SUMMARY OF FDIC INSURANCE DEPOSIT LIMITS ACCOUNT TYPE/LIMITATIONS Banks Covered COVERAGE - EXPLANATION To determine if a bank is covered, one can call toll-free 1-877-275-3342, use "Bank Find" at www.fdic.gov/deposit/index.html, or look for the official FDIC sign where deposits are received. All deposits at insured banks, including checking (demand deposit accounts), NOW (checking accounts that earn interest) savings accounts that can be added to or withdrawn from at any time, money market deposit accounts, and certificates of deposit (CDs), up to the insurance limit. The basic insurance amount is $100,000 per depositor per insured bank. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor per insured bank. All single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, a checking account in the name of John Jones and a CD in the name of John Jones at the same bank will be added together and only the first aggregate $100,000 is covered (subject to exceptions for certain retirement accounts and trust accounts). Retirement accounts that qualify for $250,000 per depositor per insured bank limit are: (a) Individual Retirement Accounts (IRAs) including traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plans for Employees (SIMPLE) IRAs, Section 457 deferred compensation plan accounts (whether self-directed or not), Self-directed defined contribution plan accounts, Self-directed Keogh plan (or H.R. 10 plan) accounts. The naming of or the number of beneficiaries for such an account is not relevant.
Types of Accounts Covered
General Coverage Limits
Single Account Limits
Retirement Accounts
Joint Accounts (Including Joint Tenants with the Right of Survivorship, as Tenants in Common or as Tenants by the Entirety)
For qualifying joint accounts, where each account holder has an equal right to withdraw from the account, the account is allocated to each account holder in equal shares, for purposes of $100,000 limits per deposit per insured bank. For example, if Fred Smith and Mary Smith have a joint account with a balance of $240,000 at PBK Bank, and no other accounts at that bank, $200,000 is the total amount insured, and $40,000 is not insured. To use these rules, all of the joint owners must be natural persons, and each joint owner has signed a signature card (subject to some exceptions), $100,000 of coverage per insured bank is provided for each nonowner named qualified beneficiary who succeeds to the account at death of the owner. No additional coverage is provided for the owner. If a beneficiary also is a beneficiary under a revocable trust at an insured bank, all such beneficiary accounts are aggregated so only $100,000 is insured no matter how many accounts name a given person as a beneficiary. The beneficiary must be identified by name in the bank’s records. The account title must indicate that it is a covered type of account, such as by using the acronyms POD or ITF. Qualfied beneficiaries are limited to the owner's spouse, child, grandchild, parent, or sibling. Adopted and stepchildren, grandchildren, parents, and siblings also qualify. In-laws, grandparents, great-grandchildren, cousins, nieces and nephews, friends, organizations (including charities), and trusts do not qualify. Similar $100,000 per nonowner named qualified beneficiaries, applying the foregoing Payable on Death Account rules. The account title must indicate the existence of the trust relationship by including a term such as in trust for, trust, living trust, or family trust. Each life-estate holder and each remainder-man will be deemed to have equal interests in the trust assets for deposit insurance purposes. Deposits held by an insured depository institution as trustee of an irrevocable trust, whether held in its trust department, held or deposited in any other department of the fiduciary institution, or deposited by the fiduciary institution in another insured depository institution, shall be insured up to the insured limits for each owner or beneficiary represented. This insurance shall be separate from, and in addition to, the insurance provided for any other deposits of the owners or the beneficiaries.
Payable on Death Accounts - Totten Trusts - Itf (In Trust For) Accounts
Revocable Trusts/living Trusts
Irrevocable Trusts - Deposit Institution as Trustee
Other Irrevocable Trusts
Deposited funds representing the ``non-contingent trust interest(s)'' of a trust beneficiary under one or more irrevocable trust agreements created by the same settlor(s)/grantor(s) are added together and insured up to the single limits in the aggregate. This coverage is separate from the coverage provided for other accounts maintained by the settlor(s), trustee(s) or beneficiary(ies) of the irrevocable trust(s) at the same insured depository institution. Funds held for noncontingent trust interests are added together and insured up to the single limits in the aggregate. A deposit in one insured bank can receive $100,000 in coverage for all of his or her singleowner accounts, $100,000 in coverage for his or her interest in joint owner accounts, and $100,000 in coverage as a beneficiary of a POD/revocable trust account. The death of a deposit owner shall not affect the insurance coverage of the deposit for a period of six months following the owner's death unless the deposit account is restructured. These accounts generally treat the principal as the owner, for purposes of coverage rules. Such entities and associations are insured, and their accounts are not aggregated with accounts of their owners so long as they conduct “independent activities.” However, branches, divisions, or units of a single corporation will be treated as one owner. Deposit insurance applies equally to U.S. citizens, U.S. residents, and nonresidents of the U.S. Any deposit accounts maintained by a depositor at one insured depository institution are insured separately from, and without regard to, any deposit accounts that the same depositor maintains at any other separately chartered and insured depository institution, even if two or more separately chartered and insured depository institutions are affiliated through common ownership. The deposit accounts of a depositor maintained in the same right and capacity at different branches or offices of the same insured depository institution are not separately insured.
Multiple Types of Accounts
Deceased Depositor Agency, Nominee, Guardian or Conservator Accounts Corporations, Partnerships, and Unincorporated Associations Foreigners Separate Banks
Foreign Currency Accounts
Deposits denominated in a foreign currency are insured, up to the equivalent dollar value limitations. Deposits of banks payable solely at an office outside of the U.S. are not insured.
For Further Information: See 12 CFR Part 330. Disclaimer: The foregoing is a general summary of applicable rules, is provided for general informational purposes only, is not legal advice, and should not be relied upon in determining insured coverage amounts. For more definitive guidance, depositors should consult with a qualified professional or advisor. © 2008, All Rights Reserved, Charles Rubin www.floridatax.com - www.rubinontax.blogspot.com