FDIC Insurance Rules

What are the rules for receiving FDIC insurance coverage?

The types of ownership listed below are entitled to FDIC insurance of up to $100,000 each: (deposits in different institutions are insured separately)

• Single
• Joint
• Revocable trust*
• Irrevocable trust*
• Traditional IRA & Roth IRA & profit sharing/money purchase plans (balances are combined for FDIC insurance)
• Pension plans
• Totten trusts, or transfer on death (TOD) accounts*
• Corporate
• Partnership

*Subject to specific rules discussed below.

There is an "EDIE" electronic deposit insurance estimator system on the FDIC website, which will tell you whether an account or group of accounts at a FDIC insured institution is fully insured, or not.

Any person or entity can have a FDIC insured account. US citizenship or residency is not required. The FDIC insures deposits in some, but not all, banks and savings associations. The insurance protects deposits that are payable in the United States. Securities, mutual funds, and similar types of investments are not covered by federal deposit insurance, but may be covered by other types of insurance. Deposits in different institutions are insured separately.

Deposits maintained in the different categories of legal ownership shown above are separately insured so you can have more than $100,000 insurance coverage in a single institution. However, opening up another account of the same type at the same institution cannot increase the FDIC insurance coverage. The use of social security numbers or tax identification numbers does not determine insurance coverage.

Traditional IRA, Roth IRA and profit sharing/money purchase funds are separately insured from any non-retirement funds the depositor may have at an institution. However, the IRA and profit sharing/money purchase accounts are combined for insurance purposes. The general rule for employee participants in pension and profit sharing plans is that they receive insurance for their share of the plan. Each participant's ascertainable interest in the plan's deposit is insured up to $100,000.