Last updated: October 2025
If you’re thinking about putting savings into a money market account, a top question is: are money market accounts FDIC insured? The quick answer is: yes — if the account is a deposit at an FDIC-insured bank (or NCUA-insured credit union). Read on for the full explanation, limits, important differences between money market accounts and money market funds, and tips to keep your money protected.
What is a Money Market Account?
A money market account (also called a money market deposit account or MMDA) is a bank deposit product that typically pays higher interest than a standard savings account and may allow limited check-writing or debit-card access. Because it is a deposit product (not an investment), it can qualify for deposit insurance when held at an insured institution.
Are Money Market Accounts FDIC Insured?
Yes — when the account is a deposit at an FDIC-insured bank. The FDIC insures deposit accounts (including money market deposit accounts) at member banks automatically. At credit unions, similar protection is provided by the NCUA.
What the FDIC Covers
- The FDIC insures deposit accounts such as checking, savings, money market deposit accounts, and certificates of deposit (CDs).
- If an FDIC-insured bank fails, the FDIC reimburses depositors for insured amounts (principal plus accrued interest up to the bank’s closing date).
Coverage Limits
- The standard FDIC insurance limit is $250,000 per depositor, per insured bank, per ownership category.
- Accounts in the same ownership category at the same bank are aggregated for insurance purposes (for example, multiple individual deposit accounts you own at one bank add together toward the $250,000 limit).
- You can increase total protection by using different ownership categories (individual vs. joint vs. trust) or by using multiple FDIC-insured banks.
When Money Market Accounts Are NOT FDIC Insured
Important: money market funds are different from money market deposit accounts. Money market funds are investment products offered by brokerage firms and mutual fund companies and are not FDIC insured. They invest in short-term securities (Treasuries, commercial paper, etc.) and can fluctuate in value. If you hold money market funds in a brokerage account, SIPC protection (if applicable) covers brokerage insolvency, not market losses.
Common Pitfalls & Tips
- Don’t rely on the name alone. “Money market” in the name doesn’t guarantee FDIC coverage — verify whether it’s a deposit account (MMDA) or a money market fund.
- Watch the $250,000 limit. If you have more than $250,000 in one ownership category at the same bank, amounts above $250,000 are uninsured.
- Check sweep and deposit networks. Brokerages and fintechs sometimes use sweep programs or deposit networks that move cash into partner banks. Those swept deposits may be FDIC insured, but the details and coverage depend on the program mechanics — confirm with the provider.
- Credit unions: Accounts at credit unions are protected by the NCUA (similar limits), not the FDIC.
How to Verify Coverage
- Check the bank’s FDIC membership on the FDIC BankFind tool or on the bank’s website.
- Read account disclosures carefully to confirm whether the product is a deposit account or an investment product.
- If you use a sweep program or multi-bank deposit network, ask the provider for written details about how deposits are held and insured.
Conclusion
Money market deposit accounts at FDIC-insured banks are insured up to $250,000 per depositor, per bank, per ownership category. However, money market funds (investment products) are not FDIC insured. Always confirm the account type and the institution’s insurance status, and plan account ownership or use multiple institutions if you need coverage above $250,000.
Sources & Further Reading
- FDIC — What’s Insured: https://www.fdic.gov/resources/deposit-insurance/financial-products-insured
- FDIC — Deposit Insurance FAQs: https://www.fdic.gov/resources/deposit-insurance/faq
- Consumer Financial Protection Bureau — What is a money market account?: https://www.consumerfinance.gov/ask-cfpb/what-is-a-money-market-account-en-1007/
- Vanguard — What are money market funds?: https://investor.vanguard.com/investor-resources-education/mutual-funds/what-are-money-market-funds
- Fidelity — Money market funds (overview): https://www.fidelity.com/learning-center/investment-products/mutual-funds/what-are-money-market-funds
- Insured Cash Sweep (ICS) — overview: https://en.wikipedia.org/wiki/Insured_Cash_Sweep
