Is SGOV FDIC Insured? No. Here Is What Protects Your Money

Take an example saver with $40,000 of cash. A friend says to put it in SGOV, a Treasury bill fund at a brokerage. The saver asks one question first: is it FDIC insured like a bank account?

No. SGOV is not FDIC insured. It is a fund that owns short-term US Treasury bills. Your money is backed in a different way, and the risks are different too. Here is what protects it, and what does not.

For a full side-by-side with taxes and a worked example, see our SGOV vs high-yield savings guide.

What is SGOV?

SGOV is the ticker for the iShares 0-3 Month Treasury Bond ETF. An ETF, or exchange-traded fund, is a fund you buy and sell like a stock. iShares says the fund aims to hold US Treasury bills that are paid back within 3 months.

A Treasury bill is a short-term loan to the US government. When you buy SGOV, you own shares of the fund. You do not own a bank deposit.

Why is SGOV not FDIC insured?

The FDIC insures deposits at banks. That means checking accounts, savings accounts, money market deposit accounts and CDs. The standard limit is $250,000 per depositor, per bank, per ownership category. Ownership category means how the account is held. For example, accounts in your name alone and joint accounts are counted separately.

The FDIC lists products it does not insure. The list includes stocks, bonds, mutual funds and US Treasury bills, bonds and notes. A Treasury bill fund falls outside FDIC insurance, even if you buy it through a bank's brokerage arm.

What protects your money in SGOV instead?

Two different things protect you, and they cover different risks.

1. The US government backs the bills. The FDIC notes that Treasury bills, bonds and notes are backed by the full faith and credit of the US government. That means the government promises to repay them.

2. SIPC protects your shares if your broker fails. SIPC, the Securities Investor Protection Corporation, steps in when a member brokerage firm fails. It works to return the securities and cash in your account. The limit is $500,000 per customer, including $250,000 for cash.

Here is how the three kinds of protection compare.

What risks remain with SGOV?

The risks are small but real. Know them before you move savings.

• The price can move a little. Over the year to October 7, 2026, SGOV's share value ranged from $100.27 to $100.73. That is a range of about 0.46%, or about $184 on $40,000.
• Selling takes a step. You sell shares, wait about a business day for the sale to finish, then move the cash to your bank. A savings account transfer can be simpler.
• SIPC does not cover losses. SIPC says it does not protect against a decline in the value of your securities.
• Costs and income change. SGOV charges a yearly fee of 0.09%, about $36 on $40,000. Its income moves with Treasury bill rates. Check its current yield, and the date it was posted, on the iShares fund page.

When does an FDIC-insured account make more sense?

An FDIC-insured high-yield savings account or CD is often the better fit when:

• You may need the money soon. An emergency fund should be easy to reach and never fall in value.
• You want a guaranteed balance. A deposit up to the FDIC limit does not go down in value.
• You live in a state with no income tax. Treasury bill interest is free of state income tax. If your state has no income tax, SGOV loses that edge.
• You want a fixed rate for a set time. A CD locks in a rate. SGOV's income changes as bill rates change.

Today the best high-yield savings rate we track is not listed APY. The best 12-month CD we track pays … APY. Rates change daily, so compare them on our savings and CD pages.

SGOV can make sense for cash you will not need for a while, mostly if you pay state income tax. Interest on Treasury bills is exempt from state and local income tax. How much of a fund's income qualifies depends on its yearly tax report and your state's rules. Run the numbers after tax first, as shown in our SGOV vs high-yield savings guide.