Savings protection in the US explained: FDIC, SIPC, APY, T-bills

Short answer: keep your emergency fund in an FDIC-insured high-yield savings account (insured up to $250,000 per depositor, per bank, per ownership category). Use CDs or Treasury bills for money you need in months to a few years. Invest money you won't need for 5+ years in low-cost index funds. Crypto is high risk and has no FDIC or SIPC protection.

Updated 2026-10-16 · Sources: FDIC, SIPC, TreasuryDirect, Investor.gov

FDIC: $250,000

The FDIC insures deposits at insured banks up to at least $250,000 per depositor, per bank, per ownership category (e.g. single and joint accounts are separate categories). Check a bank with FDIC BankFind. Source: fdic.gov.

SIPC: $500,000 incl. $250,000 cash

SIPC protects customers of failed member brokerages up to $500,000, including a $250,000 limit for cash. It does not protect against market losses. Source: sipc.org.

APY

Annual Percentage Yield includes compounding. Promotional "boosts" are temporary; compare the base APY.

Treasury bills

Sold at weekly auctions; buy at TreasuryDirect.gov from $100. Interest is exempt from state and local income tax.

Index funds & expense ratios

A broad index fund owns hundreds or thousands of companies. The expense ratio is the yearly cost; lower is better over decades.

Crypto

Volatile and unprotected. Never invest your emergency fund; beware of yield products on crypto.

Compare: High-yield savings · CDs (certificates of deposit) · Treasury bills · Index funds, robo-advisors & brokers · Crypto (high risk) · quiz

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