UPDATED APRIL 1, 2024

YOUR
INSURED
DEPOSITS

FEDERAL DEPOSIT INSURANCE CORPORATION

IMPORTANT INFORMATION ABOUT
THIS BROCHURE
Your Insured Deposits describes Federal Deposit Insurance
Corporation (FDIC) deposit insurance coverage for the
most common accounts ofered to consumers. Additional
information about deposit insurance is available on the FDIC
public website, www.fdic.gov, including Deposit Insurance
at a Glance. If you have questions about your coverage, you
can call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342).
In addition, the FDIC Electronic Deposit Insurance Estimator
(EDIE) is a simple tool that can help you calculate your deposit
insurance coverage. It is available at https://edie.fdic.gov.
Depositors should know that federal law expressly limits the
amount of insurance the FDIC can pay to depositors when an
insured bank fails, and no representation made by any person
or organization can either increase or modify that amount.
Please Note: This brochure is not intended as a legal
interpretation of the FDIC laws and regulations, nor is it
intended to provide estate planning advice. Depositors
seeking such assistance should contact a financial or
legal advisor.
The information in this brochure is based on the FDIC laws
and regulations in efect at publication. These rules can be
amended and, therefore, some of the information in this
brochure may become outdated. The online version of this
brochure, available on the FDIC website at https://www.
fdic.gov/resources/deposit-insurance/brochures/insured-
deposits/index.html, will be updated immediately, if rule
changes afecting FDIC insurance coverage are made.
For simplicity, this brochure uses the term “insured bank” to
mean any bank or savings association that is insured by the
FDIC. To check whether the FDIC insures a specific bank or
savings association:
y Call the FDIC toll-free: 1-877-ASK-FDIC (1-877-275-3342)
y Use FDIC “BankFind” at: https://banks.data.fdic.gov/
bankfind-suite/bankfind
y Look for the FDIC oficial sign where deposits are received

y Beginning January 1, 2025, look for the FDIC oficial digital

sign on bank websites, bank applications, and, where
applicable, certain bank ATMs.
FDIC-Insured – Backed by the full faith and credit of the U.S. Government
TABLE OF CONTENTS
WHAT IS THE FDIC? .......................................2

FDIC INSURANCE COVERAGE BASICS ..............2

OWNERSHIP CATEGORIES .............................3

SINGLE ACCOUNTS.................................................4

CERTAIN RETIREMENT ACCOUNTS ........................5

JOINT ACCOUNTS...................................................7

TRUST ACCOUNTS ..................................................9

EMPLOYEE BENEFIT PLAN ACCOUNTS ................14

CORPORATION/PARTNERSHIP/UNINCORPORATED
ASSOCIATION ACCOUNTS ....................................16

GOVERNMENT ACCOUNTS ...................................18

PUTTING IT ALL TOGETHER: USING MULTIPLE

OWNERSHIP CATEGORIES ........................... 19

UNIQUE OWNERSHIP SCENARIOS ................ 22

FREQUENTLY ASKED QUESTIONS ................. 25

See back cover for more resources available from the FDIC.
WHAT IS THE 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 in an insured bank. A person does not
have to be a U.S. citizen or resident to have his or
her 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 INSURANCE COVERAGE

BASICS
FDIC insurance covers depositor accounts at
each insured bank, dollar-for-dollar, including
principal and any accrued interest through the
date of the insured bank’s closing, up to the
insurance limit.
FDIC insurance covers deposits received at an
insured bank, but does not cover investments,
even if they were purchased at an insured bank.

The FDIC insures:

y Checking Accounts
y Negotiable Order of Withdrawal (NOW) Accounts
y Savings Accounts
y Money Market Deposit Accounts (MMDAs)
y Time Deposits, such as Certificates of Deposit (CDs)
y Cashier’s Checks, Money Orders, and other
oficial items issued by a bank

The FDIC does not insure:

y Stock Investments
y Bond Investments
y Mutual Funds
y Crypto Assets
y Life Insurance Policies
y Annuities

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y Municipal Securities
y Safe Deposit Boxes, or their contents
y U.S. Treasury Bills, Bonds, or Notes*
* These investments are not insured by the FDIC, but they are backed by the
full faith and credit of the U.S. government.

The standard maximum deposit insurance

amount is $250,000 per depositor, per insured
bank, for each account ownership category.
The FDIC insures deposits that a person holds in
one insured bank separately from any deposits that
the person owns in another separately chartered
insured bank. For example, if a person has a
certificate of deposit at Bank A and has a certificate
of deposit at Bank B, the accounts would each be
insured separately up to $250,000. Funds deposited
in separate branches of the same insured bank are
not separately insured.
The FDIC provides separate insurance coverage for
funds depositors may have in diferent categories
of legal ownership. The FDIC refers to these
diferent categories as “ownership categories.” This
means that a bank customer who has multiple
accounts may qualify for more than $250,000 in
insurance coverage, if the customer’s funds are
deposited in diferent ownership categories and the
requirements for each ownership category are met.

OWNERSHIP CATEGORIES
This section describes the following FDIC
ownership categories and the requirements a
depositor must meet to qualify for insurance
coverage above $250,000 at one insured bank.
y Single Accounts
y Certain Retirement Accounts
y Joint Accounts
y Trust Accounts
y Employee Benefit Plan Accounts
y Corporation/Partnership/Unincorporated
Association Accounts
y Government Accounts

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SINGLE ACCOUNTS
A Single Account is a deposit owned by one person
with no beneficiaries. This ownership category
includes:
y An account held in one person’s name only,
with no beneficiaries
y An account established for one person by
an agent, nominee, guardian, custodian, or
conservator, including Uniform Transfers to
Minors Act Accounts, Escrow Accounts, and
Brokered Deposit Accounts (See page 22 for
a discussion on pass-through accounts.)
y An account held in the name of a business that
is a sole proprietorship (e.g., a “Doing Business
As” [or DBA] account)
y An account established for or representing a
deceased person’s funds — commonly known
as a Decedent’s Estate Account
y An account that fails to qualify for separate
coverage under another ownership category
If an account title identifies only one owner, but
another person has the right to withdraw funds
from the account (e.g., as Power of Attorney or
Custodian), the FDIC will insure the account as a
Single Account.
The FDIC adds together the balances in all Single
Accounts owned by the same person at the same
bank and insures the total up to $250,000.

Note on Beneficiaries
If the owner of a Single Account has designated
one or more beneficiaries who will receive
the deposit when the account owner dies, the
account would be insured as a Trust Account.

EXAMPLE 1: Single Account

Account Deposit Account
Title Type Balance
Marci Jones MMDA $15,000
Marci Jones Savings $20,000
Marci Jones CD $200,000
Marci’s Memories
(A Sole Proprietorship) Checking $25,000
Total $260,000
Amount Insured $250,000
Amount Uninsured $10,000

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Explanation
Marci Jones has four Single Accounts at the same
insured bank, including one account in the name of
her sole proprietorship. The FDIC insures deposits
owned by a sole proprietorship as a Single Account
of the business owner. The FDIC combines the
four accounts, which equal $260,000, and insures
the total balance up to $250,000, leaving $10,000
uninsured.

CERTAIN RETIREMENT ACCOUNTS

Deposits in a retirement account are insured
under the Certain Retirement Accounts ownership
category only if the account qualifies as one of the
following:
y Individual Retirement Account (IRA):
» Traditional IRA
» Roth IRA
» Simplified Employee Pension (SEP) IRA
» Savings Incentive Match Plans for Employees
(SIMPLE) IRA
y Self-directed defined contribution plan account:
» Self-directed 401(k) plan
» Self-directed SIMPLE IRA held in the form of a
401(k) plan
» Self-directed defined contribution profit-
sharing plan
y Self-directed Keogh plan account (or H.R.10 plan
account) designed for self-employed individuals
y Section 457 deferred compensation plan account,
such as an eligible deferred compensation
plan provided by state and local governments,
regardless of whether the plan is self-directed
The FDIC adds together all deposits in retirement
accounts listed above owned by the same
person at the same insured bank and insures
the total amount up to a maximum of $250,000.
Beneficiaries can be named on these accounts,
but that does not increase the amount of the
deposit insurance coverage.
“Self-directed” means that plan participants have
the right to direct how the money is invested,
including the ability to direct that deposits be
placed at an FDIC-insured bank.

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The FDIC considers an account to be self-directed,
if a retirement plan participant has the right to
choose a particular bank’s deposit accounts as an
option. For example:
y If a plan has deposit accounts at a particular
insured bank as its default option, then the
FDIC would deem the plan to be self-directed
for insurance coverage purposes because,
by inaction, the participant has directed the
placement of such deposits.
y If a plan consists only of a single employer/
employee, and the employer establishes the
plan with a single option of deposit accounts at a
particular insured bank, then the plan would be
considered self-directed for insurance coverage
purposes.
The following types of deposits do not qualify as
Certain Retirement Accounts:
y A plan for which the only investment vehicle is
the deposit accounts of a particular bank, so that
participants have no choice of investments.
y Deposit accounts established under Section
403(b) of the Internal Revenue Code (annuity
contracts for certain employees of public schools,
tax-exempt organizations, and ministers), which
are insured as Employee Benefit Plan accounts.
y Defined benefit plan deposits (plans for which
the benefits are determined by an employee’s
compensation, years of service, and age), which
are insured as Employee Benefit Plan accounts.
y Defined contribution plans that are not self-
directed, which are insured as Employee Benefit
Plan Accounts.

EXAMPLE 2: Certain Retirement Accounts

Account Account
Title Balance
Bob Johnson’s Roth IRA $180,000
Bob Johnson’s Traditional IRA $75,000
Total $255,000
Amount Insured $250,000
Amount Uninsured $5,000

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Explanation
Bob Johnson has two diferent types of retirement
accounts that qualify as Certain Retirement
Accounts at the same insured bank. The FDIC adds
together the deposits in both accounts, which
equal $255,000. The FDIC insures the total balance
of Bob’s deposits in these certain retirement
accounts up to $250,000, which leaves $5,000 of his
deposits uninsured.

JOINT ACCOUNTS
A Joint Account is a deposit owned by two or more
people with no beneficiaries. FDIC insurance covers
joint accounts owned in any manner conforming to
applicable state law, such as joint tenants with right
of survivorship, tenants by the entirety, and tenants
in common.
To qualify for insurance coverage under
this ownership category, all of the following
requirements must be met:
1. All co-owners must be living people. Legal
entities such as corporations, trusts, estates, or
partnerships are not eligible for joint account
coverage.
2. All co-owners must have equal rights to withdraw
deposits from the account. For example, if one
co-owner can withdraw deposits on his or her
signature alone, but the other co-owner can
withdraw deposits only with the signature of
both co-owners, the co-owners would not have
equal withdrawal rights.
3. All co-owners have personally signed, which may
include signing electronically, a deposit account
signature card, or alternatively, the insured bank
has information in its deposit account records
establishing co-ownership of the account. This
requirement does not apply to CDs or accounts
established by an agent, nominee, guardian,
custodian, executor, or conservator.
If all of these requirements are met, each co-
owner’s shares of every joint account that he or
she owns at the same insured bank are added
together and the total is insured up to $250,000.
The FDIC assumes that all co-owners’ shares are
equal unless the deposit account records state
otherwise.

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The balance of a Joint Account can exceed $250,000
and still be fully insured. For example, if the same
two co-owners jointly own both a $350,000 CD and
a $150,000 savings account at the same insured
bank, the two accounts would be added together
and insured up to $500,000, providing up to
$250,000 in insurance coverage for each co-owner.
This example assumes that the two co-owners have
no other joint accounts at the bank (either together
or with any other individuals).
Insurance coverage of joint accounts is not
increased by rearranging the owners’ names or
Social Security numbers, or changing the styling
of their names.

Note on Beneficiaries
If the co-owners of a jointly held account have
designated one or more beneficiaries who will
receive the deposit when the co-owners die, the
account would be insured as a Trust Account.

EXAMPLE 3: Joint Account

Account Deposit Account Share per
Title Type Balance Owner
Mary and John Smith MMDA $230,000 $115,000
Mary or John Smith Savings $250,000 $125,000
Mary or John
or Robert Smith CD $270,000 $90,000
Total $750,000

Insurance Coverage for Each Owner is Calculated as Follows:

Total of all
Ownership Amount Amount
Owners Shares Insured Uninsured
Mary $330,000 $250,000 $80,000
John $330,000 $250,000 $80,000
Robert $90,000 $90,000 $0
Total $750,000 $590,000 $160,000

Alternating the use of “or,” “and,” or “and/or” to

separate the names of co-owners in a joint account
title, also does not afect the amount of insurance
coverage provided.

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Explanation
y The total amount in each joint account is divided
by the number of co-owners
y Mary’s ownership share in all joint accounts
equals 1/2 of the MMDA account ($115,000),
1/2 of the savings account ($125,000), and 1/3 of
the CD ($90,000), for a total of $330,000. Since her
coverage in the joint account ownership category
is limited to $250,000, $80,000 is uninsured
y John’s ownership share in all joint accounts
is the same as Mary’s, so $80,000 of John’s
deposits is uninsured
y Robert’s ownership share in all joint accounts
equals 1/3 of the CD ($90,000), so his share is fully
insured

TRUST ACCOUNTS
Trust Accounts are deposits held by one or more
owners under either an informal revocable trust
(e.g., Payable on Death (POD) and In Trust For
(ITF) accounts), a formal revocable trust, or an
irrevocable trust that names beneficiaries. Other
non-testamentary trust arrangements (e.g., Interest
on Lawyers’ Trust Accounts [IOLTAs]) are addressed
in the Pass-through Insurance section of this
brochure.
IMPORTANT: As of April 1, 2024, the maximum
insurance coverage for a trust owner with five or
more beneficiaries is $1,250,000 per owner. This
coverage change applies to both existing and
new trust accounts, including CDs (regardless
of maturity date). Depositors can name as
many beneficiaries as they wish, however the
coverage limit will not exceed $1,250,000 as of
April 1, 2024, regardless of the maturity date or
the date the CD was purchased.
For Trust Accounts, the term “owner” also means
the grantor, settlor, or trustor of the trust. If a trust
has more than one owner, each owner’s insurance
coverage is calculated separately.
Trust Accounts include:
y Informal Revocable Trusts – ofen called
payable on death, Totten trust, in trust for, or
as trustee for accounts – are created when
the account owner signs a deposit account
agreement, directing the bank to transfer the
funds in the account to one or more named
beneficiaries upon the owner’s death.

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y Formal Revocable Trusts – known as living
or family trusts – are written trusts created for
estate planning purposes. The owner controls
the deposits and other assets in the trust during
his or her lifetime. The agreement establishes
that the deposits are to be paid to one or more
identified beneficiaries upon the owner’s death.
These trusts typically become irrevocable upon
the owner’s death.
y Irrevocable Trusts are deposit accounts held
in connection with a trust established by statute
or a written trust agreement in which the owner
contributes deposits or other property to the
trust and gives up all power to cancel or change
the trust. An Irrevocable Trust also may come into
existence upon the death of an owner of a formal
revocable trust. Deposit insurance coverage for
irrevocable trust deposits is calculated in the
same manner as revocable trust deposits. The
rules no longer consider contingencies or the
grantor’s retained interest.

Coverage and Requirements for Trust

Accounts
In general, each owner of a Trust Account(s) is
insured up to $250,000 per unique (diferent)
eligible beneficiary, up to a maximum of $1,250,000
for five or more beneficiaries. A trust (either
revocable or irrevocable) must meet all of the
following requirements to be insured under the
Trust Account category.
1. Title Indicates Trust Relationship (for formal
trusts only). For formal trust accounts, including
revocable and irrevocable trusts, the account
title at the bank must indicate that the account
is held pursuant to a trust relationship. This
requirement can be met by using the terms such
as living trust, family trust, irrevocable trust, or
any similar language, including simply having
the word “trust” in the account title. The account
title includes information contained in the bank’s
electronic deposit account records.
For informal revocable trusts (e.g., POD accounts),
the account title may include POD/ITF or similar
language, but it is no longer required.
2. Beneficiaries Identified. For informal revocable
trusts, the beneficiaries must be named in the
deposit account records of the bank. For formal
trust accounts, both revocable and irrevocable,

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 beneficiaries must be identified in the formal
trust document. For a formal trust agreement, it
is acceptable for the trust to use language such
as “my issue” or other commonly used legal
terms to describe the designated beneficiaries,
provided the specific names and number of
eligible beneficiaries can be determined. The
FDIC does not limit the number of beneficiaries a
depositor may identify on a trust at a depository
institution for trust accounts even if there are
more than five beneficiaries. However, coverage
is limited to $250,000 per beneficiary up to a
maximum of $1,250,000 as described below.
3. Beneficiary Eligibility. To qualify as an eligible
beneficiary, for purposes of deposit insurance
coverage, a beneficiary must be a living person,
a charity, or a non-profit organization. If a
charity or non-profit organization is named as a
beneficiary, it must qualify as such under Internal
Revenue Service (IRS) regulations. Please note if
a single owner names the same beneficiary on
multiple trust accounts at the same bank, that
beneficiary only counts once when determining
coverage.

Trust Deposit Insurance Coverage

A trust owner’s trust deposits are insured for
$250,000 for each eligible beneficiary, up to a
maximum of $1,250,000 if five or more eligible
beneficiaries are named. This limit applies to the
combined interests of all beneficiaries the owner
has named in revocable and irrevocable trust
accounts at the same bank.
If a trust has more than one owner, each owner’s
insurance coverage is calculated separately.
Deposit insurance coverage for each trust owner
is determined by multiplying $250,000 times the
number of eligible beneficiaries, regardless of
the dollar amount or percentage allotted to each
beneficiary, with an overall maximum insurance
amount of $1,250,000 for five or more beneficiaries.
A trust owner can identify as many beneficiaries as
they like; however, for deposit insurance purposes,
a trust account owner that identifies five or more
eligible beneficiaries will not be insured beyond
$1,250,000 per bank. In calculating coverage, a
beneficiary only counts once per owner, even if the
same beneficiary is included multiple times on trust
accounts at the same bank.

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Maximum Insurance Coverage per Trust Owner
Number of Unique Maximum Deposit
Beneficiaries Insurance Coverage
1 Beneficiary $250,000
2 Beneficiaries $500,000
3 Beneficiaries $750,000
4 Beneficiaries $1,000,000
5 or More Beneficiaries $1,250,000

When calculating coverage for Trust Accounts,

the FDIC uses the formula:
# of Owners x # of Beneficiaries x $250,000 =
Amount Insured (not to exceed $1,250,000 per
owner for all trust accounts)

EXAMPLE 4: Multiple Trust Accounts, five or more beneficiaries

Account Deposit Account
Title Owner Beneficiaries Type Balance
John Jones Jack, Janet,
(Living Trust) John Ron, Sue, Bob MMDA $10,000
John Jones
(POD) John Jack, Janet Savings $20,000
John Jones
(Irrevocable IRS-
Charitable recognized
Trust) John charity CD $1,250,000
Total $1,280,000
Amount
Insured $1,250,000
Amount
Uninsured $30,000

Explanation
John Jones has three trust accounts – one formal
revocable trust, one informal revocable trust,
and one irrevocable trust at the same insured
bank. Between these three trust accounts, John
has named six eligible beneficiaries (five diferent
people and a charity). Even though six beneficiaries
are named, the maximum insurance coverage is
calculated as follows: 1 owner x 5 beneficiaries x
$250,000 = $1,250,000. John Jones has $30,000
uninsured because his total balance is $1,280,000,
which exceeds the insurance limit by $30,000.
FDIC regulations do not limit the number of
beneficiaries that a trust owner identifies for their
estate planning purposes. (In this example, John
Jones identified six.) However, when calculating

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insurance coverage, a trust owner’s per-bank
insurance limit for trust accounts is maximized
when they identify five eligible beneficiaries.

EXAMPLE 5: Multiple Trust Accounts, fewer than five

beneficiaries
Account Account Account Account
Number Owner(s) Beneficiaries Balance
Paul & Lisa Li John &
1 (Living Trust) Sharon Li $700,000
Lisa Li Sharon &
2 (POD) Bill Li $450,000

Owners Beneficiaries Share Insured Uninsured

Paul John, Sharon $350,000 $350,000 $0
John,
Lisa Sharon, Bill $ 800,000 $750,000 $50,000
Total $1,150,000 $1,100,000 $50,000

Explanation
Each owner’s share of each trust account is added
together and each owner receives up to $250,000 of
insurance coverage per eligible beneficiary.
y Paul’s share: $350,000 (50% of Account 1)
y Lisa’s share: $800,000 (50% of Account 1 and
100% of Account 2)
Because Paul named two eligible beneficiaries, his
maximum insurance coverage is $500,000 ($250,000
x 2 beneficiaries). Since his share of Account 1
($350,000) is less than $500,000, he is fully insured.
Because Lisa has named three eligible beneficiaries
between Accounts 1 and 2, her maximum insurance
coverage is $750,000 ($250,000 x 3 beneficiaries).
Since her share of both accounts ($800,000)
exceeds $750,000, she is uninsured for $50,000.
If you have a more complex trust structure, please
contact the FDIC at 1-877-275-3342.

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 Life Estate Beneficiaries
An owner who identifies a beneficiary as having
a life estate interest in a formal revocable trust
is entitled to insurance coverage up to $250,000
for that beneficiary. A life estate beneficiary is a
beneficiary who has the right to receive income
from the trust or to use trust deposits during the
beneficiary’s lifetime, where other beneficiaries
receive the remaining trust deposits afer the life
estate beneficiary dies.
For example, a husband is the sole owner of a
living trust that gives his wife a life estate interest
in the trust deposits, with the remainder going
to their two children upon his wife’s death.
Maximum insurance coverage for this account
is calculated as follows: 1 owner x $250,000 x 3
diferent beneficiaries = $750,000.

EMPLOYEE BENEFIT PLAN ACCOUNTS

An Employee Benefit Plan Account is a deposit
of a pension plan, defined benefit plan, or other
employee benefit plan that is not self-directed. An
account insured under this category must meet the
definition of an employee benefit plan in Section
3(3) of the Employee Retirement Income Security
Act (ERISA) of 1974, with the exception of plans
that qualify under the Certain Retirement Account
ownership category. The FDIC does not insure the
plan itself, but insures the deposit accounts owned
by the plan.
Additional requirements for coverage:
y The investment and management decisions
relating to the account must be controlled by
a plan administrator (not self-directed by the
participant).
y The plan administrator must maintain
documentation supporting the plan and the
beneficial interests of the participants.
y The account must be properly titled as an
employee benefit plan account with the bank.
When all of these requirements are met, the FDIC
will insure each participant’s interest in the plan
up to $250,000, separately from any accounts
the employer or employee may have in the same
FDIC-insured institution. The FDIC ofen refers to
this coverage as “pass-through coverage,” because

14
the insurance coverage passes through the
employer (agent) that established the account to
the employee who is considered the owner of the
funds.
Even when plans qualify for pass-through coverage,
insurance coverage cannot be determined simply
by multiplying the number of participants by
$250,000 because plan participants frequently have
diferent interests in the plan.
To determine the maximum amount a plan can
have on deposit in a single bank and remain fully
insured, the plan administrator must first identify
the participant who has the largest share of the
plan assets, and calculate the participant’s share
as a percentage of overall plan assets. Then, the
plan administrator must divide $250,000 by that
percentage to arrive at the maximum fully insured
amount that a plan can have on deposit at one
bank.
EXAMPLE 6: Employee Benefit Plan That Qualifies for
Pass-Through Coverage
Happy Pet Vet Clinic has a profit-sharing plan for its employees
Account Balance
Happy Pet Vet Clinic Benefit Plan $700,000

Plan Plan Share of Amount Amount

Participants Share Deposits Insured Uninsured

Dr. Todd 35% $245,000 $245,000 $0

Dr. Jones 30% $210,000 $210,000 $0
Tech Evans 20% $140,000 $140,000 $0
Tech Barnes 15% $105,000 $105,000 $0
Plan Total 100% $700,000 $700,000 $0

Explanation
This employee benefit plan’s $700,000 deposit
is fully insured. Dr. Todd’s share of the $700,000
deposit (35% of $700,000 = $245,000) is less than
$250,000. All of the other participants’ shares of the
deposit are also less than $250,000. Therefore, the
entire deposit is insured.
To determine the maximum amount this employee
benefit plan can deposit at one bank and ensure
all of the funds are fully covered, divide $250,000
by the percentage share of the plan participant
with the largest interest in the plan. In this example,

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the maximum fully insured balance for this plan
is $714,285. This amount is calculated as follows:
$250,000 divided by 35% (or 0.35) = $714,285.
Plan participants who want to know more about
how an employee benefit plan’s deposits are
insured should consult with the plan administrator.

Health and Welfare Plans

Employee benefit plan deposits that do not
qualify for pass-through coverage, such as
health and welfare plans, are insured up to
$250,000 per bank. Health and welfare plans
usually do not qualify for pass-through coverage
because the interests of the participants are not
ascertainable. A participant will receive payments
from the plan based on claims he or she files
independent of any specific ownership interest
in the plan.

CORPORATION/PARTNERSHIP/
UNINCORPORATED ASSOCIATION
ACCOUNTS
Deposits owned by corporations, partnerships,
and unincorporated associations, including for-
profit and not-for-profit organizations, as well
as “Subchapter S,” “Limited Liability (LLC),” and
"Professional (PC)" Corporations are insured under
the same ownership category. Such deposits are
insured separately from the personal deposits of
the organization’s owners, stockholders, partners,
or members.
Unincorporated associations typically insured
under this category include churches and other
religious organizations, community and civic
organizations, and social clubs.
To qualify for insurance coverage under this
ownership category, a corporation, partnership, or
unincorporated association must be engaged in an
“independent activity,” meaning that the entity is
operated primarily for some purpose other than to
increase deposit insurance coverage.
All deposits owned by a corporation,
partnership, or unincorporated association at
the same bank are combined and insured up to
$250,000.

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Accounts owned by the same corporation,
partnership, or unincorporated association,
but designated for diferent purposes, are not
separately insured.
For example, if a corporation has both an operating
account and a reserve account at the same bank,
the FDIC would add both accounts together and
insure the deposits up to $250,000. Similarly, if
a corporation has divisions or units that are not
separately incorporated, the FDIC would combine
the deposit accounts of those divisions or units
with any other deposit accounts of the corporation
at the bank and the total would be insured up to
$250,000.
The number of partners, members, stockholders, or
account signatories established by a corporation,
partnership, or unincorporated association does
not afect insurance coverage.
For example, the FDIC insures deposits owned by a
homeowners’ association at one insured bank up
to $250,000 in total, not $250,000 for each member
of the association.

Sole Proprietorship
Accounts held in the name of a sole
proprietorship are not insured under this
ownership category. Rather, they are insured as
the Single Account deposits of the owner, added
to the owner’s other Single Accounts, if any, at
the same bank and the total insured up
to $250,000.

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GOVERNMENT ACCOUNTS
The category known as Government Accounts
(also called Public Unit accounts) includes deposit
accounts owned by:
y The United States, including federal agencies
y Any state, county, municipality (or a political
subdivision of any state, county or municipality),
the District of Columbia, Puerto Rico and other
government possessions and territories
y A Native American tribe
Insurance coverage of a Government Account is
unique in that the insurance coverage extends to
the oficial custodian of the deposits belonging to
the government or public unit, rather than to the
government unit itself.
Accounts held by an oficial custodian of a
government unit will be insured as follows:
In-state accounts:
y Up to $250,000 for the combined amount of
all time and savings accounts (including NOW
accounts)
y Up to $250,000 for the combined amount of
all interest-bearing and noninterest-bearing
demand deposit accounts (since July 21, 2011,
banks have been allowed to pay interest on
demand deposit accounts)
Out-of-state accounts:
y Up to $250,000 for the combined amount of all
deposit accounts

Negotiable Order of Withdrawal (NOW) account

A Negotiable Order of Withdrawal (NOW) account
is a savings deposit – not a demand deposit
account.

To learn more about deposit insurance coverage

for Government Accounts, see the FDIC’s Fact
Sheet – Deposit Insurance for Accounts Held by
Government Depositors at:
https://www.fdic.gov/resources/deposit-insurance/
accounts-government-depositors/index.html.

18
PUTTING IT ALL TOGETHER:
USING MULTIPLE OWNERSHIP
CATEGORIES
The FDIC provides separate insurance coverage
for a depositor’s funds at the same insured bank,
if the deposits are held in diferent ownership
categories. To qualify for this expanded coverage,
the requirements for insurance coverage in each
ownership category must be met.
The example below illustrates how a husband and
wife with three children could qualify for up to
$3,500,000 in FDIC coverage at one insured bank.
This example assumes that the funds are held in
qualified deposit products at an insured bank and
these are the only accounts that the family has at
the bank.
Note: This example is intended solely to describe
the use of diferent account ownership categories
and not to provide estate planning advice.

EXAMPLE 7: Insurance Coverage for a Husband and Wife

with Deposit Accounts in Multiple Ownership Categories
Account Maximum
Ownership Insurable
Title Category Owner(s) Beneficiaries Amount

Single
Husband Account Husband $250,000
Single
Wife Account Wife $250,000
Husband Joint Husband
& Wife Account & Wife $500,000
Husband Trust
POD Account Husband Wife $250,000
Trust
Wife POD Account Wife Husband $250,000

Husband
& Wife
Formal
Revocable Trust Husband
Trust Account & Wife Child 1, 2, 3 $1,500,000

Certain
Husband Retirement
IRA Account Husband $250,000

Certain
Retirement
Wife IRA Account Wife $250,000
Total $3,500,000

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Explanation
Single Account Ownership Category
The FDIC combines all single accounts owned by
the same person at the same bank and insures the
total up to $250,000. The Husband’s single account
deposits do not exceed $250,000 so his funds are
fully insured. The same facts apply to the Wife’s
single account deposits. Both accounts are fully
insured.
Joint Account Ownership Category
Husband and Wife have one joint account at the
bank. The FDIC combines each co-owner’s shares
of all joint accounts at the bank and insures each
co-owner’s total up to $250,000. The Husband’s
ownership share in all joint accounts at the bank
equals ½ of the joint account (or $250,000), so his
share is fully insured. The Wife’s ownership share in
all joint accounts at the bank equals ½ of the joint
account (or $250,000), so her share is fully insured.
Trust Accounts Ownership Category
To determine insurance coverage for trust accounts,
the FDIC first determines the amount of the trust’s
deposits belonging to each owner. In this example:
y Husband’s share = $1,000,000 (100% of the
Husband’s POD account naming Wife as
beneficiary and 50% of the Husband and Wife
Living Trust account identifying Child 1, Child 2,
and Child 3 as beneficiaries)
y Wife’s share = $1,000,000 (100% of the Wife’s
POD account naming Husband as beneficiary
and 50% of the Husband and Wife Living Trust
account identifying Child 1, Child 2, and Child 3
as beneficiaries)
Second, the FDIC determines the number of
beneficiaries for each owner. In this example, each
owner has four unique beneficiaries (Spouse, Child
1, Child 2, and Child 3). When a trust owner names
five or fewer unique beneficiaries, the owner is
insured up to $250,000 for each unique beneficiary.
The Husband’s share of the revocable trust
deposits is insured up to $1,000,000 ($250,000 x 4
beneficiaries = $1,000,000). The Wife’s share of the
revocable trust deposits is insured up to $1,000,000
($250,000 x 4 beneficiaries = $1,000,000).
All three trust accounts are fully insured.

20
Certain Retirement Accounts Ownership
Category
The FDIC adds together all Certain Retirement
Accounts owned by the same person at the same
bank and insures the total up to $250,000. The
Husband and Wife each have an IRA deposit at the
bank with a balance of $250,000. Because each
account is within the insurance limit, the funds are
fully insured.

21
UNIQUE OWNERSHIP SCENARIOS
Pass-Through Deposit Insurance
Coverage
“Pass-through” deposit insurance is a method of
insuring depositors whose funds are placed and
held at an FDIC-insured bank through a third party.
Third parties in pass-through arrangements may
include, but are not limited to:
y Parent acting as guardian for a minor child
y Lawyer or law firm holding client funds (IOLTA)
y Executors, estate administrators, or other similar
roles
y Agents, custodians, nominees, trustees (other
than trustees of revocable or irrevocable trusts),
or fiduciaries
y Companies that ofer financial products or
services through partnerships or arrangements
with FDIC-insured banks
y Brokers who ofer brokered CDs
y Companies that place their customers’ funds
into diferent banks to help customers maximize
their deposit insurance coverage
If the following requirements are satisfied, the
deposited funds would be insured to the same
extent as if deposited at the bank in the name of
the underlying owner(s):
1. A relationship providing a basis for pass-
through coverage is expressly disclosed in the
bank’s deposit account records. This is ofen
accomplished through account titling indicating
that a deposit account is held, for example, as
agent or for the benefit of others.
2. The identity and ownership interest of each
owner is ascertainable from the bank’s deposit
account records or records maintained by the
third party (or another person or entity that has
agreed to maintain records on its behalf).
3. The underlying owners, rather than the third
party that maintains the account at the insured
bank, actually own the funds.
The FDIC determines whether these requirements
are satisfied at the time of an insured bank’s failure.

22
Deposits insured on a pass-through basis are
added to any other deposits that the owner holds
in the same ownership category at the same
bank for purposes of the deposit insurance limit.
For example, if a broker purchases a CD for a
single owner at an insured bank, and that person
maintains a separate checking account in the
Single Account category at the same bank, the two
balances would be added together and insured for
up to $250,000 in the Single Account category.

Health Savings Accounts

What is a Health Savings Account?
A Health Savings Account (HSA) is an IRS qualified
tax-exempt trust or custodial deposit that is
established with a qualified HSA trustee, such as an
FDIC-insured bank, to pay or reimburse a depositor
for certain medical expenses.
How does the FDIC insure an HSA?
An HSA, like any other deposit, is insured based
on who owns the funds and whether beneficiaries
have been named. If a depositor opens an HSA and
names beneficiaries either in the HSA agreement
or in the bank’s records, the FDIC would insure
the deposit under the Trust Account category. If a
depositor opens an HSA and does not name any
beneficiaries, the FDIC would insure the deposit
under the Single Account category. For an HSA
established by an employer for employees, the
FDIC would insure the HSA as an Employee Benefit
Plan Account.
How should an HSA be titled?
The identification of a deposit as an HSA, such
as “John Smith’s HSA,” is suficient for titling the
deposit to be eligible for Single Account or Trust
Account coverage, depending on whether eligible
beneficiaries are named.

Mortgaging Servicing Accounts

What is a Mortgage Servicing Account?
Mortgage Servicing Accounts are accounts
maintained by a mortgage servicer, in a custodial
or other fiduciary capacity, which are composed of
payments by mortgagors (borrowers) of principal
and interest (P&I).

23
How does the FDIC insure Mortgage Servicing
Accounts?
The account is insured to the mortgage investors
for the cumulative balance paid into the account by
borrowers, or in order to satisfy borrowers’ principal
or interest obligations to the lender, up to $250,000
per mortgagor. The calculation of coverage for each
P&I account is separate if the mortgage servicer
or mortgage investor has established multiple P&I
accounts in the same bank.
For example, a mortgage servicer collects from
1,000 diferent borrowers their monthly mortgage
payments of $2,000 (P&I) and places the funds
into a mortgage servicing account. The $2,000,000
aggregate balance in the mortgage servicing
account is fully insured to the lender because
each borrower’s payment of $2,000 (P&I) is insured
separately for up to $250,000.
Although mortgage servicers ofen collect tax
and insurance (T&I) payments, these accounts
are separately maintained and not considered
mortgage servicing accounts for deposit insurance
purposes. The T&I deposits belong to the
borrower’s pending payment of their real estate
taxes and/or property insurance premium to the
taxing authority or insurance company. The T&I
deposits are insured on a “pass-through” basis to
the borrowers.

24
FREQUENTLY ASKED QUESTIONS
Bank Changes
What happens to my deposits if my bank fails?
In the unlikely event of a bank failure, the FDIC acts
quickly to protect insured deposits by arranging
a sale to a healthy bank, or by paying depositors
directly for their deposit accounts up to the insured
limit.
If the FDIC finds a bank to acquire the failed
bank, it will try to arrange a Purchase and
Assumption Transaction, under which a healthy
bank acquires the insured deposits of the failed
bank. Insured depositors of the failed bank
immediately become depositors of the acquiring
bank and have access to their insured funds. The
acquiring bank may also purchase loans and other
assets of the failed bank.
It is important for account owners to note that
their deposit contract was with the failed bank
and is considered void upon the failure of the
bank. The acquiring institution has no obligation
to maintain either the failed bank's rates or terms
of the account agreement. Depositors of a failed
bank, however, do have the option of either setting
up a new account with the acquiring institution
or withdrawing some or all of their funds without
penalty.
y If the FDIC cannot find a bank to acquire the
failed bank’s deposits, the FDIC will pay the
depositors directly by check up to the insured
balance in each account. Such payments usually
begin within a few days afer the bank's closing.
What happens to my insurance coverage, if I
have deposits at two insured banks that merge?
When two or more insured banks merge, deposits
from the assumed bank are separately insured
from deposits at the assuming bank for at least six
months afer the merger. This grace period gives a
depositor the opportunity to restructure his or her
accounts, if necessary.
CDs from the assumed bank are separately insured
until the earliest maturity date afer the end of the
six-month grace period. CDs that mature during the
six-month grace period and are renewed for the
same term and in the same dollar amount (either
with or without accrued interest) continue to be

25
separately insured until the first maturity date afer
the six-month grace period. If a CD matures during
the six-month grace period and is renewed on any
other basis, it would be separately insured only
until the end of the six-month grace period.
Note that in situations of a bank failure where a
depositor already has deposits at the acquiring
bank, the six-month grace period described would
also apply to their deposits.

Death of Account Owners and

Beneficiaries
What happens to insurance coverage afer an
account owner dies?
The FDIC insures a deceased person’s accounts
as if the person were still alive for six months afer
the death of the account holder. During this grace
period, the insurance coverage of the owner’s
accounts will not change unless the accounts are
restructured by those authorized to do so. Also,
the FDIC will not apply this grace period if it would
result in less coverage.
How does the death of a beneficiary of an
informal revocable trust (e.g., POD account)
afect insurance coverage?
There is no grace period if the beneficiary of a POD
account dies. In most cases, insurance coverage for
the deposits would be reduced immediately.
For example, a mother deposits $500,000 in a
POD account at an insured bank with her two
children named as the beneficiaries in the account
records of the bank. While the owner and both
beneficiaries are alive, the account is insured up
to $500,000 ($250,000 x 2 beneficiaries = $500,000).
If one beneficiary dies, insurance coverage for the
mother’s POD account is immediately reduced to
$250,000 ($250,000 x 1 beneficiary = $250,000).
How does the death of a beneficiary of a formal
revocable trust afect the insurance coverage?
Like informal revocable trusts, the six-month grace
period does not apply to the death of a beneficiary
named in a formal revocable trust account.
However, the terms of the formal revocable
trust may provide for a successor beneficiary or
some other redistribution of the trust deposits.
Depending on these terms, the insurance coverage
may or may not change.

26
NOTES

27
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29
 FOR MORE INFORMATION FROM THE FDIC
Call toll-free
1-877-ASK-FDIC
(1-877-275-3342)
Calculate deposit insurance coverage using
the FDIC online Electronic Deposit Insurance
Estimator (EDIE)
https://edie.fdic.gov
Read more about FDIC deposit insurance online
https://www.fdic.gov/resources/deposit-insurance/
View frequently asked questions on deposit
insurance coverage
www.fdic.gov/resources/deposit-insurance/faq/
index.html
Order FDIC deposit insurance products online
https://catalog.fdic.gov
Submit deposit insurance questions online using
the Information and Support Center
https://ask.fdic.gov/
fdicinformationandsupportcenter/s/
Submit deposit insurance questions by U.S. Mail
Federal Deposit Insurance Corporation
Attn: Deposit Insurance Unit
550 17th Street, NW
Washington, DC 20429
For more deposit insurance information:

FDIC-001-2024

FEDERAL DEPOSIT INSURANCE CORPORATION