FDIC Insurance


By operation of federal law, beginning January 1, 2013, funds deposited in a non-interest 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 non-interest bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000.00), for each deposit insurance ownership category.

Institutions placing notices on regular account statements with space limitations may wish to utilize a shorter notice to NIBTA depositors, such as:

NOTICE: By federal law, as of 1/1/2013, funds in a non-interest bearing transaction account (including an IOLTA/IOLA) will no longer receive unlimited deposit insurance coverage, but will be FDIC-insured to the legal maximum of $250,000.00 for each ownership category.

Please Note: If an IDI cannot use the above Web link in its depositor notices due to spacing or other issues, the IDI can use the following: “What’s New” on www.fdic.gov.

Here are answers to some frequently asked questions about the FDIC coverage.

Q: What types of accounts are eligible for FDIC insurance?

All deposit accounts at insured banks are covered up to the insured limit. However, non-deposit products such as mutual funds, stocks, bonds, and other investments purchased through an insured bank are not covered.

Q: How do I know how much I’m covered?

For deposit accounts the base coverage amount is $250,000.00 per depositor for combined deposits in the same bank. However, if you have joint and individual accounts, you and your spouse may be eligible for additional coverage. To calculate your own accounts covered by FDIC insurance, visit www.myfdicinsurance.gov and use EDIE the Estimator to create an easy to read report.

Q: What do I have to do to obtain this coverage?

The FDIC coverage increases are automatic. There is no action required on your part.

Q: What about my business accounts?

Depositors owned by corporations, partnerships, and unincorporated associations, are insured separately from the owner’s personal accounts. They are added to the owner’s personal accounts, if any, at the same bank and the total is insured up to $250,000.00.