Does My Deposit Qualify for insurance?
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 you
against the loss of your deposits if an FDIC-insured bank or savings association
fails. FDIC insurance is backed by the full faith and credit of the United
States government. The term “insured bank” is used in this brochure to mean
any bank or savings association with FDIC insurance.
To check whether your bank or savings association is insured by FDIC,
call toll-free 1-877-275-3342, use "Bank Find" at
or look for the official FDIC sign where deposits are received.
Why Is FDIC Insurance Important to You?
All FDIC-insured banks must meet high standards for financial
strength and stability. The FDIC, with other federal and state
regulatory agencies, regularly reviews the operations of insured
banks to ensure these standards are met. Even with these safeguards,
some insured banks fail. If your insured bank fails, FDIC insurance
will cover your deposits, dollar for dollar, including principal
and any accrued interest, up to the insurance limit.
Historically, insured deposits are available to customers of a
failed bank within just a few days. Since the start of the FDIC in
1933, no depositor has ever lost a penny of insured deposits.
What Does the FDIC Insure?
The FDIC insures all deposits at insured banks, including checking,
NOW and savings accounts, money market deposit accounts, and certificates
of deposit (CDs), up to the insurance limit.
The FDIC does not insure the money you invest in stocks, bonds, mutual
funds, life insurance policies, annuities, or municipal securities, even
if you purchased these products from an insured bank.
Basic Insurance Amount Is $100,000
The basic insurance amount is $100,000 per depositor per insured bank.
Certain retirement accounts, such as Individual Retirement Accounts, are
insured up to $250,000 per depositor per insured bank.
If you and your family have $100,000 or less in all of your
deposit accounts at the same insured bank, you do not need to worry about
your insurance coverage -- your deposits are fully insured.
Coverage Over $100,000
The FDIC provides separate insurance coverage for deposit accounts held
in different categories of ownership.
You may qualify for more than
$100,000 in coverage at one insured bank if you own deposit accounts in
different ownership categories.
Common Ownership Categories
The most common ownership categories are:
These are deposit accounts owned by one person and titled in that person’s
name only. All of your single accounts at the same insured bank are added
together and the total is insured up to $100,000. For example, if you have a
checking account and a CD at the same insured bank, and both accounts are in
your name only, the two accounts are added together and the total is insured
up to $100,000.
Note: Retirement accounts and qualifying trust accounts are not included
in this ownership category.
Certain Retirement Accounts
These are deposit accounts owned by one person and titled in the name of
that person’s retirement plan. Only the following types of retirement plans
are insured in this ownership category:
- Individual Retirement Accounts (IRAs) including traditional IRAs,
Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings
Incentive Match Plans for Employees (SIMPLE) IRAs
- Section 457 deferred compensation plan accounts (whether self-directed or not)
- Self-directed defined contribution plan accounts
- Self-directed Keogh plan (or H.R. 10 plan) accounts
All deposits that an individual has in any of the types of retirement plans
listed above at the same insured bank are added together and the total is insured
up to $250,000. For example, if an individual has an IRA and a self-directed
Keogh account at the same bank, the deposits in both accounts would be added
together and insured up to $250,000.
Naming beneficiaries on a retirement account does not increase deposit insurance coverage.
Note: For information about FDIC insurance coverage for a type of retirement
plan not listed above, refer to the FDIC resources on the back of this brochure.
These are deposit accounts owned by two or more people. If both owners have
equal rights to withdraw money from a joint account, each person’s shares of
all joint accounts at the same insured bank are added together and the total is
insured up to $100,000.
If a couple has a joint checking account and a joint savings account at the
same insured bank, each co-owner's shares of the two accounts are added together
and insured up to $100,000, providing up to $200,000 in coverage for the couple's
Example: John and Mary have a $220,000 CD at an insured bank. Under FDIC rules,
each person's share of each joint account is considered equal unless otherwise
stated in the bank’s records. John and Mary each own $110,000 in the joint account
category, putting a total of $20,000 ($10,000 for each) over the insurance limit.
Note: Jointly owned qualifying trust accounts are not included in this ownership category.
Revocable Trust Accounts
These are deposits held in either payable-on-death (POD) accounts or living trust accounts.
Payable-on-death (POD) accounts – also known as testamentary
or Totten Trust accounts – are the most common form of revocable trust deposits. These informal
revocable trusts are created when the account owner signs an agreement – usually part of the
bank's signature card – stating that the deposits will be payable to one or more named beneficiaries
upon the owner's death.
Living trusts – or family trusts – are formal revocable
trusts created for estate planning purposes. The owner of a living trust controls the deposits
in the trust during his or her lifetime.
Note: Determining coverage for living trust accounts can be complicated and requires more
detailed information about the FDIC's insurance rules than can be provided in this publication.
If you have a living trust account, contact the FDIC at 1-877-275-3342 for more information.
Deposit insurance coverage for revocable trust accounts is based on each owner's trust
relationship with each qualifying beneficiary. While the trust owner is the insured party,
coverage is provided for the interests of each beneficiary in the account. The FDIC insures
the interests of each beneficiary up to $100,000 for each owner if all of the following
requirements are met:
- The beneficiary is the owner's spouse, child, grandchild, parent, or sibling.
Adopted and stepchildren, grandchildren, parents, and siblings also qualify.
In-laws, grandparents, great-grandchildren, cousins, nieces and nephews, friends,
organizations (including charities), and trusts do not qualify.
- The account title must indicate the existence of the trust relationship by including
a term such as payable on death, in trust for, trust, living trust, family trust, or
an acronym such as POD or ITF.
- For POD accounts, each beneficiary must be identified by name in the bank's account records.
If any of these requirements are not met, the entire amount in the account, or any portion of the
account that does not qualify, would be added to the owner's other single accounts, if any, at the same
bank and insured up to $100,000. If the revocable trust account has more than one owner, the FDIC would
insure each owner's share as his or her single account.
Note: The following example applies to POD accounts only. Coverage may be different for some living trusts.
Example: Bill has a $100,000 POD account with his wife Sue as beneficiary. Sue has a $100,000 POD
account with Bill as beneficiary. In addition, Bill and Sue jointly have a $600,000 POD account with
their three children as equal beneficiaries.
|Bill POD to Sue
|Sue POD to Bill
|Bill & Sue POD to 3 children
These three accounts totaling $800,000 are fully insured because each owner is entitled to $100,000 of
coverage for the interests of each qualifying beneficiary in the accounts. Bill has $400,000 of insurance
coverage ($100,000 for the interests of each qualifying beneficiary – his wife in the first account and his
three children in the third account). Sue also has $400,000 of insurance coverage ($100,000 for the interests
of each qualifying beneficiary – her husband in the second account and her three children in the third
When calculating coverage for revocable trust accounts, be careful to avoid these common mistakes:
- Do not assume that coverage is calculated as $100,000 times the number of people –owner(s) and
beneficiary(ies) – named on a trust account. Coverage is provided for the interest of each
qualifying beneficiary named by each owner. Additional coverage is not provided to the owners
for naming themselves as owners. For example, a father's POD account naming two sons as equal
beneficiaries is insured to $200,000 only -- $100,000 for the interest of each qualifying beneficiary.
- Do not assume that the FDIC insures POD and living trust accounts separately. In applying the $100,000
per-beneficiary insurance limit, the FDIC combines an owner's POD accounts with the living trust accounts
that name the same beneficiaries at the same bank.
For More Information from the FDIC
Call toll-free at:
from 8 am until 8 pm (Eastern Time)
Monday through Friday
Hearing Impaired Line:
Calculate your insurance coverage using the
Request a copy of
FDIC's online Electronic Deposit
Insurance Estimator at:
"Your Insured Deposits:
FDIC's Guide to Deposit Insurance Coverage,"
which provides a detailed description
of the ownership categories, by calling toll free at:
For downloadable, camera-ready files of
"Your Insured Deposit" and
"Insuring Your Deposit,"
Reprintable FDIC Brochures" at
Read more about FDIC insurance online at:
Order FDIC deposit insurance products online at
Send your questions by e-mail using the FDIC's online Customer Assistance Form at:
Mail your questions to:
Federal Deposit Insurance Corporation
Attn: Deposit Insurance Outreach
550 17th Street, NW
Washington, DC 20429-9990