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UPDATED 2014 

Federal Deposit Insurance Corporation 

YOUR INSURED 

DEPOSITS 
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IMPORTANT INFORMATION 

ABOUT THIS BROCHURE 

Your Insured Deposits is a comprehensive description of FDIC 

deposit insurance coverage for the most common account 

ownership categories. This brochure is not intended as a 

legal interpretation of the FDIC’s laws and regulations. For 

additional or more specifc information about FDIC insurance 

coverage, consult the Federal Deposit Insurance Act (12 

U.S.C.1811 et seq.) and the FDIC’s regulations relating to 

insurance coverage described in 12 C.F.R. Part 330. 

The information in this brochure is based on FDIC laws 

and regulations in effect 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brochure may become outdated.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’s website at www.fdic.gov/ 

deposit/deposits, will be updated immediately if rule changes 

affecting FDIC insurance coverage are made. 

Depositors should note 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. 

This brochure is not intended to provide estate planning 

advice. Depositors seeking such assistance should contact 

a fnancial or legal advisor. 

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 specifc bank or 

savings association: 

• Call the FDIC toll-free: 1-877-275-3342

• Use FDIC’s “Bank Find” at:

http://research.fdic.gov/bankfind/

• Look for the FDIC sign where deposits are received
 

 

 

 

 

 

 

 

 

 

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TABLE OF 

CONTENTS 

2 FDIC INSURANCE COVERAGE BASICS 

3 OWNERSHIP CATEGORIES 

3 SINGLE ACCOUNTS 

5 CERTAIN RETIREMENT ACCOUNTS 

7 JOINT ACCOUNTS 

9 REVOCABLE TRUST ACCOUNTS 

14 IRREVOCABLE TRUST ACCOUNTS 

15 EMPLOYEE BENEFIT PLAN ACCOUNTS 

17 CORPORATION/PARTNERSHIP/ 

UNINCORPORATED ASSOCIATION ACCOUNTS 

18 GOVERNMENT ACCOUNTS 

21 UNIQUE OWNERSHIP SCENARIOS 

24 FREQUENTLY ASKED QUESTIONS 

SEE BACK COVER FOR MORE INFORMATION 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 COVERAGE BASICS 

FDIC insurance covers depositors’ 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 all types of deposits received at an 

insured bank but does not cover investments, even if they 

were purchased at an insured bank. 

WHAT THE FDIC COVERS 

• Checking accounts 

• Negotiable Order of Withdrawal (NOW) accounts 

• Savings accounts 

• Money market deposit accounts (MMDA) 

• Time deposits such as certifcates of deposit (CDs) 

• Cashier’s checks, money orders, and other offcial items 

issued by a bank 

WHAT THE FDIC DOES NOT COVER 

• Stock investments 

• Bond investments 

• Mutual funds 

• Life insurance policies 

• Annuities 

• Municipal securities 

• Safe deposit boxes or their contents 

• U.S. Treasury bills, bonds or notes* 

*These investments are backed by the full faith and credit of the U.S. government. 

The standard 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 

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another separately chartered insured bank. For example, 

if a person has a certifcate of deposit at Bank A and has a 

certifcate of deposit at Bank B, the amounts 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 different categories of legal 

ownership. The FDIC refers to these different 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 

different 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. 

• Single Accounts 

• Certain Retirement Accounts 

• Joint Accounts 

• Revocable Trust Accounts 

• Irrevocable Trust Accounts 

• Employee Beneft Plan Accounts 

• Corporation/Partnership/ 

Unincorporated Association Accounts 

• Government Accounts 

SINGLE ACCOUNTS 

A single account is a deposit owned by one person. 

This ownership category includes: 

• An account held in one person’s name only, provided the 

owner has not designated any benefciary(ies) who are 

entitled to receive the funds when the account owner dies 

• 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 

• An account held in the name of a business that is a sole 

proprietorship (for example, a “Doing Business As” or 

DBA account) 

• An account established for or representing a deceased 

person’s funds—commonly known as a decedent’s 

estate account 

• An account that fails to qualify for separate coverage 

under another ownership category 

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If an account title identifes 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 ownership account. 

The FDIC adds together 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 REVOCABLE TRUST ACCOUNT. 

EXAMPLE 1: SINGLE ACCOUNT 

ACCOUNT TITLE DEPOSIT TYPE 

ACCOUNT 

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 

EXPLANATION 

Marci Jones has four single accounts at the same insured 

bank, including one account in the name of her business, 

which is a sole proprietorship. The FDIC insures deposits 

owned by a sole proprietorship as the 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. 

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CERTAIN RETIREMENT ACCOUNTS 

A retirement account is insured under the Certain 

Retirement Accounts ownership category only if the 

account qualifes as one of the following: 

• Individual Retirement Account (IRA): 

» Traditional IRA 

» Roth IRA 

» Simplifed Employee Pension (SEP) IRA 

» Savings Incentive Match Plans for Employees 

(SIMPLE) IRA 

• Self-directed defned contribution plan account includes 

» Self-directed 401(k) plan 

» Self-directed SIMPLE IRA held in the form of a 

401(k) plan 

» Self-directed defned contribution proft-sharing plan 

• Self-directed Keogh plan account (or H.R.10 plan 

account) designed for self-employed individuals 

• 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 retirement accounts listed 

above owned by the same person at the same insured bank 

and insures the total amount up to $250,000. 

The FDIC defnes the term “self-directed” to mean 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. 

The FDIC will consider an account to be self-directed if the 

participant of the retirement plan has the right to choose a 

particular bank’s deposit accounts as an investment option. 

For example: 

• If a plan has deposit accounts at a particular insured 

bank as its default investment 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 

• If a plan consists only of a single employer/employee, 

and the employer establishes the plan with a single 

investment option of deposit accounts at a particular 

insured bank, then the plan would be considered selfdirected for insurance coverage purposes 

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The following types of deposits do not qualify as Certain 

Retirement Accounts: 

• A plan for which the only investment vehicle is 

the deposit accounts of a particular bank, so that 

participants have no choice of investments 

• 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 Beneft 

Plan accounts 

• Defned-beneft plan deposits (plans for which the 

benefts are determined by an employee’s compensation, 

years of service and age), which are insured as 

Employee Beneft Plan accounts 

• Defned contribution plans that are not self-directed, 

which are insured as Employee Beneft Plan Accounts 

• Coverdell Education Savings Accounts (formerly known 

as Education IRAs), Health Savings Accounts or Medical 

Savings Accounts (see the section on Unique Ownership 

Situations for guidance on the deposit insurance coverage) 

NOTE ON BENEFICIARIES: WHILE SOME SELF-DIRECTED RETIREMENT 

ACCOUNTS, LIKE IRAS, PERMIT THE OWNER TO NAME ONE OR 

MORE BENEFICIARIES, THE EXISTENCE OF BENEFICIARIES DOES NOT 

INCREASE THE AVAILABLE INSURANCE COVERAGE. 

EXAMPLE 2: CERTAIN RETIREMENT ACCOUNTS 

ACCOUNT TITLE ACCOUNT BALANCE 

BOB JOHNSON’S ROTH IRA $ 110,000 

BOB JOHNSON’S IRA $ 75,000 

TOTAL $ 185,000 

AMOUNT INSURED $ 185,000 

AMOUNT UNINSURED $ 0 

EXPLANATION 

Bob Johnson has two different 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 $185,000. Since Bob’s total in all 

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certain retirement accounts at the same bank is less than 

$250,000, his IRA deposits are fully insured. 

JOINT ACCOUNTS 

A joint account is a deposit owned by two or more people. 

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 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 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. 

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. 

There is no kinship requirement for joint account coverage. 

Any two or more people that co-own funds can qualify for 

insurance coverage in the joint account ownership category 

provided the requirements listed above are met. 

Insurance coverage of joint accounts is not increased by 

rearranging the owners’ names or Social Security numbers 

or 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. 

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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 REVOCABLE TRUST ACCOUNT. 

EXAMPLE 3: JOINT ACCOUNTS 

ACCOUNT TITLE 

DEPOSIT 

TYPE 

ACCOUNT 

BALANCE 

SHARE PER 

OWNER 

MARY AND JOHN SMITH MMDA $ 230,000 $ 115,000 

MARY OR JOHN SMITH SAVINGS $ 300,000 $ 150,000 

MARY OR JOHN OR 

ROBERT SMITH 

CD $ 270,000 $ 90,000 

TOTAL $ 800,000 

INSURANCE COVERAGE FOR EACH OWNER 

IS CALCULATED AS FOLLOWS: 

OWNERS 

TOTAL OF ALL 

OWNERSHIP 

SHARES 

AMOUNT 

INSURED 

AMOUNT 

UNINSURED 

MARY $ 355,000 $ 250,000 $ 105,000 

JOHN $ 355,000 $ 250,000 $ 105,000 

ROBERT $ 90,000 $ 90,000 $ 0 

TOTAL $ 800,000 $ 590,000 $ 210,000 

EXPLANATION 

• The total amount in each joint account is divided by 

the number of co-owners. 

• Mary’s ownership share in all joint accounts equals 

1/2 of the MMDA account ($115,000), 1/2 of the savings 

account ($150,000), and 1/3 of the CD ($90,000), for 

a total of $355,000. Since her coverage in the joint 

account ownership category is limited to $250,000, 

$105,000 is uninsured. 

• John’s ownership share in all joint accounts is the same 

as Mary’s, so $105,000 of John’s deposits is uninsured. 

• Robert’s ownership share in all joint accounts equals 

1/3 of the CD, or $90,000, so his share is fully insured. 

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REVOCABLE TRUST ACCOUNTS 

This section explains FDIC insurance coverage for revocable 

trust accounts, and is not intended as estate planning advice 

or guidance. Depositors should contact a legal or fnancial 

advisor for assistance with estate planning. 

A revocable trust account is a deposit account owned by 

one or more people that identifes one or more benefciaries 

who will receive the deposits upon the death of the 

owner(s). A revocable trust can be revoked, terminated or 

changed at any time, at the discretion of the owner(s). In 

this section, the term “owner” means the grantor, settlor, or 

trustor of the revocable trust. 

When calculating deposit insurance coverage, the 

designation of trustees, co-trustees and successor trustees 

is not relevant. They are administrators and are not 

considered in calculating deposit insurance coverage. 

This ownership category includes both informal and formal 

revocable trusts: 

• Informal revocable trusts—often called payable on death, 

Totten trust, in trust for, or as trustee for accounts—are 

created when the account owner signs an agreement, 

usually part of the bank’s signature card, directing the 

bank to transfer the funds in the account to one or more 

named benefciaries 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 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 identifed 

benefciaries upon the owner’s death. The trust generally 

becomes irrevocable upon the owner’s death. 

COVERAGE AND REQUIREMENTS FOR REVOCABLE 

TRUST ACCOUNTS 

In general, the owner of a revocable trust account is 

insured up to $250,000 for each unique benefciary, if 

all of the following requirements are met: 

1. The account title at the bank must indicate that the 

account is held pursuant to a trust relationship. This 

rule can be met by using the terms payable on death 

(or POD), in trust for (or ITF), as trustee for (or ATF), 

living trust, family 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. 

2. The benefciaries must be named in either the deposit 

account records of the bank (for informal revocable 

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trusts) or identifed in the formal revocable 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 

benefciaries, provided the specifc names and number 

of eligible benefciaries can be determined. 

3. To qualify as an eligible benefciary, the benefciary must 

be a living person, a charity or a non-proft organization. 

If a charity or non-proft organization is named as 

benefciary, it must qualify as such under Internal 

Revenue Service (IRS) regulations. 

An account must meet all of the above requirements to 

be insured under the revocable trust ownership category. 

Typically, if any of the above requirements are not met, 

the entire amount in the account, or the portion of the 

account that does not qualify, is added to the owner’s other 

single accounts, if any, at the same bank and insured up to 

$250,000. If the trust has multiple co-owners, each owner’s 

share of the non-qualifying amount would be treated as his 

or her single ownership account. 

Insurance coverage for revocable trust accounts is 

calculated differently depending on the number of 

benefciaries named by the owner, the benefciaries’ 

interests and the amount of the deposit. 

Two calculation methods are used to determine insurance 

coverage of revocable trust accounts: one method is used 

only when a revocable trust owner has fve or fewer unique 

benefciaries; the other method is used only when an owner 

has six or more unique benefciaries. 

If a trust has more than one owner, each owner’s insurance 

coverage is calculated separately. 

REVOCABLE TRUST INSURANCE COVERAGE – 

FIVE OR FEWER UNIQUE BENEFICIARIES 

When a revocable trust owner names fve or fewer 

benefciaries, the owner’s trust deposits are insured up to 

$250,000 for each unique benefciary. 

This rule applies to the combined interests of all 

beneficiaries the owner has named in all formal 

and informal revocable trust accounts at the same 

bank. When there are five or fewer beneficiaries, 

maximum deposit insurance coverage for each trust 

owner is determined by multiplying $250,000 times 

the number of unique beneficiaries, regardless of the 

dollar amount or percentage allotted to each unique 

beneficiary. Therefore, a revocable trust with five unique 

beneficiaries is insured up to $1,250,000. 

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MAXIMUM INSURANCE COVERAGE FOR A 

TRUST OWNER WHEN THERE ARE FIVE OR 

FEWER UNIQUE BENEFICIARIES: 

NUMBER OF UNIQUE 

BENEFICIARIES 

MAXIMUM DEPOSIT 

INSURANCE COVERAGE 

1 BENEFICIARY $ 250,000 

2 BENEFICIARIES $ 500,000 

3 BENEFICIARIES $ 750,000 

4 BENEFICIARIES $1,000,000 

5 BENEFICIARIES $1,250,000 

EXAMPLE 4: POD ACCOUNTS FOR ONE OWNER 

WHEN THERE ARE FIVE OR FEWER UNIQUE 

BENEFICIARIES 

ACCOUNT 

TITLE OWNER BENEFICIARIES 

DEPOSIT 

TYPE 

ACCOUNT 

BALANCE 

JOHN JONES 

POD 

JOHN JACK, JANET MMDA $ 10,000 

JOHN JONES 

POD 

JOHN JACK, JANET SAVINGS $ 20,000 

JOHN JONES 

POD 

JOHN JACK, JANET CD $ 470,000 

TOTAL $ 500,000 

AMOUNT 

INSURED 

$ 500,000 

AMOUNT 

UNINSURED 

$ 0 

EXPLANATION 

John Jones has three revocable trust accounts at the 

same insured bank. For each of these accounts, John 

has named the same two unique benefciaries. Maximum 

insurance coverage for these accounts is calculated as 

$250,000 times two benefciaries, which equals $500,000. 

John Jones is fully insured. 

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EXAMPLE 5: MULTIPLE REVOCABLE TRUST ACCOUNTS 

WITH FIVE OR FEWER UNIQUE BENEFICIARIES 

ACCOUNT 

NUMBER 

ACCOUNT 

OWNER(S) 

ACCOUNT 

BENEFICIARIES 

ACCOUNT 

BALANCE 

1 PAUL & 

LISA LI 

(LIVING TRUST) 

JOHN AND 

SHARON LI 

$700,000 

2 LISA LI 

(POD) 

SHARON AND 

BILL LI 

$450,000 

OWNERS BENEFICIARIES 

OWNER’S 

SHARE 

AMOUNT 

INSURED 

AMOUNT 

UNINSURED 

PAUL JOHN, SHARON $ 350,000 $ 350,000 $ 0 

LISA JOHN, SHARON, 

BILL 

$ 800,000 $ 750,000 $ 50,000 

TOTAL $1,150,000 $1,100,000 $ 50,000 

EXPLANATION 

When a revocable trust owner names fve or fewer 

benefciaries, the owner’s share of each trust account is 

added together and the owner receives up to $250,000 in 

insurance coverage for each unique benefciary. 

• Paul’s share: $350,000 (50% of Account 1) 

• Lisa’s share: $800,000 (50% of Account 1 and 100% 

of Account 2) 

Because Paul named two unique benefciaries, his 

maximum insurance coverage is $500,000 ($250,000 times 

two benefciaries). Since his share of Account 1- $350,000 -

is less than $500,000, he is fully insured. 

Because Lisa has named three unique benefciaries 

between Accounts 1 and 2, her maximum insurance 

coverage is $750,000 ($250,000 times three benefciaries). 

Since her share of both accounts - $800,000 - exceeds 

$750,000, she is uninsured for $50,000. 

REVOCABLE TRUST INSURANCE COVERAGE - 

SIX OR MORE UNIQUE BENEFICIARIES 

Equal Benefcial Interests 

When a revocable trust owner names six or more unique 

benefciaries, and all the benefciaries have an equal interest 

in the trust (i.e., every benefciary receives exactly the 

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same amount), the insurance calculation is the same as for 

revocable trusts that name fve or fewer benefciaries. The 

trust owner receives insurance coverage up to $250,000 for 

each unique benefciary. As shown below, with one owner 

and six benefciaries, with equal benefcial interests, the 

owner’s maximum insurance coverage is up to $1,500,000. 

MAXIMUM INSURANCE COVERAGE FOR EACH 

REVOCABLE TRUST OWNER WHEN THERE ARE SIX 

OR MORE UNIQUE BENEFICIARIES WITH EQUAL 

BENEFICIAL INTERESTS: 

NUMBER OF UNIQUE 

BENEFICIARIES 

MAXIMUM DEPOSIT 

INSURANCE COVERAGE 

6 BENEFICIARIES WITH EQUAL 

INTERESTS 

$ 1,500,000 

7 BENEFICIARIES WITH EQUAL 

INTERESTS 

$ 1,750,000 

8 BENEFICIARIES WITH EQUAL 

INTERESTS 

$ 2,000,000 

9 BENEFICIARIES WITH EQUAL 

INTERESTS 

$ 2,250,000 

10+ BENEFICIARIES WITH 

EQUAL INTERESTS 

ADD UP TO $250,000 FOR 

EACH ADDITIONAL UNIQUE 

BENEFICIARY 

Unequal Benefcial Interests 

When a revocable trust owner names six or more 

benefciaries and the benefciaries do not have equal 

benefcial interests (i.e., they receive different amounts), the 

owner’s revocable trust deposits are insured for the greater 

of either: (1) the sum of each benefciary’s actual interest in 

the revocable trust deposits up to $250,000 for each unique 

benefciary, or (2) a minimum coverage amount of $1,250,000. 

Determining insurance coverage of a revocable trust that 

has six or more unique benefciaries whose interests are 

unequal can be complex. For information on coverage 

beyond the minimum coverage amount of $1,250,000 per 

owner, please contact the FDIC for assistance using the 

contact information at the end of this brochure. 

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FDIC FAST FACT 

An owner who identifes a benefciary as having a life 

estate interest in a formal revocable trust is entitled to 

insurance coverage up to $250,000 for that benefciary. 

A life estate benefciary is a benefciary who has the 

right to receive income from the trust or to use trust 

deposits during the benefciary’s lifetime, where other 

benefciaries receive the remaining trust deposits after 

the life estate benefciary 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: $250,000 times 

three diferent benefciaries equals $750,000. 

IRREVOCABLE TRUST ACCOUNTS 

Irrevocable trust accounts are deposit accounts held in 

connection with a trust established by statute or a written 

trust agreement in which the owner (also referred to as 

a grantor, settlor or trustor) 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 revocable trust. 

A revocable trust account that becomes an irrevocable trust 

account due to the death of the trust owner may continue to 

be insured under the rules for revocable trusts. Therefore, in 

such cases, the rules in the revocable trust section may be 

used to determine coverage. 

The interests of a benefciary in all deposit accounts under an 

irrevocable trust established by the same settlor and held at 

the same insured bank are added together and insured up to 

$250,000, only if all of the following requirements are met: 

• The trust must be valid under state law 

• The insured bank’s deposit account records must 

disclose the existence of the trust relationship 

• The benefciaries and their interests in the trust must be 

identifable from the bank’s deposit account records or 

from the trustee’s records 

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• The amount of each benefciary’s interest must not be 

contingent as defned by FDIC regulations 

If the owner retains an interest in the trust, then the amount 

of the owner’s retained interest would be added to the 

owner’s other single accounts, if any, at the same insured 

bank and the total insured up to $250,000. 

For example, if the grantor of an irrevocable trust is still 

living, and the trust provides that trust assets can either 

be used by the grantor or by a trustee on behalf of the 

grantor, the grantor would be deemed to have a retained 

interest. Thus, this irrevocable trust account would 

not be insured under the irrevocable trust ownership 

category, but as a single ownership deposit of the 

grantor. The balance of the account would be added 

together with any other single ownership accounts the 

grantor has at the same bank, and the total would be 

insured up to $250,000. 

FDIC FAST FACT 

Since irrevocable trusts usually contain conditions that 

afect the interests of the benefciaries or provide a 

trustee or a benefciary with the authority to invade the 

principal, insurance coverage for an irrevocable trust 

account usually is limited to $250,000. 

An owner or trustee of an irrevocable trust account who 

is unsure of the provisions of the trust should consult a 

legal or fnancial advisor. 

EMPLOYEE BENEFIT PLAN ACCOUNTS 

An employee beneft plan account is a deposit of a pension 

plan, defned beneft plan or other employee beneft 

plan that is not self-directed. An account insured under 

this category must meet the defnition of an employee 

beneft 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: 

• The investment and management decisions relating to 

the account must be controlled by a plan administrator 

(not self-directed by the participant). 

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• The plan administrator must maintain documentation 

supporting the plan and the benefcial interest of the 

participants 

• The account must be properly titled as an employee 

beneft 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 

often refers to this coverage as “pass-through coverage” 

because 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 different 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 frst 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 

The Happy Pet Vet Clinic has a proft-sharing plan 

for its employees 

PLAN 

PARTICIPANTS 

PLAN 

SHARE 

SHARE OF 

DEPOSIT 

AMOUNT 

INSURED 

AMOUNT 

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 

ACCOUNT TITLE BALANCE 

HAPPY PET VET CLINIC 

BENEFIT PLAN 

$700,000 

16 
EXPLANATION 

This employee beneft plan’s $700,000 deposit is fully 

insured. Because Dr. Todd’s share of the $700,000 deposit 

(35% of $700,000 = $245,000) is less than $250,000, and all of 

the other participants’ shares of the deposit also are less 

than $250,000, the entire deposit is insured. 

To determine the maximum amount this employee beneft plan 

can deposit at one bank and ensure all of the funds are fully 

covered, $250,000 should be divided by the percentage share 

of the plan participant with the largest interest in the plan. In 

this example, 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 beneft plan’s deposits are insured should consult 

with the plan administrator. 

FDIC FAST FACT 

Employee beneft plan deposits that do not qualify for passthrough 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 fles independent of any specifc ownership 

interest in the plan. 

CORPORATION/PARTNERSHIP/UNINCORPORATED 

ASSOCIATION ACCOUNTS 

Deposits owned by corporations, partnerships, and 

unincorporated associations, including for-proft and 

not-for-proft organizations, 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. 

17 
All deposits owned by a corporation, partnership, or 

unincorporated association at the same bank are combined 

and insured up to $250,000. 

Accounts owned by the same corporation, partnership, or 

unincorporated association but designated for different 

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 affect 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. 

FDIC FAST FACT 

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. 

GOVERNMENT ACCOUNTS 

The category known as government accounts (also called 

Public Unit accounts) includes deposit accounts owned by: 

• The United States, including federal agencies 

• 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 government account is unique 

in that the insurance coverage extends to the offcial 

custodian of the deposits belonging to the government or 

public unit, rather than to the government unit itself. 

Accounts held by an offcial custodian of a government unit 

will be insured as follows: 

18 
In-state accounts: 

• Up to $250,000 for the combined amount of all time and 

savings accounts (including NOW accounts) 

• Up to $250,000 for the combined amount of all interestbearing 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: 

• up to $250,000 for the combined amount of all deposit 

accounts 

FDIC FAST FACT 

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: 

www.fdic.gov/deposit/deposits/factsheet.html 

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 different ownership categories. To qualify for 

this expanded coverage, the requirements for insurance 

coverage in each ownership category must be met. 

The example on the next page 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 in qualifed 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 

different account ownership categories and not to provide 

estate planning advice. 

19 
EXAMPLE 7: INSURANCE COVERAGE FOR A 

HUSBAND AND WIFE WITH DEPOSIT ACCOUNTS 

IN MULTIPLE OWNERSHIP CATEGORIES 

ACCOUNT 

TITLE 

ACCOUNT 

OWNERSHIP 

CATEGORY OWNER(S) 

BENEFICIARY 

(IES) 

MAXIMUM 

INSURABLE 

AMOUNT 

HUSBAND SINGLE ACCOUNT HUSBAND $ 250,000 

WIFE SINGLE ACCOUNT WIFE $ 250,000 

HUSBAND & 

WIFE 

JOINT ACCOUNT HUSBAND & 

WIFE 

$ 500,000 

HUSBAND 

POD 

REVOCABLE TRUST 

ACCOUNT 

HUSBAND WIFE $ 250,000 

WIFE POD REVOCABLE TRUST 

ACCOUNT 

WIFE HUSBAND $ 250,000 

HUSBAND & 

WIFE LIVING 

TRUST 

REVOCABLE TRUST 

ACCOUNT 

HUSBAND & 

WIFE 

CHILD 1 

CHILD 2 

CHILD 3 

$ 1,500,000 

HUSBAND 

IRA 

CERTAIN 

RETIREMENT 

ACCOUNT 

HUSBAND $ 250,000 

WIFE IRA CERTAIN 

RETIREMENT 

ACCOUNT 

WIFE $ 250,000 

TOTAL $3,500,000 

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. Husband’s ownership share in all joint accounts 

at the bank equals 1⁄2 of the joint account or $250,000, so 

his share is fully insured. Wife’s ownership share in all 

joint accounts at the bank equals 1⁄2 of the joint account or 

$250,000, so her share is fully insured. 

20 
Revocable Trust Account Ownership Category 

To determine insurance coverage of revocable trust 

accounts, the FDIC frst determines the amount of the trust’s 

deposits belonging to each owner. In this example: 

• Husband’s share = $1,000,000 (100% of the Husband’s 

POD account naming Wife as benefciary and 50% of 

the Husband and Wife Living Trust account identifying 

Child 1, Child 2, and Child 3 as benefciaries) 

• Wife’s share = $1,000,000 (100% of the Wife’s POD 

account naming Husband as benefciary and 50% of the 

Husband and Wife Living Trust account identifying Child 

1, Child 2, and Child 3 as benefciaries) 

Second, the FDIC determines the number of benefciaries 

for each owner. In this example, each owner has four 

unique benefciaries (Spouse, Child 1, Child 2 and Child 3). 

When a revocable trust owner names fve or fewer unique 

benefciaries, the owner is insured up to $250,000 for each 

unique benefciary. Husband’s share of the revocable trust 

deposits is insured up to $1,000,000 ($250,000 times four 

benefciaries = $1,000,000). Wife’s share of the revocable 

trust deposits is insured up to $1,000,000 ($250,000 times four 

benefciaries = $1,000,000). 

Certain Retirement Account 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. 

UNIQUE OWNERSHIP SCENARIOS 

FIDUCIARY ACCOUNTS 

What are fduciary accounts? 

Fiduciary accounts are deposit accounts owned by one party 

but held in a fduciary capacity by another party. Fiduciary 

relationships may include, but are not limited to, an agent, 

nominee, guardian, executor or custodian. Common fduciary 

accounts include Uniform Transfers to Minors Act accounts, 

escrow accounts, Interest On Lawyer Trust Accounts and 

deposit accounts obtained through a broker. 

What are the FDIC requirements for fduciary accounts? 

The fduciary 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 

21 
Company, Client Escrow Account”). The name and 

ownership interest of each owner 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 fduciary 

relationships. If an agent pools the deposits of several 

owners into one account and the disclosure rules are 

satisfed, the deposits of each owner will be insured as that 

owner’s deposits. 

How does the FDIC insure funds deposited by a fduciary? 

Funds deposited by a fduciary on behalf of a person or 

entity (the owner) are insured as the deposits of the owner if 

the disclosure requirements for fduciary accounts are met. 

Are funds deposited by a fduciary insured separately from 

an owner’s other deposit accounts at the same bank? 

Funds deposited by a fduciary on behalf of a person or 

entity (the owner) are added to any other deposits the 

owner holds in the same ownership category at the same 

bank, and insured up to the applicable limit. 

For Example: A broker purchases a CD for $250,000 on a 

customer’s behalf at ABC Bank. The customer already has 

a checking account in his or her name at ABC Bank for 

$15,000. The two accounts are added together and insured 

up to $250,000 in the single ownership account category. 

Since the customer’s single ownership deposits total 

$265,000, $15,000 is uninsured. 

HEALTH SAVINGS ACCOUNTS 

What is a Health Savings Account? 

A Health Savings Account (HSA) is an IRS qualifed taxexempt trust or custodial deposit that is established with a 

qualifed 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 benefciaries have 

been named. If a depositor opens an HSA and names 

benefciaries either in the HSA agreement or in the bank’s 

records, the FDIC would insure the deposit under the 

Revocable Trust Account ownership category. If a depositor 

opens an HSA and does not name any benefciaries, the 

FDIC would insure the deposit under the single account 

ownership category. 

22 
How should an HSA be titled? 

The identifcation of a deposit as an HSA, such as “John 

Smith’s HSA,” is suffcient for titling the deposit to be eligible 

for single account or revocable trust account coverage, 

depending on whether eligible benefciaries are named. 

MORTGAGE SERVICING ACCOUNTS 

How are Mortgage Servicing Accounts Insured? 

Mortgage Servicing Accounts are accounts maintained 

by a mortgage servicer, in a custodial or other fduciary 

capacity, which are composed of payments by mortgagors 

of principal and interest (P&I). 

The cumulative balance paid into the account by the 

mortgagors is insured, with coverage provided to the 

mortgage servicer or mortgage investor, for up to $250,000 

per mortgagor (the borrower). 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 

different borrowers their monthly mortgage payments of 

$2,000 (P&I) and places the funds into a mortgage servicing 

account. Is the $2,000,000 aggregate balance of the 

mortgage servicer’s mortgage servicing account insured? 

Yes, the account is fully insured to the mortgage servicer 

because each mortgagor’s payment of $2,000 (P&I) is 

insured separately for up to $250,000. 

Although mortgage servicers often collect and escrow 

tax and insurance (T&I), these accounts are separately 

maintained and not considered mortgage servicing accounts 

for deposit insurance purposes. T&I deposits belong to the 

mortgagors 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 each individual mortgagor. 

COVERDELL EDUCATION SAVINGS ACCOUNTS 

How is a Coverdell Education Savings Account insured? 

A Coverdell Education Savings Account is insured as 

an irrevocable trust account. Although this account is 

often referred to as an Education IRA, the account does 

not involve retirement and is therefore not insured as 

a self-directed retirement account. It is an irrevocable 

commitment created for the purpose of paying qualifed 

education expenses of a designated benefciary. 

23 
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 to the insured limit. 

• Purchase and Assumption Transaction: This is the 

preferred and most common method, under which a 

healthy bank assumes the insured deposits of the failed 

bank. Insured depositors of the failed bank immediately 

become depositors of the assuming bank and have 

access to their insured funds. The assuming 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 

assuming institution has no obligation to maintain either 

the failed bank 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. 

• Deposit Payoff: When there is no open bank acquirer 

for the deposits, the FDIC will pay the depositor directly 

by check up to the insured balance in each account. 

Such payments usually begin within a few days after 

the bank 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 after 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 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 frst 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. 

24 
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 after an account 

owner dies? 

The FDIC insures a deceased person’s accounts as if the 

person were still alive for six months after 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 benefciary of an informal 

revocable trust (e.g., POD account) affect insurance 

coverage? 

There is no grace period if the benefciary 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 

times two beneficiaries = $500,000). If one beneficiary 

dies, insurance coverage for the mother’s POD account 

is immediately reduced to $250,000 ($250,000 times one 

beneficiary = $250,000). 

How does the death of a benefciary of a formal revocable 

trust affect the insurance coverage? 

Like informal revocable trusts, the six-month grace period 

does not apply to the death of a benefciary named in a 

formal revocable trust account. However, the terms of 

the formal revocable trust may provide for a successor 

benefciary or some other redistribution of the trust 

deposits. Depending on these terms, the insurance 

coverage may or may not change. 

25 
FOR MORE 

INFORMATION 

FROM THE FDIC 

Call toll-free 

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

Hearing impaired line 

1-800-925-4618

Calculate insurance coverage 

Use the FDIC’s online Electronic Deposit Insurance 

Estimator (EDIE) at: https://edie.fdic.gov 

Read more about FDIC insurance online 

at: www.fdic.gov/deposit/deposits

View frequently asked questions on deposit 

insurance coverage at: www.fdic.gov/deposit/deposits

Order FDIC deposit insurance products online 

at: https://catalog.fdic.gov

Send questions by e-mail 

Use the FDIC’s online Customer Assistance 

Form at: https://ask.fdic.gov/

fdicinformationandsupportcenter/s/

Mail questions 

Federal Deposit Insurance Corporation 

Attn: Deposit Insurance Section 

550 17th Street, NW 

Washington, DC 20429 

FDIC-001-2014