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FDIC Deposit Insurance Coverage
New Deposit Insurance Limits
The Dodd-Frank Wall Street Reform and Consumer Protection Act signed by President Obama on July 21, 2010, made permanent the current standard maximum deposit insurance amount (SMDIA) of $250,000, which was otherwise scheduled to return to $100,000 on January 1, 2014. The FDIC coverage limit applies per depositor, per insured depository institution, for each account ownership category.
Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts
All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31,2010, through December 31,2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.
The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.
For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDICinsured funds.
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.
There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.
To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts.
Basic FDIC Deposit Insurance Coverage Limits*
| Single Accounts: $250,000 per owner
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| An account owned by a single member. This total includes the combined amounts in all savings, checking, money market, and certificate of deposit accounts. IRAs, joint accounts, and revocable trust accounts do not count toward this total. |
| Joint Accounts: $250,000 per co-owner
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| An account owned by more than one person, each with equal rights and access to the funds in the account. Each owner of the joint account receives up to $250,000 in coverage for their share of funds in the account. Therefore, the maximum coverage for jointly-owned accounts with two owners would $500,000; the maximum coverage for jointly-owned accounts with three owners would $750,000. |
| IRA and Certain Other Retirement Accounts: $250,000 per owner
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| Funds in an IRA account are eligible for separate insurance protection. These accounts are subject to special deposit and withdrawal rules. |
| Trust Accounts: $250,000 per owner per beneficiary subject to specific limitations and requirements
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| The funds in a Revocable Trust Account — also referred to as a Payable on Death account or P.O.D. — are paid to named beneficiaries in the event of the owner's death. While living, the owner has use of the funds and can revoke the trust (remove or change beneficiaries). If the beneficiaries of the account are a spouse, child, parent, sibling or grandchild of the owner, then the account funds are separately insured up to $250,000 per beneficiary. |
* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.
If you have questions about FDIC coverage limits and requirements, please visit the FDIC web site, call toll-free 1-877-ASK-FDIC, or ask a representative at Leader Bank.
How to Maximize FDIC Insurance Coverage
The basic coverage for deposits in an FDIC-insured community bank is up to $250,000 per
depositor and $250,000 per owner for certain retirement accounts, but the FDIC provides
separate coverage for deposit accounts held in different categories of ownership that allow a
customer to have more than $250,000 insured at the same community bank.
Basic examples of how depositors can expand their coverage beyond $250,000 include:
| Husband and Wife: Coverage Totaling $1,500,000 |
| Husband, Wife and Two Children: Coverage Totaling $3,250,000 |
| Husband, Wife and One Child: Coverage Totaling $2,500,000 |
| Parent and One Child: Coverage Totaling $1,250,000 |
| Grandfather, Grandmother, and Grandchild: Coverage Totaling $2,500,000 |
| Grandparent and Two Grandchildren: Coverage Totaling $1,750,000 |
| Husband and Wife: Coverage Totaling $1,500,000 |
| Individual Accounts: Wife |
$250,000 |
| Individual Accounts: Husband |
$250,000 |
| Joint Accounts: Husband & Wife* ** |
$500,000 |
| Revocable Trust Accounts: Husband as Trustee for Wife |
$250,000 |
| Revocable Trust Accounts: Wife as Trustee for Husband |
$250,000 |
| Total FDIC Coverage |
$1,500,000 |
| Husband, Wife and Two Children: Coverage Totaling $3,250,000 |
| Individual Accounts: Husband |
$250,000 |
| Individual Accounts: Wife |
$250,000 |
| Individual Accounts: Child One |
$250,000 |
| Individual Accounts: Child Two |
$250,000 |
| Joint Accounts: Husband and Wife* |
$250,000 |
| Joint Accounts: Husband and Child One* |
$250,000 |
| Joint Accounts: Wife and Child Two* |
$250,000 |
| Revocable Trust Account: Husband as Trustee for Wife |
$250,000 |
| Revocable Trust Accounts: Husband as Trustee for Child One |
$250,000 |
| Revocable Trust Accounts: Husband as Trustee for Child Two |
$250,000 |
| Revocable Trust Accounts: Wife as Trustee for Husband |
$250,000 |
| Revocable Trust Accounts: Wife as Trustee for Child One |
$250,000 |
| Revocable Trust Accounts: Wife as Trustee for Child Two |
$250,000 |
| Total FDIC Coverage |
$3,250,000 |
| Husband, Wife and One Child: Coverage Totaling $2,500,000 |
| Individual Accounts: Husband |
$250,000 |
| Individual Accounts: Wife |
$250,000 |
| Individual Accounts: Child |
$250,000 |
| Joint Accounts: Husband and Wife* |
$250,000 |
| Joint Accounts: Husband and Child* |
$250,000 |
| Joint Accounts: Wife and Child* |
$250,000 |
| Revocable Trust Account: Husband as Trustee for Wife |
$250,000 |
| Revocable Trust Accounts: Husband as Trustee for Child |
$250,000 |
| Revocable Trust Accounts: Wife as Trustee for Husband |
$250,000 |
| Revocable Trust Accounts: Wife as Trustee for Child |
$250,000 |
| Total FDIC Coverage |
$2,500,000 |
| Parent and One Child: Coverage Totaling $1,250,000 |
| Individual Accounts: Parent |
$250,000 |
| Individual Accounts: Child |
$250,000 |
| Joint Accounts: Parent and Child* ** |
$500,000 |
| Revocable Trust Accounts: Parent as Trustee for Child |
$250,000 |
Total FDIC Coverage
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$1,250,000 |
| Grandfather, Grandmother, and Grandchild: Coverage Totaling $2,500,000 |
| Individual Accounts: Grandfather |
$250,000 |
| Individual Accounts: Grandmother |
$250,000 |
| Individual Accounts: Grandchild |
$250,000 |
| Joint Accounts: Grandfather and Grandmother* |
$250,000 |
| Joint Accounts: Grandfather and Grandchild* |
$250,000 |
| Joint Accounts: Grandmother and Grandchild* |
$250,000 |
| Revocable Trust Accounts: Grandfather as Trustee for Grandmother |
$250,000 |
| Revocable Trust Accounts: Grandfather as Trustee for Grandchild |
$250,000 |
| Revocable Trust Accounts: Grandmother as Trustee for Grandfather |
$250,000 |
| Revocable Trust Accounts: Grandmother as Trustee for Grandchild |
$250,000 |
Total FDIC Coverage
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$2,500,000 |
| Grandparent and Two Grandchildren: Coverage Totaling $1,750,000 |
| Individual Accounts: Grandparent |
$250,000 |
| Individual Accounts: Grandchild One |
$250,000 |
| Individual Accounts: Grandchild Two |
$250,000 |
| Joint Accounts: Grandparent and Grandchild One* |
$250,000 |
| Joint Accounts: Grandparent and Grandchild Two* |
$250,000 |
| Revocable Trust Account: Grandparent as Trustee for Grandchild One |
$250,000 |
| Revocable Trust Accounts: Grandparent as Trustee for Grandchild Two |
$250,000 |
| Total FDIC Coverage |
$1,750,000 |
In the examples shown above, actual title to each account must be in the name of the account holder named.
Each co-owner of a joint account must personally execute the signature card and must have equal withdrawal rights.
*Joint Account with right of survivorship.
**Each person insured to at least $250,000.
Community bank customers can bank with confidence at their local community bank
knowing their money is safe because it is insured by the FDIC and held in well-capitalized and
well-regulated institutions.
Leader Bank, N.A. is a well capitalized and regulated institution with a
5-Star Rating from BauerFinancial, Inc., Coral Gables, Florida, the nation’s
leading independent bank rating and research firm.
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