Q&A

Your Insured Deposit

questions 

and answers

about your

insured deposit

from the 

Federal Deposit

Insurance

Corporation
Table of Contents Question(s)

▼ General Questions 1-9

▼ Basic Insurance Limit 10-11

▼ Single Ownership Accounts 12-15

▼ Joint Accounts 16-22

▼ Testamentary (Payable-On-Death)

Accounts 23-29

▼ Revocable Living Trusts 30-32

▼ Irrevocable Trusts 33-34

▼ Retirement Accounts 35-37

▼ Executor, Custodial, and Agent Accounts 38-41

▼ Business Accounts 42

▼ Deposits in Merged Institutions 43

FOREWORD

This booklet describes the deposit insurance

coverage provided by the Federal Deposit Insurance

Corporation (FDIC) to depositors of insured banks

and insured savings associations. The FDIC is an

independent agency of the U.S. Government. It

was established by Congress in 1933 to insure bank

deposits, help maintain sound conditions in our

banking system, and protect the nation’s money

supply in case of financial institution failure. FDICinsured deposits are backed by the full faith and

credit of the United States.
General Insurance Questions

1. Whose deposits does the FDIC insure?

Any person or entity can have FDIC insurance

on a deposit. A depositor does not have to be a

United States citizen, or even a resident of the

United States.

2. What types of financial institutions are

insured by the FDIC?

The FDIC insures deposits in some, but not all,

banks and savings associations.

FDIC-insured institutions must display an official

sign at each teller window or teller station. Insured

savings associations display the official savings association (eagle) sign. Insured banks display either

the official bank (FDIC) sign or the official savings

association (eagle) sign. Both signs are shown at the

end of this booklet.

3. What does federal deposit insurance cover?

In the event of a bank failure, federal deposit

insurance protects deposits that are payable in the

United States. Deposits that are only payable overseas, and not in the United States, are not insured.

Securities, mutual funds, and similar types of

investments are not covered by deposit insurance.

Creditors (other than depositors) and shareholders

of a failed bank or savings association are not protected by federal deposit insurance.

4. What types of deposits are insured?

All types of deposits received by a financial institution in its usual course of business are insured.

For example, savings deposits, checking deposits,

deposits in NOW accounts, Christmas Club

accounts, and time deposits (including certificates

of deposit, which are sometimes called “CDs”) are

all insured deposits. Cashiers’ checks, officers’

checks, expense checks, loan disbursement checks,

interest checks, outstanding drafts, negotiable

instruments and money orders drawn on the institution also are insured. Collectively, these types of

instruments are referred to as “official checks.”

Certified checks, letters of credit, and travelers’

checks, for which an insured depository institution

is primarily liable, also are insured when issued in

exchange for money or its equivalent, or for a

charge against a deposit account.

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?
5. Does federal deposit insurance cover

Treasury securities?

Treasury securities (bills, notes, and bonds) purchased by an insured depository institution on a

customer’s behalf are not insured by the FDIC.

However, they remain the property of the customer.

When an insured financial institution is closed and

the FDIC is named its receiver, the customer has

two options. First, the customer can present a

receipt documenting to the FDIC’s satisfaction his

or her ownership rights. The FDIC as receiver will

give the customer a release that the customer can

present to a Federal Reserve Bank or the

Department of the Treasury to prove ownership.

Alternatively, the FDIC as receiver can hold all

Treasury securities and make a distribution upon

maturity in the same manner and extent as the

closed institution would have done.

6. If I have deposits in several different FDICinsured institutions, will my deposits be added

together for insurance purposes?

No. Deposits in different institutions are insured

separately. But, if an institution has one or more

branches, the main office and all branch offices are

considered to be one institution. So, if you have

deposits at the main office and at one or more

branch offices of the same institution, the deposits

are added together when calculating deposit insurance coverage. Financial institutions owned by the

same holding company, but separately chartered,

are separately insured.

7. How does the FDIC determine ownership

of funds?

The FDIC presumes that funds are owned as

shown on the “deposit account records” of the

insured depository institution. If the FDIC determines that the deposit account records of the institution are unambiguous, those records are binding

on the depositor. No other records are considered

in determining legal ownership.

Generally, the FDIC will not recognize a fiduciary relationship (e.g., trustee, agent, nominee,

guardian, executor, custodian, or conservator)

unless the relationship is specifically disclosed in

the deposit account records. Also, the details of the

fiduciary relationship and the interests of the par-
ties in the account must be ascertainable one of

two ways: either from the deposit account records

of the depository institution or from records maintained in good faith and in the regular course of

business by the depositor, or by some person or

entity that has agreed to maintain records for the

depositor.

8. What are “deposit account records”?

The “deposit account records” of an insured

depository institution are account ledgers, signature

cards, certificates of deposit, passbooks, and certain

computer records. However, account statements,

deposit slips, items deposited, and cancelled checks

are not considered deposit account records for purposes of calculating deposit insurance.

9. Is there continuation of deposit insurance

coverage after a depositor dies?

Yes. Starting July 1, 1998, for six months after

the death of a deposit owner, the FDIC will insure

that person’s accounts as if he or she were still

alive. During this “grace period,” the insurance coverage of the deposit owner’s accounts will not

change unless the accounts are restructured by

those authorized to do so. The FDIC applies the

grace period only if its application would increase,

rather than decrease, deposit insurance coverage.

Example: A and B own a qualifying joint account

of $100,000 for which they each have a right of survivorship. B also has a single ownership (or individual) account of $100,000 at the same FDIC-insured

institution. If A dies, for six months after A’s death

the FDIC will still insure the A and B account as a

joint account, even though B, as A’s survivor, has

inherited A’s ownership interest in the account.

Without the grace period, B’s increased ownership

interest in the joint account would be added to his

or her single ownership account and insured to a

limit of $100,000.

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Basic Insurance Limit

10. What is the amount of FDIC insurance

coverage?

The basic insured amount of a depositor is

$100,000. Accrued interest through the date of the

financial institution’s closing (failure) is included

when calculating insurance coverage.

Deposits maintained in different categories of

legal ownership are separately insured. So, you can

have more than $100,000 insurance coverage in a

single institution.

The most common categories of ownership are

single (or individual) ownership, joint ownership,

and testamentary accounts. Separate insurance is

also available for funds held for retirement purposes, e.g., Individual Retirement Accounts, Keoghs,

and pension or profit-sharing plans (see Questions

35, 36 and 37).

11. Can I increase FDIC insurance coverage

by dividing my funds and depositing them into

several different accounts?

No. Federal deposit insurance is not determined

on a per-account basis. You cannot increase FDIC

insurance by dividing funds owned in the same

ownership category among different accounts. The

type of account - whether checking, savings, certificate of deposit, or outstanding official check such as

a cashier’s check (see Question 4), or other form of

deposit - has no bearing on the amount of insurance coverage. Furthermore, the use of Social

Security numbers or tax identification numbers

does not determine insurance coverage.

Single Ownership Accounts

12. What is a single ownership account?

A single (or individual) ownership account is an

account owned by one person. Such accounts

include those in the owner’s name; those established for the benefit of the owner by agents, nominees, guardians, custodians, or conservators; and

those established by a business that is a sole proprietorship.

13. How is a single ownership account

insured?

All single ownership accounts established by, or

for the benefit of, the same person are added
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? together. The total is insured up to a maximum of

$100,000, including principal and interest.

14. What if I deposit funds in my own name,

but then give another person the right to 

withdraw funds from my account?

If an individual owns and deposits funds in his 

or her own name, but then gives another person

the right to withdraw funds from the account, the

account will be insured as a joint ownership

account. There are two exceptions to this rule.

First, withdrawals by a person other than the owner

are permitted pursuant to a Power of Attorney.

Second, withdrawals by a person other than the

owner are permitted if the deposit account records

clearly indicate, to the FDIC’s satisfaction, that the

funds are owned by one person and that the other

signatory is authorized to withdraw funds only on

the owner’s behalf.

Example of Insurance for Single Ownership

Accounts

The following example shows the maximum

amount of deposit insurance coverage available for

the most common types of single ownership

accounts.

Type of Amount

Depositor Deposit Deposited

A Savings account $ 25,000

A CD $100,000

A NOW account $ 25,000

A’s Restaurant

(a sole proprietorship) Checking $ 25,000

TOTAL DEPOSITED $175,000

MAXIMUM AMOUNT OF 

INSURANCE AVAILABLE $100,000

UNINSURED AMOUNT $ 75,000

15. What is the Uniform Gifts to Minors Act?

The Uniform Gifts to Minors Act is a state law

that allows an adult to make an irrevocable gift to a

minor. Funds given to a minor by this method are

held in the name of a custodian for the minor’s benefit. Funds deposited for the minor’s benefit under

the Act are added to any other single ownership

accounts of the minor, and the total is insured up to

a maximum of $100,000.
Joint Accounts

16. What is a joint account?

A joint account is an account owned by two or

more individuals.

17. How are joint accounts insured?

Joint accounts are insured separately from single

ownership accounts if all of the following conditions

are met:

•All co-owners must be natural persons. This

means that legal entities such as corporations or

partnerships are not eligible for joint account

deposit insurance coverage.

•Each of the co-owners must have a right of

withdrawal on the same basis as the other co-owners. For example, if one co-owner can withdraw

funds on his or her signature alone, but the other

co-owner can withdraw funds only on the signature

of both co-owners, then this requirement has not

been satisfied; the co-owners do not have equal

withdrawal rights. Likewise, if a co-owner’s right to

withdraw funds is limited to a specified dollar

amount, the funds in the account will be allocated

between the co-owners according to their withdrawal rights and insured as single ownership

funds. So, for example, if $100,000 is deposited in

the names of A and B, but A has the right to withdraw only up to $5,000 from the account, $5,000 is

allocated to A and the remainder is allocated to B.

The funds, as allocated, are then added to any other

single ownership funds of A or B, respectively. 

•Each of the co-owners must have personally

signed a deposit account signature card. The execution of an account signature card is not required

for certificates of deposit, deposit obligations evidenced by a negotiable instrument, or accounts

maintained by an agent, nominee, guardian, custodian, or conservator, but the deposit must in fact be

jointly owned.

18. What is the rule for determining joint

account coverage?

The interests of each individual in all joint

accounts he or she owns at the same FDIC-insured

depository institution are added together and

insured up to $100,000 maximum. Each person’s

interest (or share) in a joint account is deemed

equal unless otherwise stated on the deposit

account records. 
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Example of Insurance for Joint Ownership

Accounts

Four qualifying joint accounts are owned by A,

B, C and D, as follows:

Account Owners Balance

#1 A and B $100,000

#2 B and A $ 25,000

#3 A and B and C $ 75,000

#4 D and A $ 80,000

Each owner’s ownership interests in these four

joint accounts follow:

A’s Ownership Interest

1/2 of the balance in account #1 $ 50,000

1/2 of the balance in account #2 $ 12,500

1/3 of the balance in account #3 $ 25,000

1/2 of the balance in account #4 $ 40,000

Total of A’s ownership interest: $127,500

A’s ownership interest in the joint account category is limited to $100,000, so $27,500 is uninsured. 

B’s Ownership Interest

1/2 of the balance in account #1 $ 50,000

1/2 of the balance in account #2 $ 12,500

1/3 of the balance in account #3 $ 25,000

Total of B’s ownership interest: $ 87,500

B’s ownership interest in the joint account category is $87,500. That amount is less than the

$100,000 maximum, so it is fully insured.

C’s Ownership Interest

1/3 of the balance in account #3 $ 25,000

Total of C’s ownership interest: $ 25,000

C’s ownership interest in the joint account category is $25,000. That amount is less than the

$100,000 maximum, so it is fully insured.

D’s Ownership Interest

1/2 of the balance in account #4 $ 40,000

Total of D’s ownership interest: $ 40,000

D’s ownership interest in the joint account category is $40,000. That amount is less than the

$100,000 maximum, so it is fully insured.
Summary of Insurance Coverage:

Insured Uninsured

A $100,000 $ 27,500 

B $ 87,500 -0-

C $ 25,000 -0-

D $ 40,000 -0-

Total $252,500 $ 27,500

19. Does the use of different Social Security

numbers affect the coverage of joint accounts?

No. As noted earlier, the use of Social Security

numbers does not determine insurance coverage,

nor does rearranging the owners’ names, changing

the style of the names, or using “or” rather than

“and” to join the owners’ names in a joint account

title.

20. What types of joint accounts are insured?

Federal deposit insurance covers joint accounts

owned in any manner conforming to applicable

state law, such as joint tenants with a right of survivorship, tenants by the entireties, and tenants in

common. 

21. What is the effect of community property

laws?

Community property laws do not affect deposit

insurance coverage. In states recognizing this form

of ownership, an account in the sole name of one

spouse will be insured as the single ownership

account of that spouse. Separately, a qualifying

joint account in the names of both spouses will be

insured as a joint account. 

22. What happens when an account fails to

qualify for separate insurance in the joint

account category?

A deposit account held in two or more names

that does not qualify for joint account deposit

insurance coverage is treated as being owned by

each named owner as an individual, corporation,

partnership, or unincorporated association, as the

case may be, according to each co-owner’s actual

ownership interest. As such, each owner’s interest

is added to any other single ownership accounts or,

in the case of a corporation, partnership, or unincorporated association, to other accounts of such

entity, and the total is insured up to $100,000.
Testamentary (Payable-On-Death)

Accounts

23. What is a testamentary account?

A testamentary account is an account that evidences an intention that the funds will belong to a

named beneficiary upon the death of the owner

(grantor or depositor) of the testamentary account.

Testamentary accounts are sometimes known as

tentative or “Totten” trust accounts, revocable trust

accounts, or “payable-on-death” accounts.

24. How are testamentary accounts insured?

Testamentary accounts make up another legal

ownership category and are, therefore, insured separately from single ownership accounts and joint

accounts of the beneficiary or the owner. In order

to qualify for this separate insurance coverage,

however, a testamentary account must meet all of

the following requirements:

•The named beneficiary must be the owner’s

spouse, child, grandchild, parent, brother, or sister.

(“Child” includes a biological child, adopted child,

and stepchild of the owner. “Grandchild” includes

a biological child, adopted child, and stepchild of

any of the owner’s children. “Parent” includes a

biological parent, adoptive parent, and stepparent of

the owner. “Brother” includes a full brother, half

brother, brother through adoption, and stepbrother.

“Sister” includes a full sister, half sister, sister

through adoption, and stepsister.)

•The owner’s intention that, upon his or her

death, the funds shall belong to the named beneficiary must be shown in the title of the account

using commonly accepted terms such as “in trust

for,” “as trustee for,” or “payable on death.” These

terms may be abbreviated as “ITF,” “ATF,” or

“POD.”

•The beneficiaries must be specifically identified

by name in the deposit account records of the

depository institution.

Each owner meeting these requirements is

insured up to $100,000 per qualifying beneficiary at

each insured institution.

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25. Can a testamentary account have more

than $100,000 in insurance coverage?

Yes. If a testamentary account is maintained by

co-owners, insurance will be determined as if each

co-owner maintained a separate testamentary

account for each beneficiary. The co-owners’ interests are deemed to be equal unless otherwise stated

in the deposit account records. If there are several

beneficiaries, their interests are deemed to be equal

unless otherwise specified in the deposit account

records.

Example of Insurance for Testamentary Accounts

Amount Amount

Account Deposited Insured

Husband in Trust for Wife $100,000 $100,000

Wife in Trust for Husband $100,000 $100,000

Husband and Wife in Trust $600,000 $600,000

for Child One, Child Two,

and Child Three

Husband in Trust for $200,000 $200,000

Brother and Parent

Total $1,000,000 $1,000,000

26. What is the insurance coverage for an

account established by a husband and wife in

trust for themselves (“husband and wife in

trust for husband and wife”)?

An account established by a husband and wife

solely for their benefit is treated as a joint account,

not a testamentary account. Funds deposited in

such an account are added to any other joint ownership funds held by the husband or wife.

27. What is the insurance coverage for a testamentary account where the beneficiary is not

the parent, sibling, spouse, child, or grandchild of the owner?

If a beneficiary of a testamentary account is not

the parent, sibling, spouse, child, or grandchild of

the owner, the funds attributable to the nonqualifying beneficiary are insured as the owner’s single

ownership funds. For example, if A establishes a

testamentary account for the benefit of his friend (a

nonqualifying beneficiary), all of the funds in the

account are added to any other single ownership

funds owned by A and the sum is insured to a maximum of $100,000.
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When a testamentary account is maintained by

multiple owners for multiple beneficiaries, and

some beneficiaries qualify for separate insurance

coverage but others do not, the funds are first 

divided between the co-owners, and then again

divided between the beneficiaries as to each coowner. Funds attributable to the nonqualifying

beneficiary are then added to any other single 

ownership funds of each respective owner.

Assume, for example, that B establishes a testamentary account for the benefit of her daughter

and nephew. Deposit insurance coverage is calculated by first allocating one-half of the funds to the

daughter and one-half of the funds to the nephew.

The funds allocated to the daughter (a qualifying

beneficiary) are then insured separately from B’s

single ownership accounts or joint accounts.

However, the funds allocated to the nephew (a nonqualifying beneficiary) are added to any other single

ownership funds owned by B and the sum is

insured up to a maximum of $100,000.

28. Must testamentary accounts be supported

by a written trust agreement?

No. If an insured depository institution should

fail, however, the owner of the testamentary

account may be required to provide proof of the

owner’s relationship to the beneficiaries.

29. Does deposit insurance coverage decrease

upon the death of one of the co-owners of a

testamentary account?

Yes. Each co-owner is entitled to insurance coverage as to each beneficiary only during the coowner’s lifetime. Upon the death of any one of the

co-owners, insurance coverage decreases (subject

to the “grace period” explained below). When both

co-owners of a revocable trust die, the funds in the

account are insured as the single ownership funds

of the beneficiary. If there are multiple beneficiaries, the funds are insured as joint ownership funds.

Starting July 1, 1998, for six months after the

death of a deposit owner, the FDIC will insure that

person’s accounts as if he or she were still alive.

During this “grace period,” the insurance coverage

of the deposit owner’s accounts will not change

unless the accounts are restructured by those

authorized to do so. The FDIC applies the grace

period only if its application would increase, rather

than decrease, deposit insurance coverage.
Revocable Living Trusts

30. What is a revocable living trust?

A trust is a means by which an individual transfers legal ownership of funds to a trustee with the

intention that the funds will be used by the trustee

for the benefit of a designated person. A revocable

living trust is one in which the trust’s grantor

reserves the right to revoke the trust. A revocable

living trust is established through a written trust

document. (Testamentary accounts are a special

type of revocable living trust and are discussed in

Questions 23 through 29.)

31. How is a revocable living trust insured?

Revocable living trust funds are insured as the

individual funds of the grantor unless they meet the

special requirements for separate coverage of testamentary accounts. (See Question 32.) This means

that funds deposited under the provisions of a revocable living trust will be added to any other single

ownership funds of the grantor and the total will be

insured up to a maximum of $100,000. If a revocable living trust has been created by more than one

grantor, funds deposited pursuant to the trust will

be treated as the individually owned funds of each

such grantor. The trust funds will be divided

between the grantors, added to any other single

ownership funds of each such grantor, and the sum

will be insured up to $100,000 per owner. Under

certain circumstances, however, the trust funds are

insured as the jointly owned funds of the grantors.

(See Question 32).

32. Can funds deposited pursuant to a revocable living trust document ever be insured separately from the individually owned funds of the

grantor(s)?

Funds deposited pursuant to a revocable living

trust may be separately insured from the grantor’s

individually owned funds if the revocable living

trust document and the deposit account records

satisfy the requirements of testamentary accounts.

In this situation, the grantor would be insured up to

$100,000 for each qualifying beneficiary. The

requirements follow:

•The trust document must provide that the

funds will belong to the named beneficiary upon the
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grantor’s death. Revocable living trust documents

often fail to satisfy this requirement because they

usually contain provisions that may prevent the

beneficiary from receiving all of the deposited 

trust funds upon the grantor’s death. 

•The named beneficiary must be the grantor’s

spouse, child, grandchild, parent, or sibling. Funds

deposited pursuant to a revocable living trust 

established by a husband and wife solely for their

benefit are treated as joint ownership funds. Such

funds are added to any other joint ownership funds

held by the husband or wife.

•The grantor’s intention that, upon his or her

death, the funds will belong to the named beneficiary must be shown in the title of the account. This

may be accomplished by depositing the funds in the

name of the trust.

•Each beneficiary must be specifically named in

the deposit account records of the depository institution. It is not sufficient to designate a class of

beneficiaries, such as “grandchildren.”

If the revocable living trust document and supporting deposit account records fail to satisfy any of

the above requirements, funds deposited pursuant

to the revocable living trust will be insured as the

single ownership funds of the grantor(s) or in some

cases as the jointly owned funds of the grantors.

Irrevocable Trusts

33. How are irrevocable trust funds insured?

Irrevocable trusts are another legal ownership

category. The interest of each beneficiary in an

account established under an irrevocable trust is

insured up to $100,000, separately from other

accounts held by the grantor, trustee, or beneficiary, if all of the following requirements are met:

•The deposit account records of the depository

institution must disclose the existence of the trust

relationship.

•The interests of the beneficiaries must be ascertainable from the deposit account records of the

depository institution or from the records of the

trustee maintained in good faith and in the regular

course of business.

•The value of each beneficiary’s interest must be

determinable according to FDIC regulations.
•The trust must be valid under state law.

Kinship is not a factor in determining coverage of

irrevocable trusts.

In cases where the beneficiary has an ownership

interest in more than one trust created by the same

grantor, the beneficiary’s interests in all accounts

established under those trusts are added together

and the sum is insured to a maximum of $100,000.

34. What if the beneficiaries or their interests

in such a trust cannot be ascertained?

When the ownership interests of the beneficiaries cannot be determined, insurance coverage for

the entire trust is limited to a maximum of

$100,000.

Retirement Accounts

35. How are funds deposited in Individual

Retirement Accounts (IRAs) and Keoghs

insured?

IRA and Keogh funds are separately insured from

any non-retirement funds the depositor may have

at an institution. But IRA and self-directed Keogh

funds will be added together, and the combined

total will be insured up to $100,000. IRA and selfdirected Keogh funds will also be aggregated with

certain other retirement funds, namely, those

belonging to other self-directed retirement plans,

and those belonging to so-called “457 Plan”

accounts, if the deposits are eligible for passthrough insurance (see Question 37). The “457

Plans” are deferred compensation plans conforming

to section 457 of the Internal Revenue Code that

are established by state and local governments and

nonprofit organizations.

IRA and Keogh time deposits made before

December 19, 1993, are insured separately from

each other and from any other funds of the depositor. Such funds, however, become subject to the

aggregation rules explained above when the

deposits mature, roll over, or are renewed.

36. How are the new Roth IRA and Education

IRA insured?

Although subject to different tax treatment

under the Internal Revenue Code, the new Roth

IRA is treated the same as a traditional IRA for

deposit insurance purposes. So, if a depositor has
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both a Roth IRA and a traditional IRA at an 

insured depository institution, the funds in those

accounts would be added together and insured as

explained in Question 35. The new “Education

IRA,” however, is not considered an IRA for 

deposit insurance purposes. Because of the 

required features of the account, an Education 

IRA is treated, for deposit insurance purposes, as 

an irrevocable trust account. So, the FDIC insures

an Education IRA under the rules for irrevocable

trust accounts explained in Question 33 of this

pamphlet.

37. What is the deposit insurance coverage for

pension plans and profit-sharing plans?

The general rule is that deposits belonging to

pension plans and profit-sharing plans receive

“pass-through insurance,” meaning that each participant’s ascertainable interest in a deposit–as

opposed to the deposit as a whole–is insured up to

$100,000.

In order for a pension or profit-sharing plan to

receive pass-through insurance, the institution’s

deposit account records must specifically disclose

the fact that the depositor (i.e., the plan itself or its

trustee) holds the funds in a fiduciary capacity. In

addition, the details of the fiduciary relationship

between the plan and its participants, and the participants’ beneficial interests in the account, must

be ascertainable from the institution’s deposit

account records or from the records that the plan

(or some person or entity that has agreed to maintain records for the plan) maintains in good faith

and in the regular course of business.

The general rule applies to:

•Any deposit made by a pension or profit-sharing

plan in any institution if the deposit was made

before December 19, 1992.

•Any new deposit made by a plan on or after

December 19, 1992, if the deposit is made in an

institution that meets the FDIC’s standards for

“well-capitalized” institutions. Rollovers and

renewed deposits are considered to be “new”

deposits.

•Any new deposit made by a plan on or after

December 19, 1992, if the deposit is made in an

institution that meets the FDIC’s standards for
“adequately capitalized” institutions, but only if the

institution also satisfies either one of the following

conditions:

1. The institution has received a waiver from the

FDIC to take “brokered deposits” – deposits that a

depositor makes through an intermediary that is

engaged in the business of placing funds for others;

or

2. The institution notifies the plan in writing, at

the time the plan makes the deposit, that such

deposits are eligible for pass-through coverage.

In all other cases, any deposit that a plan makes

on or after December 19, 1992, does not receive

pass-through insurance, but rather is insured as a

whole up to a total of $100,000.

If a deposit has pass-through insurance when it

is made into an account, the deposit does not lose

its pass-through insurance, even if the institution

falls out of compliance with the standards for passthrough insurance. But once the institution falls out

of compliance, any subsequent deposits that are

made into that same account (including ones that

are rollovers and renewals of earlier deposits) will

not have pass-through insurance.

THESE RULES ARE COMPLICATED. IF YOU

ARE A PLAN PARTICIPANT AND WANT TO KNOW

HOW YOUR PLAN’S DEPOSIT IS INSURED, WE

SUGGEST THAT YOU CONSULT WITH YOUR

PLAN ADMINISTRATOR FOR FURTHER DETAILS.

Deposits Held On Another’s Behalf

38. How are funds deposited by an executor

or administrator insured?

Funds deposited by an executor or administrator

for a deceased person’s estate are added to any

funds maintained in the name of the deceased. The

sum is insured to a maximum of $100,000.

All funds belonging to the estate of the deceased,

whether held in the name of the deceased or

deposited by the executor or administrator for the

deceased’s estate, are separately insured from funds

owned by the executor, administrator, or beneficiary of the estate.
▼

?38-40

39. How are funds deposited by a guardian,

custodian, or similar fiduciary acting on 

behalf of an individual insured?

Funds deposited by a guardian, custodian

(whether or not court-appointed), or similar fiduciary are added to any other single ownership 

funds of the beneficiary and the total is insured up

to a maximum of $100,000. The fiduciary relationship must be disclosed in the deposit account

records. The details of the fiduciary relationship

and the interests of the parties in the account must

be ascertainable from the deposit account records

of the depository institution or from records maintained in good faith and in the regular course of

business by the depositor (or by some person or

entity that has agreed to maintain records for the

depositor).

40. How are accounts placed by an agent or

nominee insured?

Funds deposited by an agent or nominee on

behalf of an individual or entity (the owner) are

added to any other single ownership funds of the

actual owner and insured up to $100,000 in the

aggregate. If an agent (e.g., a title company or an

attorney) is depositing funds on your behalf, you

should ask if the agent is depositing the funds in the

same institution where you have personally deposited your funds.

The agent’s fiduciary capacity must be disclosed

in the institution’s deposit account records. The

name and ownership interest of each owner in the

account must be ascertainable from the deposit

account records of the depository institution or

from records maintained in good faith and in the

regular course of business by the agent (or by some

person or entity that has agreed to maintain

records for the agent). Special disclosure rules

apply to multi-tiered fiduciary relationships.

An agent may pool the funds of several owners

into one account. If the disclosure rules are satisfied, the funds of each owner will be separately

insured.
41. What is the insurance coverage for joint

ownership funds deposited by an agent, nominee, guardian, custodian, or conservator?

Funds held by an agent, nominee, guardian, custodian, or conservator on behalf of two or more

joint owners will be insured as a joint ownership

account. For example, funds deposited by a real

estate broker acting as agent for a husband and wife

will be insured as the joint ownership funds of the

husband and wife.

Business Accounts

42. What is the deposit insurance coverage for

funds deposited by a corporation, partnership,

or unincorporated association?

Funds deposited by a corporation, partnership,

or unincorporated association are insured up to a

maximum of $100,000. Funds deposited by a corporation, partnership, or unincorporated association are insured separately from the personal

accounts of the stockholders, partners, or members.

To qualify for this coverage, the entity must be

engaged in an “independent activity,” meaning that

the entity is operated primarily for some purpose

other than to increase deposit insurance.

Accounts owned by the same entity, but designated for different purposes, are not separately

insured. Instead, such accounts are added together

and insured up to $100,000 in the aggregate. So, if

a corporation has divisions or units that are not

separately incorporated, the deposit accounts of

those divisions or units will be added to any other

deposit accounts of the corporation for purposes of

determining deposit insurance coverage.

Funds owned by a business that is a sole proprietorship are treated as the individually owned funds

of the person who is the sole proprietor. So, funds

deposited in the sole proprietorship’s name are

added to any other single ownership accounts of

the sole proprietor and the total is insured to a

maximum of $100,000.
▼41-43

Deposits In Merged Institutions

43. What is the resulting insurance coverage

if two or more different depository institutions

merge into one institution and a person has

deposits at the two (previously separate) 

institutions?

Whenever two or more insured depository institutions merge, their deposits continue to be separately insured for six months from the date of the

merger. Certificates of deposit assumed by another

institution continue to be separately insured until

the earliest maturity date after the end of the sixmonth period. Such certificates of deposit that

mature during the six-month period and are

renewed for the same term and in the same dollar

amount (either with or without accrued interest)

will continue to be separately insured until the first

maturity date after the six-month period. Such certificates of deposit that mature during the sixmonth period and are renewed on any other basis,

or that are not renewed and become demand

deposits, will be separately insured only until the

end of the six-month period. 

Insurance Information on the Internet

To further help consumers and bankers learn

about deposit insurance, and to provide information

about the insurance coverage of specific groups of

accounts, the FDIC has developed the Electronic

Deposit Insurance Estimator (EDIE). The EDIE

system is located on the FDIC’s Internet Web Site

(www.fdic.gov) and consolidates all of the deposit

insurance information available on the site in one

easy-to-access location.

EDIE is an interactive Internet application that

allows consumers or bankers to enter information

about an account or group of accounts at an FDICinsured institution, and receive back a report that

states whether the funds are fully insured. If any

funds are uninsured, EDIE will identify them and

explain why the funds are not covered. A person

does not need to know the deposit insurance rules

in order to use EDIE. The program asks simple

questions about the names (ownership) and balances of accounts, then furnishes a report. Assisting

?
users along the way is a red-haired, green-eyed

helper, “EDIE.” EDIE provides definitions of terms,

examples, and other important information to make

the system easy to use. To protect consumers’ privacy, no identifying information such as account

numbers, Social Security numbers or bank names

is asked. 

Notice

This booklet provides examples of insurance coverage under the Federal Deposit Insurance

Corporation’s rules on certain types of accounts

commonly held by depositors in insured banks and

insured savings associations. The information provided in this booklet is presented in a nontechnical

way and is not intended to be a legal interpretation

of the FDIC’s laws and regulations on insurance

coverage. For greater detail concerning the technical aspects of insurance coverage, depositors or

their counsel may wish to consult the Federal

Deposit Insurance Act (12 U.S.C. 1811 et seq.) and

the FDIC’s regulations relating to insurance coverage (12 C.F.R. Part 330). 

Depositors are advised that no person may, by

any representations or interpretations, affect the

extent of insurance coverage provided by the

Federal Deposit Insurance Act and the rules and

regulations for insurance of deposit accounts.

For More Information

The FDIC maintains regional offices in Atlanta,

Boston, Chicago, Dallas, Kansas City, Memphis,

New York, and San Francisco. Check your local

directory for the appropriate telephone number or

call 1-877-275-3342 for the address of the regional

office serving you.

Federal Deposit Insurance Corporation

Division of Compliance and Consumer Affairs

550 17th Street, N.W.

Washington, DC 20429-9990

1-877-275-3342 or 1-877-ASK-FDIC

1-800-925-4618 or 1-202-942-3147 (TTD)

Online Customer Assistance Form
The official bank sign looks like this:

The official savings association sign looks like this:

Each depositor insured to $100,000

FEDERAL DEPOSIT INSURANCE CORPORATION

Deposits

Federally Insured

to $100,000

Backed by the

Full Faith and Credit

of the

United States

Government
May be reprinted without restriction

1999

Federal Deposit Insurance Corporation

Washington, DC 20429

P-1400-003-99