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Insurance Corporation

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

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Financial Institution Letters

Deposit Insurance Coverage
Changes to FDIC Rule for Deposit Insurance Coverage
September 18, 2006

Summary: The FDIC Board of Directors has permanently adopted the attached final rule to implement provisions of the Federal Deposit Insurance Reform Act of 2005 pertaining to deposit insurance coverage. The Board had issued an interim rule, effective April 1, 2006, to implement the new insurance coverage provisions. The final rule is unchanged from the interim rule, except that the preamble provides a more detailed explanation of the types of retirement accounts included in the rule changes. The final rule takes effect on October 12, 2006.


  • Effective April 1, 2006, coverage for certain retirement plan deposits increased to $250,000. The basic insurance limit for other depositors - individuals, joint account holders, businesses, government entities and trusts - remains at $100,000.
  • Pass-through coverage for employee benefit plans is no longer tied to an institution's capital level, although institutions must meet certain capital requirements to accept employee benefit plan deposits.
  • The FDIC Board of Directors is authorized to increase the insurance limits for all deposit accounts every five years, beginning in 2011, based on the rate of inflation.
  • This FIL supersedes FIL-27-2006, dated March 28, 2006.

FDIC-Insured Institutions

Suggested Routing:
Chief Executive Officer
Compliance Officer

Related Topics:
FDIC Deposit Insurance Regulations 12 C.F.R. 330

Final Rule - PDF 64k (PDF Help)

FDIC Call Center, 1-877-275-3342

Printable Format:
FIL-83-2006 - PDF 28k (PDF Help)

FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, please visit

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562- 2200).

Last Updated 10/06/2009

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