SINGLE ACCOUNTS

Accounts owned by one person and titled only in that person’s name are single accounts. If Jack has a checking account, savings account and a CD at the same bank titled only in his name, all of these accounts are added together and insured up to $250,000.

• What if Jack had $100,000 in his checking account and another $200,000 in CDs at the bank?
  Assuming both accounts were owned and titled by only Jack, $50,000 of the total would be uninsured deposits because the total ($300,000) is $50,000 over the $250,000 FDIC insurance limit.
• What if Jack had $100,000 in his checking account at one bank and $200,000 in CDs at another bank? 
  Both accounts are covered because FDIC provides $250,000 of coverage for each bank.
• What if Jack had $100,000 in his checking account and another $200,000 in his IRA at the bank?
  Both accounts are covered because Self-Directed Retirement Accounts (IRAs and SEPs) are treated as separate titled accounts and FDIC provides $250,000 of coverage for Jack's checking account and $250,000 for Jack's IRA.
• What if Jack had $100,000 in an old IRA and another $100,000 in a SEP at the same bank?
  It appears both would be covered because both are IRAs and the total is less than $250,000.

JOINT ACCOUNTS

Each person’s share of each joint account, with the same or different co-owners at the same insured bank, is added together and the total is insured up to $250,000. If Jack and Carol had $200,000 in their joint checking account and $200,000 in joint owned and titled CDs, all at one bank, all $400,000 would be insured because the total of their individual shares was not greater then $500,000.

REVOCABLE TRUST ACCOUNTS

There can either be payable-on-death (POD) accounts or estate planning trusts (living trust, family trusts) whereby, if certain conditions are met, the accounts are insured up to $100,000 for each owner for each qualifying beneficiary. Qualifying beneficiaries are the owner’s spouse and (either natural or adopted or step) child, grandchild, parent, sibling.

Note: There are different ways to maximize FDIC coverage and the place to ask questions is at the bank. This summary is only for educational purposes and is not intended as legal advice.

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