FDIC coverage

No. Coverage is automatic if the account is an FDIC-insured product held at an FDIC-member institution such as U.S. Bank.

Yes. In addition to individual and joint accounts, the FDIC insures deposits from the following ownership categories: corporations, partnerships, limited liability companies (LLCs), for-profit unincorporated associations and not-for-profit organizations.

An ownership category is the type of owner, such as an individual account versus an LLC account. An account type is the type of deposit held by an ownership category, such as a checking account versus a savings account.

Each ownership category is treated independently of the others. So, if an individual has accounts with a bank and that individual is also part of another ownership category, such as an LLC, with accounts at the same bank, both ownership categories are insured.

The limit is generally $250,000 for all account types combined within a single ownership category at a single bank. For example, if an individual owns both a savings and a checking account at the same bank and the combined balance of the two account types is $300,000, the individual is insured for $250,000. If that individual is also part of another account category at that same bank, such as an LLC, the LLC is insured separately for up to $250,000 for all its account types combined.

Whether an account is owned by one person or ten, each owner is insured up to $250,000. For example, if an individual has a single account with a bank and that account has a $1 million balance, that person is covered up to $250,000. If a joint account with ten owners has a $1,000,000 balance, each person is covered for their $100,000 share. Each co-owner must be a human being, i.e., the owner cannot be a corporation, trust or other legal entity. Additionally, all co-owners must have equal access to the account and must personally sign the Signature Card.

Investment products, such as stocks, bonds, mutual funds, crypto assets, life insurance policies, safe deposit boxes and their content, annuities, and municipal securities, are not covered. U.S. Treasury bills, bonds and notes are not insured by the FDIC, but are insured by the U.S. government.

It can, depending upon the type of account. The FDIC has a calculator, the electronic deposit insurance estimator (EDIE), designed to give an accurate deposit insurance calculation.

The accounts are treated as if they are held at different banks for six months. This grace period gives depositors time to restructure their accounts if needed so they do not exceed the FDIC insurance limit.

If the depositor holds CDs from the assumed bank, the CDs are separately insured until the earliest maturity date after the end of the six-month grace period. CDs that mature during the six-month period that are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period. If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

• Visit FDIC.gov
• Call toll free at 877-ASK-FDIC (877-275-3342)
• Call toll free 800-925-4618 (for hearing impaired)