Maximizing FDIC Insurance on Bank Deposits
Is it possible to have more than $250,000 FDIC insurance on your bank deposits in one bank? The short answer is “yes”!
Find Out What’s Right for You
The standard deposit insurance amount is $250,000 per depositor. The FDIC has an Electronic Deposit Insurance Estimator (EDIE) on its website at fdic.gov to help you see how you qualify.
The FDIC website also explains coverage for common account types such as single, joint, or trust, as well as other types of accounts such as retirement accounts or employee benefit plan accounts, corporations, partnerships, and unincorporated associations.
At First Oklahoma Bank, we have trained our retail deposits staff to help people use EDIE to calculate the FDIC insurance that is available to them based on their unique circumstances.
Call us at 918-392-2500 and talk to someone who can help!
The most common account is “a joint account, or a deposit account owned by two or more people and titled jointly in the co-owners’ names only, with no beneficiaries. If the co-owners have equal rights to withdraw money from a joint account, a co-owner’s shares of all joint accounts at the same insured bank are added together. For example, if a couple has a joint money market account, a joint savings account, and a joint CD at the same insured bank, each owner’s shares of these accounts are added together and insured up to $250,000 per owner, providing $500,000 in coverage for the couple’s joint accounts.”
Revocable Trust Account
There is also $250,000 FDIC insurance coverage for revocable trust accounts. A revocable trust account is "owned by one or more people expressing the intent that upon the death of the owner(s), the deposited funds will pass to one or more named beneficiaries."
FDIC insurance covers both informal revocable trusts (i.e., naming payable on death beneficiaries on an account), and formal revocable trusts also known as living or family trusts (written agreements used in estate planning).
"If a revocable trust owner is attempting to insure $1,250,000 or less, with five or fewer unique eligible beneficiaries, then the maximum available deposit insurance coverage for those accounts is calculated by multiplying $250,000 times the number of unique beneficiaries."
As you can see, this can be complicated based on each individual’s or family’s circumstances. That’s why it is important to know your local banker. We delight in helping each person accomplish what is best for his or her situation.
Additional Insurance Programs
First Oklahoma Bank also has two other programs that can be used by either businesses or individual depositors to maximize their deposit insurance coverage.
- CDARS– Funds are placed by one bank (i.e., First Oklahoma Bank) in a network of over 3,000 participating banks in increments of $250,000. Each increment is insured for up to $250,000. FOB manages all the deposits and provides one statement to the customer.
- ICS (Insured Cash Sweeps) – provides access to multi-million FDIC insurance coverage while placing funds in a network of banks with FDIC insurance up to $250,000 in each bank, managed by FOB. Demand accounts allow for unlimited withdrawals, while savings (money market) accounts allow up to six withdrawals per month.
Using all three options together, customers have a lot of flexibility to maximize their FDIC insurance coverage while placing all their deposits at First Oklahoma Bank or any other FDIC-insured bank.
Here to Provide Answers
If you, your family, friends, or colleagues would be interested in learning more about arranging your deposits over $250,000, we are always in the business of gathering deposits, and we are here to help!
Give us a call at 918-392-2500 .