FDIC: Your Insured Deposits

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important update!

Reading: What is the current fdic insurance limit per bank

all rules discussed in this booklet are in effect through March 31, 2024. the rules for revocable trust accounts (including formal trusts, pod/itf) and escrow accounts The irrevocable bonds discussed in this booklet will change on April 1, 2024. For most fiat depositors (those with less than $1,250,000), the fdic expects that coverage levels will not change. Changes to the rules for mortgage servicing accounts will also go into effect on April 1, 2024. You can learn more about the new changes by reviewing this fact sheet (pdf). Additionally, we encourage depositors and bankers to review the new rules when considering opening large fiat deposits in accounts with maturities after April 1, 2024.

questions?

You can submit your inquiry through the fdic information and support center. You can also call the fdic at (877) 275-3342 or (877) ask-fdic. for the hearing impaired call (800) 877-8339.

pdf help: information on downloading and using the pdf reader.

To determine your share insurance coverage or ask any other specific questions about share insurance, call 1-877-ask-fdic (1-877-275-3342).

important information about this brochure

Your Insured Deposits is a comprehensive description of fdic deposit insurance coverage for the most common account ownership categories. this booklet is not intended to be a legal interpretation of the fdic’s laws and regulations. For additional or more specific information about FDI insurance coverage, see the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) and the FDI regulations related to insurance coverage described at 12 C.F.R. part 330.

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The information in this brochure is based on the fdic laws and regulations in effect at the time of publication. these rules are subject to change and therefore some of the information in this brochure may be out of date. The online version of this booklet, available on the fdic’s website at www.fdic.gov/deposit/deposits, will be updated immediately if rule changes affect fdic insurance coverage.

Depositors should note that federal law expressly limits the amount of insurance that the fdic can pay to depositors when an insured bank fails, and no representation made by any person or organization may increase or change that amount.

This brochure is not intended to provide advice on estate planning. depositors seeking such assistance should contact a financial or legal advisor.

For simplicity, this brochure uses the term “insured bank” to refer to any bank or savings association that is insured by the fdic. To check if the fdic insures a specific bank or savings association:

• call fdic toll free: 1-877-275-3342
• use fdic “bank find” in: bankfind
• look for the fdic sign where deposits are received

what is fdic?

The fdic, short for the federal deposit insurance corporation, is an independent agency of the united states government. The fdic protects depositors of insured banks located in the united states against the loss of their deposits if an insured bank fails.

Any person or entity can have fdic insurance coverage at an insured bank. A person does not have to be a US citizen or resident to have their deposits insured by the FDIC.

fdic insurance is backed by the full faith and credit of the united states government. Since the fdic began operations in 1934, no depositor has ever lost a penny of fdic-insured deposits.

fdic coverage basics

fdic insurance covers depositors’ accounts at each insured bank, dollar for dollar, including principal and any interest earned through the insured bank’s closing date, up to the limit of insurance.

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fdic insurance covers all types of deposits received at an insured bank, but it does not cover investments, even if purchased at an insured bank.

what the fdic covers

• checking accounts
• negotiable order to withdraw (now) accounts
• savings accounts
• Money Market Deposit Accounts (MMDAs)
• term deposits such as certificates of deposit (cds)
• cashiers checks, money orders and other official items issued by a bank

what the fdic does not cover

• stock investments
• bond investments
• mutual funds
• crypto assets
• life insurance policies
• annuities
• municipal values
• safe deposit boxes or their contents
• united states treasury bills, bonds, or notes*

*these investments are backed by the full faith and credit of the us. uu. government.

The standard amount of deposit insurance is $250,000 per depositor, per insured bank, for each category of account ownership.

the fdic insures the deposits a person has in one insured bank separately from the deposits the person has in another independent insured bank. For example, if a person has a Certificate of Deposit with Bank A and a Certificate of Deposit with Bank B, each amount would be separately insured up to $250,000. funds deposited at separate branches of the same insured bank are not separately insured.

the fdic provides separate insurance coverage for funds that depositors may hold in different categories of legal ownership. The fdic refers to these different categories as “property categories.” This means that a bank client who has multiple accounts can qualify for more than $250,000 in insurance coverage if the client’s funds are deposited in different property categories and the requirements for each property category are met.

property categories

This section describes the following fdic property categories and the requirements a depositor must meet to qualify for insurance coverage greater than $250,000 at an insured bank.

• individual accounts
• certain retirement accounts
• joint accounts
• revocable trust accounts
• irrevocable trust accounts
• employee benefit plan accounts
• corporation/partnership/unincorporated association accounts
• government accounts

individual accounts

a single account is a deposit owned by a single person. this property category includes:

• an account held in the name of a single person, provided the owner has not designated a beneficiary who is entitled to receive the funds upon the death of the account owner
• an account established for a person by an agent, representative, guardian, custodian, or conservator, including uniform transfers to juvenile law accounts, escrow accounts, and brokered deposit accounts
• an account held in the name of a company that is a sole proprietor (for example, a “doing business as” or dba account)
• an account established for or representing the funds of a deceased person, commonly known as a decedent’s estate account
• a grantor’s retained interest in an irrevocable trust
• an account that does not qualify for separate coverage under another ownership category

If the title to an account identifies only one owner, but another person has the right to withdraw funds from the account (eg, as a proxy or custodian), the fdic will insure the account as a sole proprietorship account.

the fdic adds up all individual accounts owned by the same person at the same bank and insures the total up to $250,000.

Note on Beneficiaries: Assuming all record-keeping requirements for a revocable bank trust are met, if the owner of a single account has designated one or more beneficiaries who will receive the deposit when the account owner account dies, the account will be insured as a revocable trust account.

example 1: single account

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