, per insured bank for each account ownership category.
The “account ownership category” portion of that wording is important because it allows you to get more FDIC insurance at that FDIC-insured bank.
For example, a husband and wife (though the two people don’t need to be married) could each have $250,000 in their individual accounts and $500,000 in a joint account and have $1 million worth of FDIC insurance at a single bank. This example assumes that this is all the money that they have at that FDIC-insured bank.
The main FDIC ownership categories include:
- Single accounts (owned by one person)
- Joint accounts (owned by two or more people)
- Certain retirement accounts (including IRAs)
- Revocable trust accounts
- Irrevocable trust accounts
- Employee benefit plan accounts
- Corporation/partnership/unincorporated association accounts
- Government accounts
Read more: How to insure your money above the FDIC limit
Bottom line
FDIC limits don’t change often. But after more than a decade of the FDIC deposit insurance amount being up to $250,000 per depositor, per FDIC-insured bank per FDIC ownership category, increasing FDIC insurance in the future could be on the table.
While banking failures and inflation could be reasons to increase the FDIC insurance limit in the future, no changes appear imminent. In the meantime, make sure your deposits stay within the current limits — or are strategically structured across multiple ownership categories — so your funds remain fully protected.
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