Financial Institution Employee’s Guide to Deposit Insurance

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Important update!

Amendments to revocable and irrevocable trust rules effective April 1, 2024

Changes to Mortgage Servicing Accounts Rule Effective April 1, 2024

All rules described in this section are current through March 31, 2024. The FDIC approved changes, on January 21, 2022, to the deposit insurance rules for revocable trust accounts (including formal trusts, POD/ITF), irrevocable trust accounts, and mortgage servicing accounts. For most trust depositors (those with less than $1,250,000), the FDIC expects coverage levels to remain unchanged. However, the new rule may reduce coverage for depositors who have placed more than $1,250,000 per owner in trust deposits with an insured institution. The new rule (PDF) combines revocable and irrevocable trust account categories into one insurance category, eliminates some complex rules and uses a simple insurance calculation. You can learn more about the new changes, including for mortgage servicing accounts, by viewing this fact sheet (PDF). The changes come into effect on April 1, 2024, giving bankers and depositors time to adjust to the new rule, including making changes to avoid a potential reduction in coverage. We suggest depositors and bankers review the new rules for term deposits with maturities beyond April 1, 2024.

Questions?

You can submit your request using the FDIC Information and Assistance Center.
You can also call the FDIC at (877) 275-3342 or (877) ASK-FDIC.
For the hearing impaired, call (800) 877-8339.

2016 edition

Full Guide – PDF

Financial Institution Employee Guide to Deposit Insurance (“Employee Guide”)

Note on possible changes to this employee guide:

This edition of the Guide to Deposit Insurance for Employees of Financial Institutions (“employee handbook” Where “Guide”) includes the regulatory and statutory deposit insurance rules that come into effect on the date of publication. The online version of this employee handbook will be updated during any regulatory or statutory modification affecting the content of this document.

Presentation – PDF

Introduction

About employee handbook

This employee handbook is intended to assist depository institutions insured by the Federal Deposit Insurance Corporation (“FDIC”) in providing accurate information about FDIC insurance coverage to their depositors.

To note: For simplicity, the term Insured Depository Institution (“IDI”) is used throughout this employee handbook means any bank or thrift association that is insured by the FDIC.

Important disclaimers

The information contained in this employee handbook is intended to assist IDI employees in determining FDIC deposit insurance coverage for deposits held in IDIs. The information in this resource is based on the FDIC’s deposit insurance rules and regulations found in 12 CFR Part 330 and related advisory notices in effect as of the date of publication of this document.

The employee handbook is not intended to provide legal, financial or estate planning advice, or to provide advice for the creation of revocable or irrevocable trust agreements. For legal, financial or estate planning advice, Depositors are recommended to contact a financial advisor or attorney.

The examples provided in this employee handbook are drawn from thousands of questions received by the FDIC. The examples are not intended to describe all situations that may arise. This is especially true for revocable or irrevocable trusts.

Be careful when applying the examples in this employee handbook to determine FDIC deposit insurance coverage for a specific trust arrangement. Although the trust described in an example may appear similar to an actual trust, there may be subtle differences in terms and conditions that could cause a different answer when calculating deposit insurance coverage. In addition, the modification of a trust agreement at a later date may affect the calculation of the coverage of a particular trust. In addition, the death of an owner or beneficiary will significantly affect FDIC deposit insurance coverage. This employee handbook may use examples or terminology that may not apply to a specific individual’s trust due to regulations or statutes in the state in which the depositor resides.

Federal law expressly prescribes the specific amount and limits of deposit insurance that the FDIC may pay to depositors, and no representation made by any person or organization shall increase or vary such coverage.

The employee handbook should be used in conjunction with the FDIC Deposit Insurance Reference Materials available on the FDIC Deposit Insurance Web page. To get help from an FDIC deposit insurance expert, call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342).

All names used in examples in this Guide are fictitious and do not depict real people.

Effective date

This edition of employee handbook describes the deposit insurance rules in effect at the time of publication. Included in this Guide is current information on all deposit insurance coverage regulations in effect up to the date of publication of this employee handbook. Additional information can be found on the FDIC website.

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