Each depositor insured to at least $250,000 per insured bank

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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Winter 2003/2004

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7. If you picked "True" you are correct.

Payable-on-death (POD) accounts and other revocable trust accounts at a bank are insured up to $100,000 for each "qualifying beneficiary," which is defined as the depositor's spouse, child, grandchild, parent or sibling. Using our example, if you establish a POD account naming your two children as beneficiaries it would be insured up to $200,000. Under the FDIC's rules, other beneficiaries, including in-laws, cousins, nieces, nephews, friends and organizations (including charities) do not qualify. The portion payable to a non-qualifying beneficiary would be added to any accounts you have at the bank in the single account category and that total will be insured to $100,000.

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Last Updated 06/01/2004 communications@fdic.gov