Quick answer: Legally, money in your own bank or brokerage account is your property, protected by specific, real rules (FDIC deposit insurance up to $250,000, SIPC brokerage protection up to $500,000) – not something that secretly belongs to someone else, though those protections do have real limits worth understanding.

What legal ownership and protection actually look like

Bank deposits are legally your property and, up to $250,000 per depositor per bank, are insured by the FDIC against the bank’s failure. Brokerage accounts are protected by SIPC up to $500,000 (including $250,000 for cash) against the brokerage’s failure – both are real, specific, and checkable protections, not marketing claims.

What the real limits actually are

Amounts above the FDIC or SIPC coverage limits at a single institution are genuinely less protected, and neither program protects against investment losses (a stock or fund declining in value) – understanding these specific limits is more useful than a vague ‘your money isn’t yours’ framing.

Frequently Asked Questions

Does holding metals in an IRA offer similar protection?

No FDIC/SIPC-style government insurance applies to precious metals; their protection is physical security and insurance at the depository, not deposit insurance.

How do I check my own coverage amount?

Use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) at fdic.gov, or ask your brokerage about its SIPC coverage.

Source: Securities Investor Protection Corporation (SIPC)

Written by Samuel, Certified Public Accountant. Published August 2026. Last updated: August 2026.