From rising interest rates to stock market swings, 2025 has reminded us just how fragile the economy can feel. If you’ve been wondering whether your hard-earned savings are protected, especially in times of uncertainty, you’re not alone.  

As we head into a new month, it’s a smart time to check in on the health and safety of your savings. Whether you’ve been stockpiling funds for the holidays or building an emergency cushion, here’s what you need to know to make sure your money is secure, even when the economy isn’t. 

What protections exist for my savings? 

In the U.S., your savings are typically protected by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). These agencies insure deposits at participating banks and credit unions, which means if your bank goes under, you won’t lose your money up to a certain limit. 

What’s Covered? 

• Checking and savings accounts 

• Money market accounts 

• Certificates of Deposit (CDs) 

The FDIC and NCUA each cover up to $250,000 per depositor, per institution, per ownership category. So, if you have a joint account with a spouse or partner, you’re insured for up to $500,000. 

What if I have more than $250,000 saved? 

If you’re lucky enough to have a large savings balance – say from selling a home, receiving an inheritance, or a business sale – it’s important to spread your money across multiple insured institutions. 

Let’s say you have $400,000 in savings. If you leave it all in one bank account under your name, only $250,000 is insured. But if you split it between two FDIC-insured banks, you could have $250K protected at each, giving you full coverage. 

Pro tip: Be cautious of brand names. Some banks that appear different may actually be part of the same institution. You can use the FDIC’s BankFind tool or the NCUA’s Credit Union Locator to check. 

Are investments protected too? 

 Sort of, but not in the same way. 

If you’ve got money in a brokerage account, it’s not FDIC insured. Instead, brokerage firms typically participate in SIPC (Securities Investor Protection Corporation), which protects up to $500,000 per customer, including a $250,000 cash limit, if the firm fails. 

*Important: SIPC does not protect against losses from market downturns. If your investment value drops due to market conditions, that’s just part of the risk of investing. 

What about retirement accounts? 

• 401(k)s and IRAs at banks are insured by the FDIC up to $250,000 per owner, per account type. 

• If your retirement funds are held at an investment firm, they may be covered by SIPC, but again, only if the firm fails – not due to market losses. 

If you’re nervous about volatility, now is a good time to review your asset allocation or speak with a financial advisor to ensure you’re aligned with your risk tolerance. 

How can I protect my savings right now? 

1. Double-check your accounts are FDIC- or NCUA-insured. Look for this information on your bank or credit union’s website, or search directly at fdic.gov or ncua.gov. 

1. Spread out large balances. Don’t keep more than $250K in a single institution under the same ownership type unless you’re sure it’s all covered. 

1. Watch for overlap. If you have multiple accounts at banks owned by the same parent company, they share one insurance cap. 

1. Use secure online tools. FinFit’s budget tools can help you monitor your savings and plan how to allocate funds based on your goals. 

1. Consider reducing cash drag. If you’re sitting on excess cash, consider using it to pay down high-interest debt, invest (with appropriate risk management), or make an extra mortgage payment. 

Final thought 

We can’t control the economy, but we can take steps to protect what we’ve worked so hard to build. As summer winds down and you start thinking ahead to holiday shopping and year-end planning, now is the time to make sure your savings are safe, insured, and working as hard as you do. 

Not sure how to get started? FinFit offers tools and educational resources to help you understand your financial landscape and make smart, confident decisions – no matter the economic forecast.