FDIC insurance coverage is currently $250,000 per depositor, per account type, per financial institution. (The FDIC, not Max, provides this insurance to depositors.)
By default, Max proposes that you direct the first $249,000 of your cash to the bank with the highest rate (so that principal plus accrued interest will keep you below the $250,000 FDIC insurance limit), the next $249,000 to the bank with the next highest rate, and so on (as pictured below.) As rates change, Max helps you direct your banks to send cash between one another so that your deposits continue to earn as much as possible, all while staying within the FDIC limits at each of your banks.
Joint accounts are insured up to $250,000 per depositor, so if you indicate that you have joint accounts, Max will help you direct up to $498,000 to each account.
Click here to use the FDIC's Electronic Deposit Insurance Estimator (EDIE) calculator to see how much coverage you may be entitled to.