Recent news of bank failures has customers on edge. Are their deposits covered by FDIC insurance? Should they move their money to another bank? What happens if there is a failure? It’s a common misconception that $250,000 in each account is covered; this is reported in the press repeatedly. It’s also a misnomer that each customer has $250,000 of coverage in each institution. So what is the right answer? FDIC deposit insurance is calculated by the account ownership category, which is defined by FDIC regulations. There are separate categories for individual accounts, joint accounts, and others. Plus, the trust rules will be changing in a few years.
What You’ll Learn
- What types of accounts are covered, and which are not?
- Determining the Standard Minimum Deposit Insurance Amount (SMDIA)
- General principles: coverage by account ownership category
- Determining account ownership
- Death of the account owner
- Single accounts, joint accounts, trusts – differing rules
- Trust accounts- revocable and irrevocable; formal and informal
- Retirement account coverage
- Other account types: business, government, and others
- Review of the FDIC’s official advertising sign and statement (including upcoming changes)
Who Should Attend
This webinar is appropriate for anyone in the institution that needs to know the ins and outs of FDIC deposit insurance, including frontline staff that need to respond to customer inquiries. This also includes deposit and operations professionals, new account representatives, call center personnel, compliance officers, auditors, risk management personnel, legal, and anyone else in a position to need to understand how to accurately convey the requirements to customers or others in the institution.