FEDERAL DEPOSIT INSURANCE CORPORATION

YOUR 

INSURED

DEPOSITS

UPDATED APRIL 1, 2024
IMPORTANT INFORMATION ABOUT 

THIS BROCHURE

Your Insured Deposits describes Federal Deposit Insurance 

Corporation (FDIC) deposit insurance coverage for the 

most common accounts offered to consumers. Additional 

information about deposit insurance is available on the FDIC 

public website, www.fdic.gov, including Deposit Insurance 

at a Glance. If you have questions about your coverage, you 

can call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). 

In addition, the FDIC Electronic Deposit Insurance Estimator 

(EDIE) is a simple tool that can help you calculate your deposit 

insurance coverage. It is available at https://edie.fdic.gov. 

Depositors should know 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.

Please Note: This brochure is not intended as a legal 

interpretation of the FDIC laws and regulations, nor is it 

intended to provide estate planning advice. Depositors 

seeking such assistance should contact a financial or 

legal advisor.

The information in this brochure is based on the 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brochure may become outdated.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 website at https://www.

fdic.gov/resources/deposit-insurance/brochures/insureddeposits/index.html, will be updated immediately, if rule 

changes affecting FDIC insurance coverage are made.

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 specific bank or 

savings association:

y Call the FDIC toll-free: 1-877-ASK-FDIC (1-877-275-3342)

y Use FDIC “BankFind” at: https://banks.data.fdic.gov/

bankfind-suite/bankfind

y Look for the FDIC official sign where deposits are received

y Beginning January 1, 2025, look for the FDIC official digital 

sign on bank websites, bank applications, and, where 

applicable, certain bank ATMs.

FDIC-Insured – Backed by the full faith and credit of the U.S. Government
WHAT IS THE FDIC? .......................................2

FDIC INSURANCE COVERAGE BASICS ..............2

OWNERSHIP CATEGORIES .............................3

SINGLE ACCOUNTS.................................................4

CERTAIN RETIREMENT ACCOUNTS ........................5

JOINT ACCOUNTS...................................................7

TRUST ACCOUNTS..................................................9

EMPLOYEE BENEFIT PLAN ACCOUNTS ................14

CORPORATION/PARTNERSHIP/UNINCORPORATED 

ASSOCIATION ACCOUNTS ....................................16

GOVERNMENT ACCOUNTS ...................................18

PUTTING IT ALL TOGETHER: USING MULTIPLE 

OWNERSHIP CATEGORIES ........................... 19

UNIQUE OWNERSHIP SCENARIOS ................ 22

FREQUENTLY ASKED QUESTIONS................. 25

TABLE OF CONTENTS

See back cover for more resources available from the FDIC.
2

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 INSURANCE COVERAGE 

BASICS

FDIC insurance covers depositor 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 deposits received at an 

insured bank, but does not cover investments, 

even if they were purchased at an insured bank.

The FDIC insures:

y Checking Accounts

y Negotiable Order of Withdrawal (NOW) Accounts

y Savings Accounts

y Money Market Deposit Accounts (MMDAs)

y Time Deposits, such as Certificates of Deposit (CDs)

y Cashier’s Checks, Money Orders, and other 

official items issued by a bank

The FDIC does not insure:

y Stock Investments

y Bond Investments

y Mutual Funds

y Crypto Assets 

y Life Insurance Policies

y Annuities
3

y Municipal Securities

y Safe Deposit Boxes, or their contents

y U.S. Treasury Bills, Bonds, or Notes*

* These investments are not insured by the FDIC, but they are backed by the 

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

The standard maximum 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 another separately chartered 

insured bank. For example, if a person has a 

certificate of deposit at Bank A and has a certificate 

of deposit at Bank B, the accounts 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.

y Single Accounts

y Certain Retirement Accounts

y Joint Accounts 

y Trust Accounts

y Employee Benefit Plan Accounts

y Corporation/Partnership/Unincorporated 

Association Accounts

y Government Accounts
4

SINGLE ACCOUNTS

A Single Account is a deposit owned by one person 

with no beneficiaries. This ownership category 

includes:

y An account held in one person’s name only, 

with no beneficiaries 

y 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 (See page 22 for 

a discussion on pass-through accounts.) 

y An account held in the name of a business that 

is a sole proprietorship (e.g., a “Doing Business 

As” [or DBA] account)

y An account established for or representing a 

deceased person’s funds — commonly known 

as a Decedent’s Estate Account

y An account that fails to qualify for separate 

coverage under another ownership category

If an account title identifies 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 Account.

The FDIC adds together the balances in all Single 

Accounts owned by the same person at the same 

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

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

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 Trust Account.

Note on Beneficiaries
5

Explanation

Marci Jones has four Single Accounts at the same 

insured bank, including one account in the name of 

her sole proprietorship. The FDIC insures deposits 

owned by a sole proprietorship as a 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.

CERTAIN RETIREMENT ACCOUNTS

Deposits in a retirement account are insured 

under the Certain Retirement Accounts ownership 

category only if the account qualifies as one of the 

following:

y Individual Retirement Account (IRA):

» Traditional IRA

» Roth IRA

» Simplified Employee Pension (SEP) IRA

» Savings Incentive Match Plans for Employees 

(SIMPLE) IRA

y Self-directed defined contribution plan account: 

» Self-directed 401(k) plan

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

401(k) plan

» Self-directed defined contribution profitsharing plan

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

account) designed for self-employed individuals

y 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 deposits in retirement 

accounts listed above owned by the same 

person at the same insured bank and insures 

the total amount up to a maximum of $250,000. 

Beneficiaries can be named on these accounts, 

but that does not increase the amount of the 

deposit insurance coverage. 

“Self-directed” means 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.
6

The FDIC considers an account to be self-directed, 

if a retirement plan participant has the right to 

choose a particular bank’s deposit accounts as an 

option. For example:

y If a plan has deposit accounts at a particular 

insured bank as its default 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.

y If a plan consists only of a single employer/

employee, and the employer establishes the 

plan with a single option of deposit accounts at a 

particular insured bank, then the plan would be 

considered self-directed for insurance coverage 

purposes.

The following types of deposits do not qualify as

Certain Retirement Accounts:

y A plan for which the only investment vehicle is 

the deposit accounts of a particular bank, so that 

participants have no choice of investments.

y 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 Benefit Plan accounts.

y Defined benefit plan deposits (plans for which 

the benefits are determined by an employee’s 

compensation, years of service, and age), which 

are insured as Employee Benefit Plan accounts.

y Defined contribution plans that are not selfdirected, which are insured as Employee Benefit 

Plan Accounts.

EXAMPLE 2: Certain Retirement Accounts

Account 

Title

Account

Balance

Bob Johnson’s Roth IRA $180,000

Bob Johnson’s Traditional IRA $75,000

Total $255,000

Amount Insured $250,000

Amount Uninsured $5,000
7

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 $255,000. The FDIC insures the total balance 

of Bob’s deposits in these certain retirement 

accounts up to $250,000, which leaves $5,000 of his 

deposits uninsured.

JOINT ACCOUNTS

A Joint Account is a deposit owned by two or more 

people with no beneficiaries. 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 have personally signed, which may 

include signing electronically, a deposit account 

signature card, or alternatively, the insured bank 

has information in its deposit account records 

establishing co-ownership of the account. This 

requirement does not apply to CDs or accounts 

established by an agent, nominee, guardian, 

custodian, executor, or conservator.

If all of these requirements are met, each coowner’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.
8

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 (either together 

or with any other individuals).

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.

EXAMPLE 3: Joint Account

Account 

Title

Deposit 

Type

Account 

Balance

Share per 

Owner

Mary and John Smith MMDA $230,000 $115,000

Mary or John Smith Savings $250,000 $125,000

Mary or John 

or Robert Smith CD $270,000 $90,000

Total $750,000

Insurance Coverage for Each Owner is Calculated as Follows:

Owners

Total of all 

Ownership 

Shares

Amount

Insured

Amount

Uninsured

Mary $330,000 $250,000 $80,000

John $330,000 $250,000 $80,000

Robert $90,000 $90,000 $0

Total $750,000 $590,000 $160,000

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 Trust Account.

Note on Beneficiaries
9

Explanation

y The total amount in each joint account is divided

by the number of co-owners

y Mary’s ownership share in all joint accounts 

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

1/2 of the savings account ($125,000), and 1/3 of 

the CD ($90,000), for a total of $330,000. Since her 

coverage in the joint account ownership category 

is limited to $250,000, $80,000 is uninsured

y John’s ownership share in all joint accounts 

is the same as Mary’s, so $80,000 of John’s 

deposits is uninsured

y Robert’s ownership share in all joint accounts 

equals 1/3 of the CD ($90,000), so his share is fully 

insured

TRUST ACCOUNTS

Trust Accounts are deposits held by one or more 

owners under either an informal revocable trust 

(e.g., Payable on Death (POD) and In Trust For 

(ITF) accounts), a formal revocable trust, or an 

irrevocable trust that names beneficiaries. Other 

non-testamentary trust arrangements (e.g., Interest 

on Lawyers’ Trust Accounts [IOLTAs]) are addressed 

in the Pass-through Insurance section of this 

brochure.

IMPORTANT: As of April 1, 2024, the maximum 

insurance coverage for a trust owner with five or 

more beneficiaries is $1,250,000 per owner. This 

coverage change applies to both existing and 

new trust accounts, including CDs (regardless 

of maturity date). Depositors can name as 

many beneficiaries as they wish, however the 

coverage limit will not exceed $1,250,000 as of 

April 1, 2024, regardless of the maturity date or 

the date the CD was purchased.

For Trust Accounts, the term “owner” also means 

the grantor, settlor, or trustor of the trust. If a trust 

has more than one owner, each owner’s insurance 

coverage is calculated separately. 

Trust Accounts include: 

y 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 a deposit account 

agreement, directing the bank to transfer the 

funds in the account to one or more named 

beneficiaries upon the owner’s death.
10

y 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 

identified beneficiaries upon the owner’s death. 

These trusts typically become irrevocable upon 

the owner’s death.

y Irrevocable Trusts are deposit accounts held 

in connection with a trust established by statute 

or a written trust agreement in which the owner 

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 formal 

revocable trust. Deposit insurance coverage for 

irrevocable trust deposits is calculated in the 

same manner as revocable trust deposits. The 

rules no longer consider contingencies or the 

grantor’s retained interest.

Coverage and Requirements for Trust

Accounts

In general, each owner of a Trust Account(s) is 

insured up to $250,000 per unique (different) 

eligible beneficiary, up to a maximum of $1,250,000 

for five or more beneficiaries. A trust (either 

revocable or irrevocable) must meet all of the 

following requirements to be insured under the 

Trust Account category.

1. Title Indicates Trust Relationship (for formal 

trusts only). For formal trust accounts, including 

revocable and irrevocable trusts, the account 

title at the bank must indicate that the account 

is held pursuant to a trust relationship. This 

requirement can be met by using the terms such 

as living trust, family trust, irrevocable 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.

For informal revocable trusts (e.g., POD accounts), 

the account title may include POD/ITF or similar 

language, but it is no longer required. 

2. Beneficiaries Identified. For informal revocable 

trusts, the beneficiaries must be named in the 

deposit account records of the bank. For formal 

trust accounts, both revocable and irrevocable, 
11

beneficiaries must be identified in the formal 

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 beneficiaries, 

provided the specific names and number of 

eligible beneficiaries can be determined. The 

FDIC does not limit the number of beneficiaries a 

depositor may identify on a trust at a depository 

institution for trust accounts even if there are 

more than five beneficiaries. However, coverage 

is limited to $250,000 per beneficiary up to a 

maximum of $1,250,000 as described below.

3. Beneficiary Eligibility. To qualify as an eligible 

beneficiary, for purposes of deposit insurance 

coverage, a beneficiary must be a living person, 

a charity, or a non-profit organization. If a 

charity or non-profit organization is named as a 

beneficiary, it must qualify as such under Internal 

Revenue Service (IRS) regulations. Please note if 

a single owner names the same beneficiary on 

multiple trust accounts at the same bank, that 

beneficiary only counts once when determining 

coverage. 

Trust Deposit Insurance Coverage

A trust owner’s trust deposits are insured for 

$250,000 for each eligible beneficiary, up to a 

maximum of $1,250,000 if five or more eligible 

beneficiaries are named. This limit applies to the 

combined interests of all beneficiaries the owner 

has named in revocable and irrevocable trust 

accounts at the same bank. 

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

insurance coverage is calculated separately. 

Deposit insurance coverage for each trust owner 

is determined by multiplying $250,000 times the 

number of eligible beneficiaries, regardless of 

the dollar amount or percentage allotted to each 

beneficiary, with an overall maximum insurance 

amount of $1,250,000 for five or more beneficiaries. 

A trust owner can identify as many beneficiaries as 

they like; however, for deposit insurance purposes, 

a trust account owner that identifies five or more 

eligible beneficiaries will not be insured beyond 

$1,250,000 per bank. In calculating coverage, a 

beneficiary only counts once per owner, even if the 

same beneficiary is included multiple times on trust 

accounts at the same bank. 
12

Explanation

John Jones has three trust accounts – one formal 

revocable trust, one informal revocable trust, 

and one irrevocable trust at the same insured 

bank. Between these three trust accounts, John 

has named six eligible beneficiaries (five different 

people and a charity). Even though six beneficiaries 

are named, the maximum insurance coverage is 

calculated as follows: 1 owner x 5 beneficiaries x 

$250,000 = $1,250,000. John Jones has $30,000 

uninsured because his total balance is $1,280,000, 

which exceeds the insurance limit by $30,000.

FDIC regulations do not limit the number of 

beneficiaries that a trust owner identifies for their 

estate planning purposes. (In this example, John 

Jones identified six.) However, when calculating 

Maximum Insurance Coverage per Trust Owner

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 or More Beneficiaries $1,250,000

EXAMPLE 4: Multiple Trust Accounts, five or more beneficiaries

Account

Title Owner Beneficiaries

Deposit 

Type

Account 

Balance

John Jones 

(Living Trust) John

Jack, Janet, 

Ron, Sue, Bob MMDA $10,000

John Jones

(POD) John Jack, Janet Savings $20,000

John Jones 

(Irrevocable 

Charitable 

Trust) John

IRSrecognized 

charity CD $1,250,000

Total $1,280,000

Amount 

Insured $1,250,000

Amount 

Uninsured $30,000

When calculating coverage for Trust Accounts, 

the FDIC uses the formula:

# of Owners x # of Beneficiaries x $250,000 = 

Amount Insured (not to exceed $1,250,000 per 

owner for all trust accounts)
13

insurance coverage, a trust owner’s per-bank 

insurance limit for trust accounts is maximized 

when they identify five eligible beneficiaries.

Explanation

Each owner’s share of each trust account is added 

together and each owner receives up to $250,000 of 

insurance coverage per eligible beneficiary.

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

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

100% of Account 2)

Because Paul named two eligible beneficiaries, his 

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

x 2 beneficiaries). Since his share of Account 1 

($350,000) is less than $500,000, he is fully insured.

Because Lisa has named three eligible beneficiaries 

between Accounts 1 and 2, her maximum insurance 

coverage is $750,000 ($250,000 x 3 beneficiaries). 

Since her share of both accounts ($800,000) 

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

If you have a more complex trust structure, please 

contact the FDIC at 1-877-275-3342. 

Owners Beneficiaries Share Insured 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

EXAMPLE 5: Multiple Trust Accounts, fewer than five 

beneficiaries

Account 

Number

Account 

Owner(s)

Account 

Beneficiaries

Account 

Balance

1

Paul & Lisa Li

(Living Trust)

John & 

Sharon Li $700,000

2

Lisa Li

(POD)

Sharon & 

Bill Li $450,000
14

EMPLOYEE BENEFIT PLAN ACCOUNTS

An Employee Benefit Plan Account is a deposit 

of a pension plan, defined benefit plan, or other 

employee benefit plan that is not self-directed. An 

account insured under this category must meet the 

definition of an employee benefit 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:

y The investment and management decisions 

relating to the account must be controlled by 

a plan administrator (not self-directed by the 

participant).

y The plan administrator must maintain 

documentation supporting the plan and the 

beneficial interests of the participants.

y The account must be properly titled as an 

employee benefit plan 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 

An owner who identifies a beneficiary as having 

a life estate interest in a formal revocable trust 

is entitled to insurance coverage up to $250,000 

for that beneficiary. A life estate beneficiary is a 

beneficiary who has the right to receive income 

from the trust or to use trust deposits during the 

beneficiary’s lifetime, where other beneficiaries 

receive the remaining trust deposits after the life 

estate beneficiary 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: 1 owner x $250,000 x 3 

different beneficiaries = $750,000.

Life Estate Beneficiaries
15

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 first 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.

Explanation

This employee benefit plan’s $700,000 deposit 

is fully insured. Dr. Todd’s share of the $700,000 

deposit (35% of $700,000 = $245,000) is less than 

$250,000. All of the other participants’ shares of the 

deposit are also less than $250,000. Therefore, the 

entire deposit is insured.

To determine the maximum amount this employee 

benefit plan can deposit at one bank and ensure 

all of the funds are fully covered, divide $250,000 

by the percentage share of the plan participant 

with the largest interest in the plan. In this example, 

EXAMPLE 6: Employee Benefit Plan That Qualifies for 

Pass-Through Coverage

Happy Pet Vet Clinic has a profit-sharing plan for its employees

Account Balance

Happy Pet Vet Clinic Benefit Plan $700,000

Plan 

Participants

Plan 

Share

Share of 

Deposits

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
16

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 benefit plan’s deposits are 

insured should consult with the plan administrator.

CORPORATION/PARTNERSHIP/ 

UNINCORPORATED ASSOCIATION 

ACCOUNTS

Deposits owned by corporations, partnerships, 

and unincorporated associations, including forprofit and not-for-profit organizations, as well 

as “Subchapter S,” “Limited Liability (LLC),” and 

"Professional (PC)" Corporations 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.

All deposits owned by a corporation, 

partnership, or unincorporated association at 

the same bank are combined and insured up to 

$250,000.

Employee benefit plan deposits that do not 

qualify for pass-through 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 files 

independent of any specific ownership interest 

in the plan.

Health and Welfare Plans
17

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.

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.

Sole Proprietorship
18

GOVERNMENT ACCOUNTS

The category known as Government Accounts 

(also called Public Unit accounts) includes deposit 

accounts owned by:

y The United States, including federal agencies

y 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

y A Native American tribe

Insurance coverage of a Government Account is 

unique in that the insurance coverage extends to 

the official custodian of the deposits belonging to 

the government or public unit, rather than to the 

government unit itself.

Accounts held by an official custodian of a 

government unit will be insured as follows:

In-state accounts:

y Up to $250,000 for the combined amount of 

all time and savings accounts (including NOW 

accounts)

y Up to $250,000 for the combined amount of 

all interest-bearing 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:

y Up to $250,000 for the combined amount of all 

deposit accounts

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:

https://www.fdic.gov/resources/deposit-insurance/

accounts-government-depositors/index.html.

A Negotiable Order of Withdrawal (NOW) account 

is a savings deposit – not a demand deposit 

account.

Negotiable Order of Withdrawal (NOW) account
19

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 below 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 held in 

qualified 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.

EXAMPLE 7: Insurance Coverage for a Husband and Wife 

with Deposit Accounts in Multiple Ownership Categories

Title

Account 

Ownership

Category Owner(s) Beneficiaries

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

Trust 

Account Husband Wife $250,000

Wife POD

Trust 

Account Wife Husband $250,000

Husband 

& Wife 

Formal 

Revocable 

Trust

Trust 

Account

Husband 

& Wife Child 1, 2, 3 $1,500,000

Husband 

IRA

Certain 

Retirement 

Account Husband $250,000

Wife IRA

Certain 

Retirement 

Account Wife $250,000

Total $3,500,000
20

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. The 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. The 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.

Trust Accounts Ownership Category

To determine insurance coverage for trust accounts, 

the FDIC first determines the amount of the trust’s 

deposits belonging to each owner. In this example:

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

Husband’s POD account naming Wife as 

beneficiary and 50% of the Husband and Wife 

Living Trust account identifying Child 1, Child 2, 

and Child 3 as beneficiaries)

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

POD account naming Husband as beneficiary 

and 50% of the Husband and Wife Living Trust 

account identifying Child 1, Child 2, and Child 3 

as beneficiaries)

Second, the FDIC determines the number of 

beneficiaries for each owner. In this example, each 

owner has four unique beneficiaries (Spouse, Child 

1, Child 2, and Child 3). When a trust owner names 

five or fewer unique beneficiaries, the owner is 

insured up to $250,000 for each unique beneficiary. 

The Husband’s share of the revocable trust 

deposits is insured up to $1,000,000 ($250,000 x 4 

beneficiaries = $1,000,000). The Wife’s share of the 

revocable trust deposits is insured up to $1,000,000 

($250,000 x 4 beneficiaries = $1,000,000).

All three trust accounts are fully insured.
21

Certain Retirement Accounts 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.
22

UNIQUE OWNERSHIP SCENARIOS

Pass-Through Deposit Insurance 

Coverage

“Pass-through” deposit insurance is a method of 

insuring depositors whose funds are placed and 

held at an FDIC-insured bank through a third party. 

Third parties in pass-through arrangements may 

include, but are not limited to:

y Parent acting as guardian for a minor child

y Lawyer or law firm holding client funds (IOLTA)

y Executors, estate administrators, or other similar 

roles 

y Agents, custodians, nominees, trustees (other 

than trustees of revocable or irrevocable trusts), 

or fiduciaries

y Companies that offer financial products or 

services through partnerships or arrangements 

with FDIC-insured banks

y Brokers who offer brokered CDs

y Companies that place their customers’ funds 

into different banks to help customers maximize 

their deposit insurance coverage

If the following requirements are satisfied, the 

deposited funds would be insured to the same 

extent as if deposited at the bank in the name of 

the underlying owner(s):

1. A relationship providing a basis for passthrough coverage is expressly disclosed in the 

bank’s deposit account records. This is often 

accomplished through account titling indicating 

that a deposit account is held, for example, as 

agent or for the benefit of others.

2. The identity and ownership interest of each 

owner is ascertainable from the bank’s deposit 

account records or records maintained by the 

third party (or another person or entity that has 

agreed to maintain records on its behalf).

3. The underlying owners, rather than the third 

party that maintains the account at the insured 

bank, actually own the funds.

The FDIC determines whether these requirements 

are satisfied at the time of an insured bank’s failure.
23

Deposits insured on a pass-through basis are 

added to any other deposits that the owner holds 

in the same ownership category at the same 

bank for purposes of the deposit insurance limit. 

For example, if a broker purchases a CD for a 

single owner at an insured bank, and that person 

maintains a separate checking account in the 

Single Account category at the same bank, the two 

balances would be added together and insured for 

up to $250,000 in the Single Account category.

Health Savings Accounts

What is a Health Savings Account?

A Health Savings Account (HSA) is an IRS qualified 

tax-exempt trust or custodial deposit that is 

established with a qualified 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 beneficiaries 

have been named. If a depositor opens an HSA and 

names beneficiaries either in the HSA agreement 

or in the bank’s records, the FDIC would insure 

the deposit under the Trust Account category. If a 

depositor opens an HSA and does not name any 

beneficiaries, the FDIC would insure the deposit 

under the Single Account category. For an HSA 

established by an employer for employees, the 

FDIC would insure the HSA as an Employee Benefit 

Plan Account.

How should an HSA be titled?

The identification of a deposit as an HSA, such 

as “John Smith’s HSA,” is sufficient for titling the 

deposit to be eligible for Single Account or Trust 

Account coverage, depending on whether eligible 

beneficiaries are named.

Mortgaging Servicing Accounts

What is a Mortgage Servicing Account? 

Mortgage Servicing Accounts are accounts 

maintained by a mortgage servicer, in a custodial 

or other fiduciary capacity, which are composed of 

payments by mortgagors (borrowers) of principal 

and interest (P&I).
24

How does the FDIC insure Mortgage Servicing 

Accounts?

The account is insured to the mortgage investors 

for the cumulative balance paid into the account by 

borrowers, or in order to satisfy borrowers’ principal 

or interest obligations to the lender, up to $250,000 

per mortgagor. 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. The $2,000,000 

aggregate balance in the mortgage servicing 

account is fully insured to the lender because 

each borrower’s payment of $2,000 (P&I) is insured 

separately for up to $250,000.

Although mortgage servicers often collect tax 

and insurance (T&I) payments, these accounts 

are separately maintained and not considered 

mortgage servicing accounts for deposit insurance 

purposes. The T&I deposits belong to the 

borrower’s 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 

the borrowers.
25

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 up to the insured 

limit.

If the FDIC finds a bank to acquire the failed 

bank, it will try to arrange a Purchase and 

Assumption Transaction, under which a healthy 

bank acquires the insured deposits of the failed 

bank. Insured depositors of the failed bank 

immediately become depositors of the acquiring 

bank and have access to their insured funds. The 

acquiring 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 acquiring institution has no obligation 

to maintain either the failed bank's 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.

y If the FDIC cannot find a bank to acquire the 

failed bank’s deposits, the FDIC will pay the 

depositors directly by check up to the insured 

balance in each account. Such payments usually 

begin within a few days after the bank's 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 grace period and are renewed for the 

same term and in the same dollar amount (either 

with or without accrued interest) continue to be 
26

separately insured until the first maturity date after 

the six-month grace 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.

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 beneficiary of an 

informal revocable trust (e.g., POD account) 

affect insurance coverage?

There is no grace period if the beneficiary 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 x 2 beneficiaries = $500,000). 

If one beneficiary dies, insurance coverage for the 

mother’s POD account is immediately reduced to 

$250,000 ($250,000 x 1 beneficiary = $250,000).

How does the death of a beneficiary 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 beneficiary 

named in a formal revocable trust account. 

However, the terms of the formal revocable 

trust may provide for a successor beneficiary or 

some other redistribution of the trust deposits. 

Depending on these terms, the insurance coverage 

may or may not change.
27

NOTES
28
29
FDIC-001-2024

FEDERAL DEPOSIT INSURANCE CORPORATION

FOR MORE INFORMATION FROM THE FDIC

Call toll-free

1-877-ASK-FDIC 

(1-877-275-3342)

Calculate deposit insurance coverage using 

the FDIC online Electronic Deposit Insurance 

Estimator (EDIE)

https://edie.fdic.gov

Read more about FDIC deposit insurance online

https://www.fdic.gov/resources/deposit-insurance/

View frequently asked questions on deposit 

insurance coverage

www.fdic.gov/resources/deposit-insurance/faq/

index.html

Order FDIC deposit insurance products online

https://catalog.fdic.gov

Submit deposit insurance questions online using 

the Information and Support Center

https://ask.fdic.gov/

fdicinformationandsupportcenter/s/

Submit deposit insurance questions by U.S. Mail 

Federal Deposit Insurance Corporation 

Attn: Deposit Insurance Unit

550 17th Street, NW 

Washington, DC 20429

For more deposit insurance information: