Finance Questions - FDIC rules for Joint Accounts

FDIC Rules for Joint Accounts

How are joint accounts treated for FDIC insurance purposes?

The interests in all joint accounts at the same institution are added together and insured up to $100,000.

In case of a joint account owned by two persons, the maximum insurance coverage would be $200,000. This coverage is separate from, and in addition to, the insurance coverage under their individual accounts.

Accounts are shared equally unless stated differently on account records.

Example: Depositor A is an equal joint owner in four accounts at First Savings Bank

Account Owner	Type of Account	Amount	A' share
A & B	Savings	$ 100,000	$ 50,000
B & A	CD	$ 25,000	$ 12,500
A & B & C	Now	$ 75,000	$ 25,000
D & A Partnership	Checking	$ 80,000	$ 40,000
Total Value			$ 127,500
Maximum FDIC Insurance			($100,000)
Uninsured Amount:			$ 27,500

Assuming that their jointly held accounts are at the same institution, B, C, and D's interests in the joint accounts are fully insured, since their ownership interests are all less than the $100,000 maximum FDIC insurance limit.

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