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Ownership Categories
Single Accounts
A single account is a deposit owned by one person. This ownership category includes:
- An account held in one person’s name only, provided the owner has not designated any beneficiary(ies) who are entitled to receive the funds when the account owner dies
- An account established for one person by an agent, nominee, guardian, custodian, or conservator, including Uniform Transfers to Minors Act accounts, escrow accounts and brokered deposit accounts
- An account held in the name of a business that is a sole proprietorship (for example, a “Doing Business As” or DBA account)
- An account established for or representing a deceased person’s funds – commonly known as a decedent’s estate account
- An account that fails to qualify for separate coverage under another ownership category
If an account title identifies only one owner, but another person has the right to withdraw funds from the account (e.g. as Power of Attorney, or custodian), the FDIC will insure the account as a single ownership account.
The FDIC adds together all single accounts owned by the same person at the same bank and insures the total up to $250,000.
| Important! |
If an account is owned by one person, and the owner has designated one or more beneficiaries who will receive the deposit when the account owner dies, the account would be insured as a revocable trust account.
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| Account Title |
Deposit Type |
Account Balance |
| Marci Jones |
MMDA
|
$
15,000
|
| Marci Jones |
Savings |
20,000 |
| Marci Jones |
CD |
200,000
|
| Marci’s
Memories (a sole proprietorship) |
Checking |
25,000 |
| Total |
|
260,000
|
| Amount Insured |
|
250,000
|
| Amount Uninsured |
|
$ 10,000
|
Explanation
Marci Jones has four single accounts at the same insured bank, including
one account in the name of her business, which is a sole proprietorship.
The FDIC insures deposits owned by a sole proprietorship as the single
account of the business owner. The FDIC combines the four accounts, which
equal $260,000, and insures the total balance up to $250,000, leaving
$10,000 uninsured.
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