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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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