Date: March 15, 2012

Maximize Your FDIC Insurance

As of 2008, deposits in FDIC member banks are insured by the Federal Depository Insurance Corporation up to $250,000 per individual. Because an “individual” is defined in a number of different ways, your accounts can be insured well in excess of $250,000 at the same bank, if they are structured under different ownership forms and, if applicable, beneficiary designations.

FDIC coverage is $250,000 for the total of all single accounts owned by the same person at the same insured bank. This includes those opened under the Uniform Transfers to Minors Act, for a sole proprietorship or established for a decedent’s estate.

Joint accounts are insured up to a maximum of $250,000 for each co-owner. To reach that number each co-owners’ share of every account jointly held at the same insured bank is added together. Joint owners must be people, not legal entities such as corporations, have equal rights to withdraw funds, and sign the deposit account signature card.

All self-directed retirement funds owned by the same person in the same FDIC-insured bank are combined and insured up to $250,000.

Each participant in employee plans that are not self-directed is insured up to $250,000 for his or her non-contingent interest.

Revocable Trust Accounts, Payable-On-Death (POD) accounts, living or family trust accounts and irrevocable trusts are insured up to $250,000 for each named beneficiary as long as “qualifying” requirements are met.

FDIC uses the insured bank’s deposit account records (ledgers, signature cards, CDs) to determine deposit insurance coverage. So make sure your banks have the correct information that will result in the highest available insurance coverage. 


Paul Schatz, President, Heritage Capital