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The FDIC provides separate insurance coverage for funds depositors may have in different categories of legal ownership. This means a customer who has multiple accounts may qualify for more than $250,000 if the funds are deposited in different ownership categories and meet the requirements for each category.

The FDIC also has available the Electronic Deposit Insurance Estimator (EDIE).

Ownership Categories

Single Ownership:

Single ownership accounts are insured for $250,000. This category includes sole proprietorships. Agent, trustee, guardian, executor and custodian accounts (held for an individual) are considered the owner's funds.

For example:

A minor's account (opened under the Illinois Uniform Transfers to Minors Act or ILUTMA) is considered owned by the minor. A guardian is considered the custodian of the account but not the owner of the money. An account with a power of attorney belongs to the account holder (not the person with the power of attorney).

Joint Ownership:

Each co-owners share of every joint account at the same insured bank are added together and insured up to $250,000.00.

For example:

The co-owners share of every joint owner account is insured up to $250,000.00.


A person's IRA accounts at Itasca Bank & Trust Co. are insured up to $250,000.


All the deposit accounts of a partnership, a corporation or an unincorporated association are added together and insured up to $250,000. Only separately incorporated divisions/units would be eligible for separate insurance.

Public Units/Government:

Insurance coverage for a public unit's accounts (accounts of state, county or municipalities) is separately insured in the amount up to $250,000 for all time and savings deposits (this includes NOW accounts, savings accounts, money market accounts, and certificates of deposit) and up to $250,000 for all checking accounts.

Irrevocable Trust:

Generally, there is $250,000 in coverage on this type of trust. Due to their complexity, it is helpful to consult your attorney, financial planner or the FDIC to fully review these types of trusts and their FDIC insurance coverage.

Formal and Informal (e.g. Payable on Death/POD) Revocable Trusts:

All revocable trust accounts owned by the same person at the same bank are added together, and the owner is insured up to $250,000.00 per beneficiary.

For example:

On a joint revocable trust, coverage is computed by multiplying the number of owners/grantors times the number of beneficiaries times $250,000.00. Two owner/grantors with two beneficiaries can receive up to $1,000,000.00 in coverage.

FDIC Insurance Information on Revocable Trust Accounts

Generally, the funds in a formal revocable trust are insured separately as revocable trusts of the owner (grantor), if they meet the following requirements:

  • Have Beneficiaries.

Beneficiaries listed in a formal or informal trust must be people, charities, or non-profit organizations, and must either be named in the bank records (informal) or identified in the trust document (formal).

  • The owner's intention upon their death is that the funds will belong to the named beneficiary-this must be shown in the account title using terms like "in trust for" or "payable on death" (or can abbreviate IFT/POD).
  • POD accounts do not require a written trust agreement for FDIC insurance purposes. If FDIC insurance is invoked, the owner of the account may be asked to provide proof of their relationship to the beneficiaries.

Beneficiary examples

Sample Scenarios on FDIC Deposit Insurance Rules

Sample Scenarios on FDIC Deposit Insurance Rules

  1. Jane Smith comes into our bank and wants to open three joint accounts, one with her brother and one with each of her two sisters. Each account would have $85,000. Will all of her funds be fully insured?

    • Jane and brother: $85,000
    • Jane and sister #1: $85,000
    • Jane and sister #2: $85,000

     Yes. In joint accounts, each owner is insured up to $250,000 in all joint accounts (assumed to own half of each of the $85,000 balances), so Jane would have a total of $127,500 all of which would be insured.

  2. If Bob Johnson opened an account in his name for $250,000 and a second account "in trust for" (payable on death) for his mother for $250,000, would all of these deposits be fully insured?

    Answer: Yes. He would get $250,000 for funds in his single ownership account. "In trust for" accounts qualify for separate insurance for each beneficiary. Since there is one owner and one beneficiary, the funds in the second account would be insured for $250,000.

  3. If Mr. Jones opened an account with $100,000 and put another $100,000 in a business account in his name (sole proprietorship), will both of these accounts be fully insured?

    Answer: Yes. Sole proprietorship accounts are treated the same as individually owned funds of the person who is the sole proprietor. The funds in both these accounts are insured up to $250,000.00.

  4. The Watson family has established the following accounts in one bank. Are all the funds covered by FDIC insurance?

    Account Title: Account Balance:

    • Mary Watson $250,000
    • Mary and John Watson $500,000
    • Mary Watson (IRA) $250,000
    • John Watson (IRA) $250,000

    Yes, all funds are insured: $250,000 for single ownership accounts; $500,000 for their jointly owned account; and $250,000 for each IRA account.

  5. Mr. and Mrs. Rogers have a total of $600,000 in their two joint checking accounts. Are all of these funds covered by FDIC insurance?

    Answer: No. $500,000 would be covered under the joint account rule. $100,000 would be uninsured.

For more information about FDIC Insurance contact:

Dolores Little
Senior VP, Compliance Officer
630-773-0350 Ext. 439

When sending an email to anyone at Itasca Bank & Trust Co., please do not include passwords, account numbers, or any other confidential financial or personal information.

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Itasca Bank & Trust Co.

Itasca Bank & Trust Co., an independent, locally-owned bank, offers a broad spectrum of deposit accounts, savings products, and loans that are sure to suit your individual and business needs.

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