FDIC Deposit Insurance


By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor’s accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category.

For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit www.fdic.gov.

Here are some important links to utilize when evaluating your current banking situation.

General FDIC Insurance Coverage
Explains the general concept of FDIC insurance coverage and the basic limits for both interest bearing and non-interest bearing accounts.
Are My Deposits Insured?
Provides more detail information on ownership categories for both personal and corporate accounts.

FDIC Calculator
Determine your FDIC coverage for each FDIC-insured bank where you have deposit accounts. The calculator lets you know in a printable report whether your deposits are within or exceed coverage limits.
Premium Trust Account Coverage
InsurBanc has researched FDIC interpretations and legal opinions on this matter. Our Q & A is intended to provide guidance on this important topic to help ensure the safety of your deposits on this subject.

If you have specific questions concerning your FDIC insurance coverage, you can contact the FDIC at 1-877-ASK-FDIC (275-3342) or online.

General Frequently Asked Questions

Has the FDIC increased deposit insurance limits?
Yes, FDIC insurance limits for Certificates of Deposit, savings accounts and other bank deposits have permanently increased from $100,000 to $250,000 per depositor.

How can I determine if my deposit accounts are covered?
You can use the FDIC Calculator to determine your FDIC coverage for each FDIC-insured bank where you have deposit accounts. The calculator lets you know in a printable report whether your deposits are within or exceed coverage limits. Click here for the calculator.

Are my premium trust accounts eligible for FDIC insurance coverage?
Yes, premium trust accounts can be eligible for pass-through FDIC insurance. However, the name and ownership interest of each owner in the account must be ascertainable from the deposit account records of the insured bank or depositor.

To accomplish this, accounts need to be set up as fiduciary accounts. The deposit account record of an insured depository institution must expressly disclose the existence of any fiduciary relationship and be titled as such.

An agency also needs to maintain accurate records indicating the amount of funds owed to each policy holder, carrier or the agency. These records should be kept in good faith and in the regular course of business by the depositor.

As long as these recordkeeping requirements are met, deposit insurance of up to $250,000 would be provided for the funds that the agency owns outright and up to $250,000 for each policyholder or underwriter for whom the funds are being held. Agencies should take a careful look at the timing and arrangement made with their carriers for payment of policyholder funds to determine ownership of these funds.

Would the premium funds deposited with the agency be insured separately from the owner's other accounts?
No. Funds deposited by fiduciary (agency) on behalf of one or more owners (policy holders, carriers, agency) would be added to any other deposits of the owner at the same insured bank and the total would be subject to the insurance limit of that owner.

Who should I contact if I have questions on my premium trust account and FDIC insurance eligibility?
If you have any specific questions pertaining to your agency’s premium trust accounts, you should contact the FDIC direct at 1-877-ASK-FDIC (275-3342).

This information is intended to provide guidance on this important topic. Specific questions regarding FDIC insurance should be directed to your banking institution or the FDIC.


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