FDIC’s 

Guide to 

Deposit 

Insurance 

Coverage

Your

Insured 

Deposits

$$$$$$$$$$$$$$$$$$$$$$$$$

Federal 

Deposit 

Insurance 

Corporation
2

Foreword

The FDIC – short for the Federal Deposit Insurance

Corporation–is an independent agency of the 

United States government. The FDIC protects 

you against the loss of your insured deposits if 

an FDIC-insured bank or savings association fails. 

FDIC insurance is backed by the full faith and credit

of the United States government.

If you or your family’s deposit accounts at one FDICinsured bank or savings association total $100,000 

or less, your funds are fully insured. You can have

more than $100,000 at one insured bank or savings

association and still be fully insured provided your

accounts meet certain requirements. 

This guide describes the FDIC’s rules for insurance

coverage of bank and savings association deposits

and answers frequently asked questions about 

the FDIC’s insurance rules. The guide is intended 

primarily for depositors who need a comprehensive

explanation of the FDIC’s rules, including the 

requirements to qualify for more than $100,000 

in insurance coverage. 

Federal law expressly limits the amount 

of insurance the FDIC can pay to depositors and 

no representation made by any person can

increase that coverage.

Notice

The information provided in this guide is 

presented in a non-technical 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).

Federal law expressly limits the amount of 

insurance the FDIC can pay to depositors and 

no representation made by any person can

increase that coverage.
3

Table of Contents

Pg

4 FDIC Insurance 

Basics

5 Ownership 

Categories

5 Single 

Accounts 

7 Self-Directed Retirement

Accounts

8 Joint 

Accounts

10 Revocable Trust 

Accounts

14 Irrevocable Trust 

Accounts

15 Employee Benefit Plan 

Accounts

16 Corporation/Partnership/ 

Unincorporated Association Accounts

17 Public Unit 

Accounts

18 Frequently Asked Questions 

About FDIC Insurance 

18 General

Questions

21 Death of an Account Owner 

or Beneficiary

21 Merger of 

Insured Banks 

22 Fiduciary 

Accounts 

Back For More Information 

Cover from the FDIC 
4

FDIC Insurance Basics

The FDIC insures deposits in most banks and savings

associations located in the United States. The FDIC

protects you against the loss of your deposits if 

an FDIC-insured bank or savings association fails.

FDIC insurance is backed by the full faith and credit 

of the U.S. government. 

To check whether your bank or savings association 

is insured by the FDIC, call toll-free at: 

1-877-275-3342

or use the FDIC Institution Directory at: 

www3.fdic.gov/idasp

or look for one of these signs where deposits are

received. (For simplicity, the term “insured bank” 

is used to mean any bank or savings association 

that has FDIC insurance.)

What does FDIC deposit insurance

cover? 

FDIC insurance covers all types of deposits received

at an insured bank, including deposits in checking,

NOW, and savings accounts, money market deposit

accounts, and time deposits such as certificates of

deposit (CDs). 

FDIC deposit insurance covers the balance of each

depositor’s account, dollar-for-dollar, up to the insurance

limit, including principal and any accrued interest

through the date of the insured bank’s closing. 

The FDIC does not insure the money you invest in

stocks, bonds, mutual funds, life insurance policies,

annuities, or municipal securities, even if you bought

these products from an insured bank. 

The FDIC does not insure U.S. Treasury bills, bonds,

or notes. These are backed by the full faith and credit

of the U.S. government – the strongest guarantee

you can get.

Backed by the 

Full Faith and Cred it it 

of the

United S tates

Government overnment

Deposits

Federally Insured to $100,000

Backed by the

Full Faith and Cred it 

of the

United S tates

Government
5

What is the FDIC insurance limit? 

The basic insurance limit is $100,000 per depositor,

per insured bank. Deposits in separate branches of

an insured bank are not separately insured. Deposits

in one insured bank are insured separately from 

deposits in another insured bank. 

Deposits maintained in different categories of legal

ownership at the same bank can be separately

insured. Therefore, it is possible to have deposits 

of more than $100,000 at one insured bank and 

still be fully insured.

The following section describes the ownership 

categories recognized by FDIC regulations and the

requirements that you must meet to have coverage

beyond the basic $100,000 limit. 

Ownership Categories 

Single Accounts

A single account is a deposit owned by one 

person. This ownership category includes any

deposit account that:

☛ Is held in one person’s name alone

☛ Is established for one person by an agent, 

nominee, guardian, custodian, or conservator, 

including Uniform Gift to Minors Act accounts, 

escrow accounts, and brokered deposit accounts 

☛ Is held in the name of a business that is a sole 

proprietorship (for example, a “DBA account”)

☛ Is established for a decedent’s estate

☛ Fails to qualify for coverage under another 

ownership category
6

All single accounts owned by the same person 

at the same insured bank are added together 

and the total is insured up to $100,000.

If you own funds in an account titled in your name

alone but you give another person the right to 

withdraw funds from the account, the account will

be insured as a single account only if the insured

bank’s deposit account records indicate that:

☛ the other signer is authorized to make withdrawals

pursuant to a Power of Attorney, or 

☛ the account is owned by one person and the 

other person is authorized to withdraw funds 

on the owner’s behalf (i.e., a convenience account)

If the insured bank’s account records do not indicate

that such a relationship exists, the deposit would be

insured as a joint account. 

Explanation: 

Marci Jones has four single accounts at the same

insured bank: three accounts held in her name alone

and one account held by her business, which is a 

sole proprietorship. Funds owned by a sole proprietorship are insured as the single ownership funds of the

person who owns the business. Thus, the deposits 

in all of these accounts are added together and the

total balance, $150,000, is insured for $100,000, 

leaving $50,000 uninsured.

Single Account Example 

Account Deposit Account

Title Type Balance

Marci Jones NOW $ 5,000

Marci Jones Savings 20,000

Marci Jones CD 100,000

Marci’s Memories

(a sole proprietorship) Checking 25,000

Total Deposits 150,000

Amount Insured 100,000

Amount Uninsured $ 50,000
7

Self-Directed Retirement Accounts

Individual Retirement Accounts (IRAs), self-directed

Keogh accounts, and any other self-directed 

retirement accounts are insured under the same

ownership category.

An account is “self-directed” if the owner or plan 

participant has the right to direct the investment

of the assets in the account. 

Each person’s deposits in self-directed retirement

accounts at the same insured bank are added

together and insured up to $100,000, separately

from any retirement accounts that are not selfdirected and any non-retirement funds. 

Naming beneficiaries to a self-directed retirement

account does not increase insurance coverage.

A Roth IRA is treated the same as a traditional IRA

for deposit insurance purposes. So, if a depositor

has both a Roth IRA and a traditional IRA at the

same insured bank, the funds in both accounts are

added together and insured up to $100,000. 

Self-Directed Retirement Account Example 

Account Account

Title Balance

Bob Johnson’s Roth IRA $ 10,000

Bob Johnson’s IRA 75,000

Total 85,000

Amount Insured $ 85,000

Explanation:

Since Bob’s total in all self-directed retirement

accounts at the same insured bank is less than 

the $100,000 limit, both IRAs are fully insured.
8

Joint Accounts

A joint account is a deposit owned by two or 

more people. To qualify for insurance under 

this ownership category, all of the following

requirements must be met:

1 All co-owners must be 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 

funds from the account. For example, if one 

co-owner can withdraw funds on his or her 

signature alone but the other co-owner can 

withdraw funds only with the signature of both 

co-owners, the co-owners do not have equal 

withdrawal rights. 

3 All co-owners must sign the deposit account 

signature card unless the account is a CD or 

is established by an agent, nominee, guardian, 

custodian, executor or conservator.

If all of these requirements are met, each person’s

share of all accounts that are jointly held at the

same insured bank are added together and the

total is insured up to $100,000. The FDIC assumes

that all co-owners’ shares are equal unless the

deposit account records state otherwise. 

The balance in a joint account can exceed $100,000

and still be fully insured if each co-owner’s share

of all joint accounts at the same bank does not

exceed $100,000. For example, a husband and

wife could have up to $200,000 in one or more joint

accounts at the same insured bank and the deposits

would be fully insured.

Insurance coverage of joint accounts is not increased

by rearranging the owners’ names or by changing

the styling of their names. Alternating the use of

“or,” “and” or “and/or” to separate the names of 

co-owners in a joint account title also does not affect

the amount of insurance coverage provided.
9

In addition, using different Social Security numbers 

on multiple accounts held by the same co-owners

will not increase insurance coverage.

Explanation:

☛ Mary’s ownership share in all joint accounts equals

1/2 of the NOW account ($12,500), 1/2 of the 

savings account ($50,000), and 1/3 of the CD 

($50,000), for a total of $112,500. Since her 

coverage in the joint ownership category is 

limited to $100,000, $12,500 is uninsured.

☛ John’s ownership share in all joint accounts 

is the same as Mary’s, so $12,500 is uninsured.

☛ Robert’s ownership share in all joint accounts is 

1/3 of the CD, or $50,000, so his share is fully 

insured.

Joint Account Example 

Account Deposit Account

Title Type Balance

Mary and John Smith NOW $ 25,000

John or Mary Smith Savings 100,000

Mary or John or Robert Smith CDs 150,000

Total Deposits $ 275,000

Insurance coverage for each owner is calculated 

as follows:

Ownership

Depositors Share Insured Uninsured

Mary $ 112,500 $ 100,000 $ 12,500

John 112,500 100,000 12,500

Robert 50,000 50,000 0

Total $ 275,000 $ 250,000 $ 25,000
10

Revocable Trust Accounts

A revocable trust account is a deposit account

that evidences an intention that the funds will

belong to one or more named beneficiaries upon

the death of the owner (grantor/settlor). 

There are both informal and formal revocable trusts.

Informal revocable trusts, often called “payable-ondeath” (POD),“Totten trust,” or “in trust for”(ITF)

accounts are created when the account owner

signs an agreement–usually part of the bank’s 

signature card–stating that the funds are payable 

to one or more beneficiaries upon the owner’s

death. 

Formal revocable trusts–known as“living”or “family”

trusts–are written trusts created for estate planning

purposes. The owner controls the funds in the trust

during his or her lifetime. Upon the owner’s death,

the trust generally becomes irrevocable. 

All deposits that an owner has in both informal 

and formal revocable trusts are added together 

for insurance purposes, and the insurance limit 

is applied to the combined total.

Payable-on-Death (POD) Accounts

POD accounts are insured up to $100,000 per

owner for each beneficiary if all of the following

requirements are met:

1 The account title must include commonly accepted

terms such as “payable-on-death,”“in trust for,”

or “as trustee for” to indicate the existence 

of a trust relationship. These terms may be 

abbreviated (e.g., “POD,” “ITF”or “ATF”).

2 The beneficiaries must be identified by name in 

the deposit account records of the insured bank.
11

3 The beneficiaries must be “qualifying,” meaning 

that the beneficiaries must be the owner’s spouse,

child, grandchild, parent, or sibling. Adopted and 

step children, grandchildren, parents, and siblings 

also qualify. Others including in-laws, cousins, 

nieces and nephews, friends and organizations 

(including charities) do not qualify.

If any of the requirements are not met:

☛ The account would not be insured under the 

revocable trust category. The account, or the 

portion of the account that does not qualify, 

would be added to the owner’s other single 

accounts, if any, at the same insured bank 

and insured up to $100,000. 

☛ If the account has more than one owner, the 

FDIC would insure each owner’s share as his 

or her single account.

If some beneficiaries meet the relationship 

requirements and all other requirements are met, 

the interests of the qualifying beneficiaries would 

be insured under the revocable trust category. The 

interests of the nonqualifying beneficiaries would be

added to the owner’s other single accounts, if any, 

at the same bank and insured up to $100,000.

If a POD account has more than one owner (e.g.,

husband and wife) or is held for multiple beneficiaries,

the insured balance of the account can exceed

$100,000. The FDIC will assume that the owners’

shares are equal unless the deposit account records

state otherwise. Similarly, if there are multiple 

beneficiaries, the FDIC will assume the beneficiaries’

interests are equal unless otherwise stated in the

deposit account records.

Explanation:

This trust account is insured up to $100,000 since

there is one qualifying beneficiary who would receive

the deposit when the owner dies.

Example 1

POD account with one owner

Account Account Amount Amount

Title Balance Insured Uninsured

John Smith POD to son $ 100,000 $ 100,000 $ 0
12

Explanation: 

All but one account is fully insured. The account

owned by the husband and wife for one grandchild 

is only insured up to $200,000 because each owner

is only entitled to $100,000 insurance coverage 

for each qualifying beneficiary. 

Living Trust Accounts

Living trust accounts are insured up to

$100,000 per owner for each beneficiary 

if all of the following requirements are met:

1 The account title at the bank must indicate that 

the account is held by a living trust. This rule 

can be met by using the terms “living trust,”

“family trust,”or similar language in the account 

title.

2 The beneficiaries must be “qualifying” as defined 

on page 11. 

Note that living trust coverage is based on the 

interests of qualifying beneficiaries who would

become entitled to receive trust assets when the

trust owner dies (or if the trust is jointly owned,

when the last owner dies). This means that, when

determining coverage, the FDIC will ignore any trust

beneficiary who would have an interest in the trust

assets only after another living beneficiary dies.

Example 2

POD accounts with multiple owners 

and beneficiaries

Account Account Amount Amount

Title Balance Insured Uninsured

Husband and Wife 

POD 3 Children $ 600,000 $ 600,000 $ 0

Husband POD Wife 100,000 100,000 0

Wife POD Husband 100,000 100,000 0

Husband POD

Brother and Father 200,000 200,000 0

Husband and Wife

POD Grandchild 300,000 200,000 100,000

Total $ 1, 300,000 $ 1, 200,000 $ 100,000
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If a living trust has multiple beneficiaries, the 

FDIC will assume the beneficiaries’ interests are

equal unless otherwise stated in the trust. For 

example, if a father has a living trust leaving all trust

deposits equally to his three children, the trust’s

account would be insured up to $300,000 since

there are three qualifying beneficiaries who would

inherit the trust deposits equally when the owner 

dies. 

If any of the requirements are not met:

☛ The account would not be insured under the 

revocable trust category. The account, or the 

portion of the account that does not qualify, 

would be added to the owner’s other single 

accounts, if any, at the same insured bank 

and insured up to $100,000. 

☛ If the account has more than one owner, the 

FDIC would insure each owner’s share as his 

or her single account.

If some beneficiaries meet the relationship 

requirements and all other requirements are met, 

the interests of the qualifying beneficiaries would 

be insured under the revocable trust category. The

interests of the nonqualifying beneficiaries would 

be added to the owner’s other single accounts, 

if any, at the same bank and the total insured up 

to $100,000. 

Some living trusts give a beneficiary the right to

receive income from the trust or to use trust assets

during the beneficiary’s lifetime (known as a life

estate interest). When the beneficiary with the life

estate interest dies, the remaining assets pass to

other beneficiaries. Unless otherwise indicated in the

trust, the FDIC will assume that a beneficiary with 

a life estate interest has an equal share of the trust

with the other beneficiaries. For example, a husband

has a living trust giving his wife a life estate interest

in the trust deposits with the remainder going to their

two children equally upon his wife’s death. Deposits

for this trust would be insured up to $300,000

($100,000 for each qualifying beneficiary – the wife

and two children). 

Some living trusts allocate unequal interests to 

the beneficiaries. For example, a father has a 

revocable trust providing that upon his death, the

funds pass to his two children, but not on an equal

basis – Henry (child 1) has a 2/3 interest and 

Ed (child 2) has a 1/3 interest. 
14

For the deposits in this trust account to be fully

insured, the funds attributable to the beneficiary 

with the largest interest cannot exceed $100,000. 

In this example, the father can place up to $150,000

of deposits in this trust account and be fully insured.

Since Henry holds a 2/3 interest in the trust deposits,

Henry’s interest is $100,000 (2/3 of $150,000) and

his brother’s interest is $50,000 (1/3 of $150,000).

The $100,000 per beneficiary insurance limit applies

to all formal and informal revocable trust accounts

that an owner has at the same bank. For example, 

if a father has a POD account naming his son and

daughter as beneficiaries and he also has a living trust

account naming the same beneficiaries, the funds 

in both the POD and living trust accounts would be 

added together and the total insured up to $200,000

($100,000 per qualifying beneficiary). 

Irrevocable Trust Accounts

Irrevocable trust accounts are deposits held by 

a trust established by statute or a written trust

agreement in which the creator of the trust

(grantor/settlor) contributes funds or property

and gives up all power to cancel or change the

trust.

The interests of a beneficiary in all deposit

accounts established by the same grantor 

and held at the same insured bank under 

an irrevocable trust are added together and

insured up to $100,000, provided all of the 

following requirements are met:

1 The insured bank’s deposit account records must

disclose the existence of the trust relationship.

2 The beneficiaries and their interests in the trust 

must be identifiable from the deposit account 

records of the bank or from the records of the 

trustee.

3 The amount of each beneficiary’s interest must

not be contingent as defined by FDIC regulations.

4 The trust must be valid under state law.

A beneficiary does not have to be related to the

grantor to obtain insurance coverage under the 

irrevocable trust category. 

When the identity or ownership interests of the

beneficiaries cannot be determined, insurance coverage

is limited to $100,000 for the trust as a whole.
15

If the grantor retains an interest in the trust, the

amount of the grantor’s interest would be added to 

any single accounts owned by the grantor and 

the total insured up to $100,000.

Employee Benefit Plan Accounts 

Employee benefit plan accounts are deposits 

of a pension plan, profit-sharing plan or other

employee benefit plan that is not self-directed.

Employee benefit plan deposits are insured up 

to $100,000 for each participant’s interest in the 

plan if certain requirements are met. This coverage 

is known as “pass-through” insurance because 

the insurance coverage passes through the plan

administrator to each participant’s interest or share. 

The availability of pass-through coverage depends 

on the capital condition of the insured bank where

the deposits are placed. If you are a plan participant

and you want to know more about how your plan’s

deposits are insured, consult your plan administrator.

Coverage for a plan’s deposits is not based on the

number of participants, but rather on each participant’s

share of the plan. Because plan participants normally

have different interests in the plan, you cannot 

simply multiply the number of participants times

$100,000 to determine coverage. A simple way to

determine the maximum amount a plan can have 

on deposit and still be fully insured, is to identify 

the participant with the largest percentage share,

then divide $100,000 by that percentage.

Example 

Employee benefit plan that qualifies 

for “pass-through” coverage

Account Title Balance

Happy Pet Clinic Benefit Plan $250,000

Plan Plan Share of Amount Amount

Participants Share Deposit Insured Uninsured

Dr. Todd 40% $ 100,000 $ 100,000 $ 0

Dr. Jones 35% 87,500 87,500 0

Tech Evans 15% 37,500 37,500 0

Tech Barnes 10% 25,000 25,000 0

Plan Total 100% $ 250,000 $ 250,000 $ 0
16

Explanation:

This employee benefit plan can deposit a maximum

of $250,000 in a single bank and have all of its 

participants fully insured. The $250,000 deposit

results in Dr. Todd (the largest participant) being

insured for $100,000 (40% of $250,000). When 

Dr. Todd is fully insured, the rest of the staff will be

insured, since they have smaller shares of the plan.

Corporation /Partnership/

Unincorporated Association Accounts

Corporations, partnerships, and unincorporated 

associations, including for-profit and not-for-profit

organizations, are insured under the same 

ownership category. 

To qualify for coverage under this 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 insurance

coverage.

Deposits owned by a corporation, partnership, 

or unincorporated association are insured up 

to $100,000, separately from the personal accounts

of the entity’s stockholders, partners, or members. 

Accounts owned by the same corporation, partnership,

or unincorporated association but designated 

for different purposes are not separately insured.

Instead, such accounts are added together and

insured up to $100,000. For example, if a corporation

has divisions or units that are not separately 

incorporated, the deposit accounts of those divisions

or units would be added to any other deposit accounts

of the corporation and the total insured up to $100,000.

The number of partners, members or signatories 

that a corporation, partnership, or unincorporated

association has does not affect coverage. For

example, funds owned by a homeowners association

are insured up to $100,000 in total, not $100,000 

for each member of the association.
17

Unincorporated associations typically insured under

this category include churches and other religious

organizations, community and civic organizations,

and social clubs. 

Accounts in the names of sole proprietorships 

(for example, “DBA accounts”) are not insured in 

this category. Rather, they are added to the owner’s

other single accounts, if any, at the same insured bank

and the total is insured up to $100,000. (See page 6.)

Public Unit Accounts

Public unit accounts are deposit accounts of:

☛ The United States

☛ 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 

☛ An Indian tribe 

Insurance coverage of a public unit account differs

from a corporation, partnership, or unincorporated

association account in that the coverage extends 

to the official custodian of the funds belonging 

to the public unit rather than the public unit itself. 

Each official custodian of time and savings

accounts (including interest-bearing NOW

accounts) of a public unit is insured up to

$100,000. 

Additionally, demand deposits in an insured bank

located in the same state as the public unit are 

separately insured up to $100,000. The same official

custodian may receive up to $200,000 in insurance

coverage – $100,000 in time and savings deposits

and $100,000 in demand deposits – provided 

the funds are held in an insured bank located in 

the same state as the public unit. Demand deposits

maintained by an official custodian of the United States

will be insured separately from any time deposits 

maintained by the same custodian at the same 

insured bank, regardless of the state in which the

insured bank is located.

Public unit funds maintained in any out-of-state

bank– whether time, savings or demand deposits –

are limited to a maximum of $100,000 in coverage

per official custodian. 
18

Frequently Asked Questions 

About FDIC Insurance 

General Questions

1. How can I tell whether my bank is insured? 

Insured banks must display an official sign at each

teller window or station where deposits are 

regularly received. You can also find out whether 

a particular bank or savings association has FDIC 

insurance coverage by contacting the FDIC using

one of the resources listed on the back cover 

of this guide. 

2. Whose deposits does the FDIC insure? 

Any person or entity can have FDIC deposit 

insurance in an insured bank located in the

United States. You do not have to be a U.S. citizen 

or resident to have deposits insured by the FDIC.

3. Does FDIC insurance protect creditors and 

shareholders? 

FDIC insurance only protects depositors, although 

some depositors may also be creditors or 

shareholders of an insured bank.

4. Does the FDIC insure all investments sold 

by an insured bank? 

The FDIC does not insure the money you invest 

in stocks, bonds, mutual funds, life insurance 

policies, annuities, or municipal securities, even 

if you bought these products from an insured 

bank.

The FDIC also does not insure U.S. Treasury bills, 

bonds, or notes, but those are backed by the 

full faith and credit of the U.S. government –

the strongest guarantee you can get.

5. How long does the FDIC take to pay insurance

on deposits after an insured bank fails? 

Federal law requires the FDIC to make payment 

as soon as possible. Historically, the FDIC pays 

insurance within a few days after a bank closing 

either by establishing an account at another 

insured bank or by providing a check. Deposits 

purchased through a broker may take longer to 

be paid because the FDIC may need to obtain the 

broker’s records to determine insurance coverage.
19

Customers with uninsured deposits receive the 

insured portion of their account as described 

above. They will wait longer to receive payment 

for some or all of their uninsured funds. The 

amount of uninsured funds they may receive, 

if any, is based on the sale of the failed bank’s 

assets. Depending on the quality and value of 

these assets, it may take several years to sell the 

assets. As assets are sold, uninsured depositors

receive periodic payment on their uninsured 

deposit claim. 

6. Does the FDIC insure an unpaid cashier’s 

check, interest check, money order, or expense 

check issued by an insured bank? 

If you hold one or more of these items from an 

insured bank, and the insured bank fails before 

you cash the item elsewhere, the FDIC will add 

the item to any other deposits that you hold in 

the same ownership category at the same insured

bank. For example, an outstanding interest check 

payable to you will be added to your other 

single ownership accounts, if any, and the total 

insured up to $100,000.

7. Does the FDIC insure safe deposit boxes 

if a bank fails?

The FDIC does not insure safe deposit boxes or 

their contents. In the event of a bank failure, the 

FDIC in most cases arranges for an acquiring bank

to take over the failed bank’s offices, including 

locations with safe deposit boxes. If no acquirer 

is found, boxholders would be sent instructions 

for removing the contents of their boxes.

8. 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 bank. The deposit account records of an

insured bank include account ledgers, signature 

cards, certificates of deposit, passbooks, and 

certain computer records. Account statements, 

deposit slips and cancelled checks are not 

considered deposit account records for purposes 

of determining deposit insurance coverage.
20

9. When an insured bank fails, what evidence will 

the FDIC require to determine the amount of 

insurance coverage for a living trust account? 

If an insured bank fails, the FDIC would look 

to the account title to determine whether an 

account is held by a living trust. The FDIC would 

then ask the owner to provide a copy of the 

trust document, which the FDIC would review 

to identify the beneficiaries and determine their

interests in the account. The owner also may be 

required to complete an affidavit attesting to the 

relationship of the beneficiaries to the trust owner. 

Note that to qualify for coverage in the revocable

trust account category, the account title must 

indicate that the funds are held by a revocable 

trust. This requirement may be met by including 

the terms “living trust” or “family trust” in the 

account title, or by including other words or 

acronyms indicating that the account is held 

by a trust. 

10. Can I increase my insurance coverage by 

depositing funds with different insured banks? 

Your deposits with each FDIC-insured bank are 

insured separately from any deposits you have 

at another insured bank. If an insured bank has 

branch offices, the main office and all branch 

offices are considered one insured bank – you 

cannot increase insurance coverage by placing 

deposits at different branches of the same 

insured bank. Similarly, deposits held with the 

Internet division of an insured bank are considered 

the same as funds deposited with the “brick 

and mortar” part of the bank, even if the Internet 

division uses a different name.

11. Can I increase my insurance coverage by 

dividing my deposits into several different 

accounts at the same insured bank? 

Deposit insurance coverage can be increased 

only if the accounts are held in different categories 

of ownership. These categories include single 

accounts, self-directed retirement accounts, 

joint accounts and revocable trust accounts. 

The requirements for obtaining separate insurance

coverage in the ownership categories are 

explained elsewhere in this booklet. 
21

12. Can I increase coverage for my joint accounts 

by using a different co-owner’s Social Security 

number on each account or changing the 

way the owners’ names are listed on the 

accounts?

Using different Social Security numbers, 

rearranging the order of names listed on accounts,

or substituting “and” for “or” in joint account 

titles does not affect the amount of insurance 

coverage available to co-owners of joint accounts.

Death of an Account Owner 

or Beneficiary

13. What happens to deposit insurance coverage 

after an account owner dies? 

The FDIC insures a deceased person’s accounts 

as if they were still alive for another six months. 

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.

14. How does the death of a beneficiary of a

POD account affect insurance coverage? 

There is no grace period if a beneficiary (or all 

beneficiaries) of a POD account passes away. 

The funds in the account would immediately

be insured as the single ownership funds of 

the account owner. If one or more, but not all, 

beneficiaries pass away, the insurance coverage 

of the POD account would be reduced because 

there are fewer beneficiaries.

Merger of Insured Banks 

15. What happens to my coverage if I have 

deposits at two insured banks that 

merge?

When two or more insured banks merge, 

the deposits from the assumed bank continue 

to be insured separately for at least six months 

after the merger. This grace period gives 

a depositor the opportunity to restructure 

his or her accounts, if necessary. 
22

CDs from the assumed bank are separately 

insured until the earliest maturity date after 

the end of the six-month grace period. CDs 

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) continue to be separately insured until 

the first maturity date after the six-month 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.

Fiduciary Accounts

16. What are fiduciary accounts? 

These are deposit accounts owned by one party 

but held in a fiduciary capacity by another party. 

Fiduciary relationships may include, but are not 

limited to, an agent, nominee, guardian, executor, 

or custodian. Common fiduciary accounts include 

Uniform Gift to Minors Accounts (UGMA), 

escrow accounts, Interest On Lawyer Trust 

Accounts (IOLTA), and deposit accounts obtained 

through a broker.

17. What are the FDIC disclosure requirements 

for fiduciary accounts? 

The fiduciary nature of the account must be 

disclosed in the bank’s deposit account records 

(e.g., “Jane Doe as Custodian for Susie Doe”

or “First Real Estate Title Company, Client 

Escrow Account”). The name and ownership 

interest of each owner in the account must be 

ascertainable from the deposit account records 

of the insured bank or from records maintained 

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. If an agent pools the funds

of several owners into one account and the 

disclosure rules are satisfied, the funds of each 

owner will be insured as that owner’s funds.

18. How does the FDIC insure funds deposited by 

a fiduciary acting on behalf of an individual?

Funds deposited by an agent on behalf of an 

individual (the actual owner) are added to the 

individual’s other single accounts, if any, at the 
23

same insured bank and the total is insured up 

to $100,000. If an agent (e.g., a title company 

or an attorney) makes a deposit on your behalf, 

you should ask where the agent is placing the 

funds since the deposit may be added to any 

accounts you may already have at the same 

insured bank.

19. How does the FDIC insure funds deposited by 

a fiduciary on behalf of two or more people? 

Funds held by an agent, nominee, guardian, 

custodian, or conservator on behalf of two or 

more joint owners are insured as the joint 

accounts of those people (assuming the FDIC’s 

requirements for joint accounts are satisfied).

The funds are added to any jointly owned 

accounts they may have at the same insured 

bank and the total is insured up to $100,000 

for each owner.

20. How are CDs purchased from a broker 

insured? 

A CD issued by an insured bank that is purchased

by a broker on behalf of one or more persons 

or entities (the owner) is insured as the deposits 

of the owner if the broker meets the disclosure 

requirements for fiduciary accounts. (See no.17.) 

The brokered deposit would be added to any 

other deposits of the owner (or owners) at the 

same insured bank and the total would be subject 

to the insurance limit for the applicable ownership

category. 

21. How does FDIC insurance cover funds 

deposited for a deceased person’s estate? 

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 

person at the same bank, if any, and the total 

is insured up to $100,000. Funds belonging 

to the estate of the deceased person, whether 

held in the name of the deceased or deposited 

by the executor or administrator, are insured 

separately from the funds owned by the executor,

administrator, or beneficiaries of the estate. 

Decedent accounts are not insured on a perbeneficiary basis; they are insured up to $100,000

as the funds of the estate.
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May be reprinted in its entirety without restriction.

FDIC-001-2004

For More Information from the FDIC

Call toll-free at:

1-877-ASK-FDIC (1-877-275-3342)

from 8 am until 8 pm (Eastern Time) 

Monday through Friday 

Hearing Impaired Line:

1-800-925-4618

Calculate your insurance coverage using the FDIC’s

online Electronic Deposit Insurance Estimator at:

www2.fdic.gov/edie

Read more about FDIC insurance online at:

www.fdic.gov/deposit

Send your questions by e-mail using the FDIC’s 

online Customer Assistance Form at: 

www2.fdic.gov/starsmail

Mail your questions to:

FDIC 

Division of Supervision 

and Consumer Protection

Attn: Deposit Insurance Outreach

550 17th Street, NW

Washington, DC 20429-9990

Design: FDIC/DOA/CSB/Design + Printing Unit