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Ownership Categories
Government Accounts
The category known as Government accounts (also called Public Unit accounts) includes deposit accounts owned by:
- The United States, including federal agencies
- Any state, county, municipality (or a political subdivision of any state, county, or municipality), the District of Columbia, Puerto Rico and other government possessions and territories
- An Indian tribe
Insurance coverage of a government account is unique in that the insurance coverage extends to the official custodian of the deposits belonging to the government or public unit, rather than to the government unit itself.
Coverage from December 31, 2010 through July 20, 2011
Beginning December 31, 2010 noninterest-bearing transaction accounts have unlimited coverage.
As a result, during this period, accounts held by an official custodian of a government unit were insured as follows:
- up to $250,000 for the combined total of all time and savings deposits (including
NOW accounts), and
- unlimited coverage for noninterest-bearing transaction accounts
Through July 20, 2011, there was no difference in deposit insurance coverage when an official custodian deposits money in an insured-bank in-state or out-of-state.
Coverage from July 21, 2011 through December 31, 2012
Beginning July 21, 2011, banks will be allowed to pay interest on demand deposit accounts. As a result, during this period, accounts held by an official custodian of a government unit will be insured as follows:
In-state accounts
- up to $250,000 for the combined amount of all time and savings accounts (including NOW accounts)
- up to $250,000 for the combined amount of all interest-bearing demand deposit accounts, and
- unlimited coverage for noninterest-bearing transaction accounts
Out-of-state accounts
- up to $250,000 for the combined amount of all time accounts, savings accounts (including NOW accounts) and interest-bearing demand deposit accounts, and
- unlimited coverage for noninterest-bearing transaction accounts
Coverage beginning January 1, 2013
On January 1, 2013, the temporary unlimited coverage for noninterest-bearing transaction accounts will expire. As a result, accounts held by an official custodian of a government unit will be insured as follows:
In-state accounts
- up to $250,000 for the combined amount of all time and savings accounts (including NOW accounts), and
- up to $250,000 for all demand deposit accounts (interest-bearing and noninterest-bearing)
Out-of-state accounts
- up to $250,000 for the combined total of all deposit accounts
| Important! |
A Negotiable Order of Withdrawal (NOW) account is a savings deposit not a demand deposit account. |
To learn more about deposit insurance coverage for Government Accounts, see FDIC’s Fact Sheet – Deposit Insurance for Accounts Held by Government Depositors at:
www.fdic.gov/deposit/deposits/factsheet.html
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