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Press Release

FDIC Approves Final Rule Regarding Deposit Insurance Simplification

Friday, January 21, 2022

For Release

WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) today approved a final rule to simplify aspects of the agency’s deposit insurance coverage rules.

The final rule simplifies deposit insurance coverage for deposits held in connection with revocable and irrevocable trusts by merging these two deposit insurance categories and applying a simpler, common calculation to determine coverage. Currently, the FDIC receives more inquiries related to deposit insurance coverage for trust deposits than all other types of deposits combined. The final rule will make the trust rules consistent and easier to understand for bankers and depositors and will facilitate prompt payment of deposit insurance by the FDIC in the event of an insured depository institution’s failure. Meanwhile, the FDIC expects that the vast majority of trust depositors will experience no change in the coverage for their deposits when the final rule takes effect.

Additionally, the final rule amends the rule that governs coverage for mortgage servicing accounts to allow principal and interest funds advanced by a mortgage servicer to be included in the deposit insurance calculation.

The final rule will take effect on April 1, 2024.

FDIC: PR-4-2022