Are Money Market Accounts FDIC-insured?

A money market account at an FDIC-insured bank is covered up to $250,000 if the bank fails, and one at a federally insured credit union gets the same coverage from the NCUA.

A money market fund, however, is an investment, not a deposit. And it isn’t insured at all, even if you buy it through your bank.

Yes, money market accounts at insured banks are covered

A money market account at an FDIC-insured bank is insured by the Federal Deposit Insurance Corporation (FDIC). Coverage is automatic whenever a deposit account is opened at an insured bank, so you don’t have to apply for it.

At a credit union, a money market account is insured by the National Credit Union Administration (NCUA), as long as the credit union is federally insured. A few state-chartered credit unions use private insurance instead.

Both cover $250,000 per depositor, per insured bank, for each account ownership category. If your bank or credit union fails, your money is protected up to that limit.

Read more >> NCUA vs. FDIC: What’s the Difference?

Money market accounts vs. money market funds

Money market accounts

A money market account is a deposit account with features of both checking and savings. It usually pays more interest than a savings account. The FDIC’s national average is 0.63% for money market accounts and 0.37% for savings as of September 2026, while many online banks pay 3.5% or more. The national figure runs low because it’s weighted by deposit size, and the largest banks count the most.

Some banks limit how many withdrawals you can make each statement cycle, and many require a minimum balance to earn the advertised rate or avoid a monthly fee.

Money market funds

A money market fund pools money from many investors and buys short-term debt, cash, and cash equivalents, such as U.S. Treasury bills. You earn a share of the interest as dividends.

Because a fund is an investment, not a deposit, it isn’t insured by the FDIC or NCUA, even if you buy it through an insured bank. The SEC warns that you may lose some or all of the money you invested. Losses are uncommon, but the protection a deposit account has isn’t there.

Read more >> How to Create a Savings Strategy

How the $250,000 limit works

The limit applies per person, per bank, and per ownership category. An ownership category is about who owns the account, not what kind of account it is.

Your accounts at one bank share one limit. Checking, savings, money market accounts, and CDs in your name alone all fall in the same category. If you keep everything at one bank, those balances together should stay at or under $250,000 to be fully insured.

A second bank gets its own limit. With $500,000 to deposit, putting it all in one money market account at Bank A leaves $250,000 uninsured. Splitting it between Bank A and Bank B covers all of it.

A joint account is a separate category. A joint account is insured up to $250,000 per co-owner, on top of each owner’s individual accounts. So a joint money market account with a spouse or partner can be insured up to $500,000 at the same bank.

How to check that your money market account is insured

Look up the institution yourself before you deposit. Don’t rely on its website or an ad.

• Banks. Search the FDIC’s BankFind Suite, and make sure the website you’re on matches the one BankFind lists.
• Credit unions. Use the NCUA’s Credit Union Locator.
• Brokerages and apps. If the “money market” option is at a brokerage or a financial app, find out whether your cash goes into a fund or a deposit at a partner bank. Only a deposit at an insured bank is covered, and you can look up that bank in BankFind.

Read more >> How to Build an Emergency Fund

Bottom line

A money market account at an FDIC-insured bank or federally insured credit union is protected up to $250,000 per ownership category. A money market fund isn’t, wherever you buy it.

The debit card that comes with a money market account looks like a credit card, but nothing you buy with it reaches your credit report. Spending from savings doesn’t build credit history. Paying a credit account on time does. A Kikoff Credit Account reports your on-time payments to Equifax, Experian, and TransUnion, with no credit check to sign up. Plans start at $5 a month.