FDIC Coverage

Owned by one person. This includes guardian accounts, custodian accounts, DBAs, and estate accounts.

Single Accounts

The funds are insured for 6 months after death.

What happens after an account owner dies?

This is very unlikely. However, if it happens, there are two options: 1. Most likely, the bank will be purchased by a healthy bank, and the customers' deposits will be transferred over to the new bank. The customers will have full access to their insured funds. 2. If no bank wants to acquire the failed bank, FDIC will pay the depositors directly, usually within a few days of bank closing.

What happens if a bank fails and FDIC has to kick in?

The accounts will be covered separately for at least 6 months as a grace period for the customer to restructure their accounts. CD's will be insured separately until the earliest maturity date after the 6 months.

What happens if two banks merge, and a customer has accounts at both banks?

Includes ROTH, Traditional, SEP, Simple IRAs, as well as certain 401k's and other retirement accounts.

Certain Retirement Accounts

Yes.

Does FDIC cover checking, savings, money market, and CD accounts?

No.

Does FDIC cover investments that were purchased at an insured bank?

No.

Does FDIC cover safe deposit boxes and/or their contents?

By having accounts in different ownership categories.

How can people get more than $250,000 in FDIC coverage?

Yes.

If someone has accounts at two different banks, are they insured separately at each one?

Coverage is usually limited to $250,000 because most irrevocable trusts contain conditions that affect the interests of the beneficiaries.

Irrevocable Trust Accounts

Owned by more two or more people. Each owner is considered to have an equal share, so each person can be insured up to $250,000.

Joint Accounts

The different categories of legal ownership on an account. Single, Joint, Retirement*, Revocable Trusts, Irrevocable Trusts, Employee Benefit Plan accounts, Corporations/Partnerships, Unincorporated Associations, Government Associations.

Ownership Categories

Can be changed at any time. Co-trustees and successor trustees do not count as owners and are not considered for coverage. Each individual beneficiary (ITF, POD, etc.) will give the owner(s) $250,000 in coverage. Beneficiary must be a living person, charity, or non-profit.

Revocable Trust Accounts

An independent government agency that protects depositors if a bank fails. Since 1934, no depositor has ever lost a penny of FDIC insured deposits.

What is the FDIC?