The Federal Deposit Insurance Corp. (FDIC) covers most types of business bank accounts, including business checking, savings and money market accounts, for up to $250,000.
This coverage is automatic as long as your deposits are held at an FDIC-insured bank. Should that bank fail, the FDIC will pay out your deposit plus any accrued interest, up to the insured limit. Business accounts at credit unions are insured via the National Credit Union Administration (NCUA).
Business account types eligible for FDIC coverage
FDIC insurance applies to deposit accounts. Other types of accounts, such as investments or Treasury bills, have other forms of protection. The Securities Investor Protection Corporation (SIPC) insures investment accounts, for example. And the U.S. government insures U.S. Treasury bills.
| Eligible | Not eligible |
|---|---|
| ✖ Stock investments. ✖ Bond investments. ✖ Mutual funds. ✖ Crypto assets. ✖ Life insurance policies. ✖ Annuities. ✖ Municipal securities. ✖ Safe deposit boxes. ✖ U.S. Treasury bills, bonds or notes. |
Business cash management accounts typically offer a mix of deposit and investment accounts. Coverage depends on where funds are allocated.
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American Express National Bank American Express® Business Checking
Bonus Amount
30,000 Points FDIC insurance limits for business accounts
The FDIC insurance limits are not per account, but rather per depositor. The standard FDIC insurance coverage is up to $250,000 per depositor, per institution, per ownership category. Ownership categories include:
| Ownership type | FDIC coverage limit | |
| Single account | Owned by one person; no named beneficiaries. | $250,000 per owner (aka depositor). |
| Joint account | Multiple owners with equal access to make withdrawals. No named beneficiaries. | $250,000 per co-owner. |
| Corporation, partnership and unincorporated association accounts | Owned by a legally organized for-profit or nonprofit company or organization, including LLCs, C-corps and S-corps. | $250,000 per corporation, partnership or unincorporated association. |
| Trust account | Single and joint accounts with named beneficiaries, including revocable and irrevocable trusts. | $250,000 per depositor per unique beneficiary. |
| Employee benefit plan account | Run by a plan administrator rather than individual participants. Includes pension plans, defined benefit plans and other employee benefit plans. | $250,000 per plan participant. |
| Certain retirement account | Individual retirement accounts and some self-directed plans, including 401(k), profit-sharing and Keogh plan accounts, that are held at an FDIC-insured financial institution. | $250,000 per owner. |
| Government account | $250,000 per official custodian. | |
Sole proprietors don't have a legal separation between themselves and their business. That means personal and business accounts at the same bank are lumped together under one $250,000 coverage limit.
The FDIC treats LLCs and incorporated businesses differently. Their deposits receive separate insurance from any personal accounts at the same bank. That's because the business is legally separate from its owners. This is true even for single-member LLCs.
🤓 Nerdy Tip
The FDIC doesn't insure each account separately. It insures the owner. If your LLC has multiple business accounts at the same bank, the balances pool together under one $250,000 limit. You can use the FDIC’s insurance estimator to gauge your coverage across business and personal accounts. How to protect business deposits above $250,000
Businesses can quickly max out FDIC coverage at a single institution — leaving the rest of their assets unprotected if the bank fails. Here are two ways to extend your coverage beyond the $250,000 limit.
Use multiple business banks
Keep accounts at separate banks — for payroll, operating funds and emergency savings. Sole proprietors should also keep personal and business accounts at different banks.
Using multiple business banks means more FDIC coverage. It also means you maintain access to funds if one account is compromised.
Use an Insured Cash Sweep account
Insured Cash Sweep accounts let you deal with one primary bank account while magic happens behind the scenes. These accounts move your funds across a network of FDIC-insured banks — with no more than $250,000 deposited at any one institution.
This process can unlock millions of dollars in FDIC coverage. Bluevine Business Checking offers FDIC insured up to $3 million via Insured Cash Sweep. Live Oak Bank Business Savings accounts can be FDIC insured for up to $10 million via Insured Cash Sweep
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Frequently Asked Questions
Is Bluevine FDIC insured?
Yes. Bluevine business bank accounts are FDIC-insured via Bluevine's partner, Coastal Community Bank. That coverage only applies if Coastal Community Bank fails.
If Bluevine itself goes bankrupt or shuts down, FDIC insurance won't automatically kick in. You'd likely still recover your money — but the process could take longer than it would through a traditional FDIC-member bank.
Are business money market accounts FDIC insured?
Business money market accounts are FDIC insured up to the standard limit of $250,000 per depositor, per institution, per ownership type.
