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FDIC Consumer News - Winter 1997/1998

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.

New Procedures to Address Customer
Confusion Over Bank Names

In the spring 1997 issue of FDIC Consumer News, we cautioned readers about some banks and thrifts operating branches and even Internet sites under a different “trade” name than the company’s “legal” name. This situation may occur, for example, if a bank buys another institution but leaves the name unchanged in order to preserve name recognition in the community. We noted that while this practice isn’t common, the FDIC and other federal regulators are concerned about customer confusion, including the possibility that a depositor might inadvertently exceed the $100,000 insurance limit by incorrectly believing money was placed in two different institutions.

Now, here’s an update. The FDIC and the other federal regulators plan to announce soon new procedures for banks and thrifts to use if they operate branches, Internet sites or other facilities under different trade names. The interagency guidance includes suggestions that signs and advertising clearly indicate the connection between a particular facility and the bank or thrift that owns it.

Also, depositors opening new accounts should be asked to sign a statement acknowledging that a particular facility is part of another bank or thrift and that deposits held at each facility are not separately insured. For more information, contact Marc Goldstrom, an attorney in the FDIC’s Legal Division (550 17th St., NW, Washington, DC 20429, phone 202-898-8807).

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Last Updated 08/03/1999 communications@fdic.gov