Bank deposits are protected by FDIC insurance and credit union deposits by NCUA insurance, each up to $250,000 per depositor, per institution, per ownership category. Treasury bills, notes, bonds and savings bonds are backed by the U.S. government. SIPC steps in when a brokerage fails and customer assets are missing, but it does not protect against investments losing value.
Which protection applies to my account?
| Account or product | What protects it | Can it lose value? |
|---|---|---|
| Checking, savings, money market deposit accounts, CDs at a bank | FDIC insurance, up to the limits (FDIC) | No, up to the insurance limit |
| Share and certificate accounts at a credit union | NCUA insurance, up to the limits (NCUA) | No, up to the insurance limit |
| Brokered CDs | FDIC insurance at the issuing bank (SEC) | Yes, if sold before it matures |
| Treasury bills, notes and bonds | Backed by the full faith and credit of the U.S. government (TreasuryDirect) | Not if held to maturity; the price can change if sold early (SEC) |
| I bonds and EE bonds | The U.S. government | No. The I bond rate never goes below zero (TreasuryDirect); an EE bond is guaranteed to double in 20 years (TreasuryDirect) |
| Money market funds | Not FDIC insured (SEC); SIPC only covers a brokerage failing | Yes, though they aim for a steady $1 share price |
| Stocks, bond funds and stock funds | Nothing beyond the investment itself; SIPC only covers a brokerage failing | Yes, and dividends can be cut (FINRA) |
What does SIPC protect?
If a SIPC-member brokerage fails and customers’ cash or securities are missing, SIPC protects up to $500,000 per customer, including up to $250,000 in cash. SIPC does not protect against investments falling in value, or against bad advice (SIPC: What SIPC Protects).
Is a Treasury bill safer than a CD?
They are protected differently. A bank CD is insured up to the FDIC limits; a Treasury bill is backed by the U.S. government with no $250,000 cap. Treasury bills mature in 4 to 52 weeks, start at $100, and their interest is taxed federally but not by states or localities (TreasuryDirect: Treasury Bills). A CD usually charges a penalty for cashing in early (FINRA). Neither one protects your money from inflation.
What does none of this protect against?
Insurance and government backing protect the number of dollars, not what those dollars will buy. Inflation can reduce buying power even when an account never loses a dollar. And no protection covers scams: FINRA warns to be suspicious of anyone who guarantees how an investment will perform or pushes you to decide immediately (FINRA: Watch for Red Flags).
Common questions
Is SIPC the same as FDIC insurance?
No. FDIC insurance covers bank deposits if a bank fails. SIPC covers missing cash and securities, up to $500,000 including $250,000 cash, if a member brokerage fails. SIPC does not cover investments losing value.
Are Treasury bills FDIC insured?
No. Treasury bills are not FDIC insured; they are backed by the full faith and credit of the U.S. government.
Sources
Each source was checked on October 8, 2026. Rules and limits can change; when it matters, check the source.
- FDIC: Understanding Deposit Insurance, updated April 1, 2024
- NCUA: Share Insurance Coverage, updated May 20, 2025
- SIPC: What SIPC Protects
- FINRA: Bank Products
- FINRA: Watch for Red Flags
- U.S. Treasury / TreasuryDirect: Treasury Marketable Securities
- U.S. Treasury / TreasuryDirect: Treasury Bills
- SEC / Investor.gov: Bonds
- U.S. Treasury / TreasuryDirect: I bonds
- U.S. Treasury / TreasuryDirect: I bond interest rates
- U.S. Treasury / TreasuryDirect: EE bonds
- SEC Office of Investor Education: Money Market Funds – Investor Bulletin, updated November 4, 2024
- SEC Office of Investor Education: Brokered CDs – Investor Bulletin, updated November 30, 2023
- FINRA: Stocks
More free guides
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