The standard deposit insurance amount is $250,000 for each account ownership category.
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).
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.
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).
Each co-owners share of every joint account at the same insured bank are added together and insured up to $250,000.00.
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.
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.
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.
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.
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.
Generally, the funds in a formal revocable trust are insured separately as revocable trusts of the owner (grantor), if they meet the following requirements:
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).
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?
Answer: 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.
Answer: 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.
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