How to increase the amount of your FDIC insurance at Nevada State Bank beyond $250,000.
As a depositor in Nevada State Bank, you are entitled to know how your deposits are insured, and how the amount of insurance protection can be increased beyond $250,000 through a combination of accounts. The following questions and answers provide you with information you need to make informed decisions regarding your deposits:
INTEREST-BEARING ACCOUNTS: FDIC Insurance Coverage Permanently Increased to $250,000
A new law that took effect on July 21, 2010 permanently raised the Federal Deposit Insurance Corporation (FDIC) maximum deposit insurance amount to $250,000. That coverage limit applies per depositor, per insured depository institution for each account ownership category. In 2008, the previous maximum insurance amount of $100,000 had been temporarily raised to $250,000 until Dec. 31, 2013, but the new law makes this change permanent.
Q: What is the basic amount of FDIC insured protection for each depositor?
A: The basic insured amount for each depositor is $250,000. The FDIC insurance protection is extended to deposits at Nevada State Bank, including savings, NOW accounts, cashiers checks, official checks, pension accounts, letters of credit, checking, certificates of deposit, money orders, IRA and Keogh accounts.
Q: How can I increase the amount of my FDIC insurance at Nevada State Bank beyond $250,000?
A: If your account balances exceed $250,000, there are several quick and easy ways to increase or maximize your insurance coverage. Deposits maintained in different categories of legal ownership are separately insured. So you can have more than $250,000 insurance coverage in a single institution through a combination of different categories of ownership. The most common categories of ownership are single (or individual) ownership, joint ownership, and testamentary accounts.
In addition to the FDIC insurance on your other deposits, each depositor is separately insured up to $250,000 for funds held for retirement purposes (i.e. Individual Retirement Accounts or Keoghs).
You cannot increase FDIC insurance by dividing funds owned in the same ownership category among different accounts. The type of account - whether checking, savings, certificate of deposit, or outstanding official check such as a cashier's check, or other form of deposit - has no bearing on the amount of insurance coverage. Furthermore, the use of Social Security numbers or taxpayer identification numbers does not determine insurance coverage.
EXAMPLES:
#1 $2,000,000 FDIC-Insured Deposits for a Married Couple
| Husband's Individual Account | $250,000 |
| Wife's Individual Account | $250,000 |
| Husband and Wife Joint Account | $250,000 |
| Husband's IRA | $250,000 |
| Wife's IRA | $250,000 |
| Husband Payable on Death to Wife* | $250,000 |
| Wife Payable on Death to Husband* | $250,000 |
#2 $3,500,000 FDIC Insured Deposits for a Family or Group of Four
| Husband's Individual Account | $250,000 |
| Wife's Individual Account | $250,000 |
| Husband and Wife Joint Account | $250,000 |
| 1st Child's Aggregate Joint Account Funds | $250,000 |
| 2nd Child's Aggregate Joint Account Funds | $250,000 |
| Husband's IRA | $250,000 |
| Wife's IRA | $250,000 |
| Husband Payable on Death to Wife* | $250,000 |
| Wife Payable on Death to Husband* | $250,000 |
| Husband Payable on Death to 1st Child* | $250,000 |
| Husband Payable on Death to 2nd Child* | $250,000 |
| Wife Payable on Death of 1st Child* | $250,000 |
| Wife Payable on Death of 2nd Child* | $250,000 |
Q: How is FDIC insurance calculated for my family living trust?
A: Accounts in the name of a living trust set up by a lawyer, also referred to as totten, testamentary, or revocable trusts, are insured separately from any individual or jointly-owned funds of the owner(s). For the purposes of FDIC insurance coverage, a beneficiary is defined as a natural person, a charitable organization, or a non-profit entity properly organized under IRS code. Each owner is insured to $250,000 for each entitled beneficiary. Take a look at the following example:
The Family Trust
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NOTE: This trust states that the beneficiaries' share will pass to the beneficiaries' children if the beneficiary dies before the trustee(s). These grandchildren are not entitled to any trust assets or insurance coverage while their parent is alive.
For more information about the FDIC, please click here to visit their website.
For more information about Deposit Insurance Coverage
New Version of FDIC's Electronic Deposit Insurance Estimator (EDIE) Available
, please click here to visit their website.
*These illustrations also apply to other beneficiaries. A beneficiary is defined as a natural person, a charitable organization, or a non-profit entity properly organized under IRS code. For other qualifying combination accounts, check with a bank representative, or ask for the FDIC brochure, "Your Insured Deposits."
