The Federal Deposit Insurance Corporation (FDIC) guarantees that bank deposits up to $250,000 (through December 31, 2013) are safe. All of your single accounts at the same FDIC-insured bank are added together, and the total is insured for up to $250,000. For retirement savings accounts, the limit for FDIC insurance is $250,000. All of your self-directed retirement accounts at the same insured bank are added together, and the total is insured for up to $250,000. For additional information, see http://www.fdic.gov/deposit/deposits/dis/print/dis_english.pdf.
The National Credit Union Administration (NCUA) provides similar amounts of insurance for deposits in federally insured credit unions. The standard maximum insurance amount is $100,000, with a maximum of $250,000 of coverage for retirement accounts such as Roth and traditional IRAs and Keogh accounts.
In summary, as long as your deposits stay below the maximum amounts that are covered, your money is safe in a bank or credit union.
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