Article
FAQs
Advertising
Question: How should we use the official FDIC digital sign on social media posts and print ads?
Answer: The FDIC FAQs state that the bank is not required to display the official FDIC digital sign on its social media advertisements. In addition, this signage rule does not apply to print ads. However, if the social media post or print ad constitutes an advertisement, banks should ensure the advertisements (regardless of medium) are compliant with the official advertising statement and include the FDIC advertising official statement (e.g., Member FDIC).
FDIC Membership Signage
Question: Is the credit life and disability insurance that is financed in connection with a loan considered a non-deposit product triggering the FDIC’s non-deposit signage rules or is it considered part of the credit product?
Answer: The FDIC clarified via their website FAQ related to their Part 328 final rule regarding FDIC membership and non-deposit signage provisions that it views credit life insurance as well as disability insurance as “part of the offering of credit.” Under 12 CFR 328.1, the definition of “non-deposit product” does not include “credit products” which means the non-deposit sign is not required when a bank offers credit products.
Note however, this FAQ is strictly addressing the FDIC’s signage requirements, not the “Not, Not, May” disclosure requirements found in the Consumer Protections in Sales of Insurance rules for non-deposit products. Credit life and disability insurance as well as flood insurance, are covered under Consumer Protections in Sales of Insurance. Thus, the bank would still have to provide the “Not, Not, May” disclosure to consumers purchasing credit life and disability insurance in conjunction with a credit extension.
ATMs/ITMs:
Question: Our ATMs do not accept deposits, but the customer can use the ATM to transfer funds. Would either the official FDIC physical or digital sign be required?
Answer: In reviewing the final rule and the updated 12 CFR Part 328 regulation, the scoping statement for ATMs and like devices signage requirements state “this section governs signage for insured depository institutions’ automated teller machines and other remote deposit facilities that receive deposits.” Therefore, the FDIC official sign requirements do not apply to non-deposit taking ATMs – even if the ATM has the ability to transfer funds between accounts.
Question: What is the FDIC official digital signage requirement for an interactive teller machine (ITM) where the customer is speaking to a teller via video? The screen would display the teller at the time of the deposit, not a static transaction screen.
Answer: If your ITM does not offer access to non-deposit products, and was put into service before Jan. 1, 2025, the bank is not required to display the official FDIC digital sign. Instead, it may place a FDIC physical official sign on the ITM, provided the sign is not degraded or defaced.
For ITMs put into use after Jan. 1, 2025, regardless of whether the ITM offers access to non-deposit products, the bank would be required to place the official FDIC digital sign on each transaction screen involving an FDIC-insured product. Thus, if the customer first selected “deposit” and then teller appeared via video, the official FDIC digital sign would need to appear on the screen where the customer selected to make a deposit (and thereby prompted the teller interaction).
Digital Channels (website, mobile Apps):
Question: On the homepage of our website, can our bank logo be on the left side of the page and the FDIC official digital sign be aligned on the right side of the page? Both will appear directly across from one another on the webpage.
Answer: The rule requires banks to display the official FDIC digital sign in a clear, continuous, and conspicuous manner. The FDIC FAQs state the FDIC would expect to see the official FDIC digital sign above the bank’s name, or to the right or below the bank’s name. But in all circumstances, the official FDIC digital sign must be near the top of the relevant page or screen and in close proximity to the bank’s name. Placing it directly to the right of the bank’s logo seems to be in compliance with the rule.
Question: Can the bank modify the official FDIC digital sign for mobile devices to fit on multiple lines so the wording remains legible?
Answer: The FDIC states that, the official FDIC digital sign should be displayed as shown in the final rule (one line), with no alterations to the text except for color variation as noted in the regulation. However, they go on to state if the image does not fit a particular device or screen, the official digital sign can be “scaled,” “wrapped,” or “stacked” to fit the relevant screen and satisfy the “clear and conspicuous” requirement. The FAQ provides an example of the logo being stacked.
Question: How should we display the official FDIC digital sign and non-deposit signage if our online banking platform and mobile app allow consumers to transact with deposit accounts, but also permit customers to view their investment accounts, but not transact on them?
Answer: The rule requires the official FDIC digital sign be placed on the bank’s website home page, landing or login pages and pages where the consumer can transact with their deposit accounts. So, the official FDIC digital sign would be required on a page where a consumer could transact on their deposit accounts and should be placed near the top of the screen in close proximity to the bank name (if applicable) or login.
If the website page or app screen also provides balance information related to non-deposit accounts but does not permit access to the non-deposit accounts or provide a link to a third-party provider of the investment account, the NDP signage rules are not triggered. Part 328.5(g) indicates the NDP signage provisions are triggered when a digital channel offers access to both insured deposits and non-deposit products. However, if the information related to the investment account is such that it would constitute an advertisement, the “not, not, may” disclosures would be triggered under the NDP advertising rules.
Question. On our website, we have a webpage for Credit Cards that goes to third party site. Is this considered a non-deposit product? Would this webpage trigger the non-deposit product signage requirement?
Answer: The definition of non-deposit product specifically excludes credit products and safe deposit box services. As a result, the mention of credit cards and link to a third-party card provider does NOT trigger the official FDIC signage requirements, notice rules, the non-deposit product signage requirements or any of the other requirements discussed during this webinar.
Question: Where can we download the new FDIC logo?
Answer: The FDIC has made several versions of the official FDIC digital sign available for banks on FDIC Connect, a secure website operated by the FDIC to exchange information.
FDIC Insurance Coverage
Question: How does the Federal Deposit Insurance Corp. calculate deposit insurance?
Answer: The standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank. For example, if a person has a certificate of deposit at Bank A and has a certificate of deposit at Bank B, the amounts would each be insured separately up to $250,000. Funds deposited in separate branches of the same insured bank are not separately insured.
The FDIC provides separate insurance coverage for funds depositors have in different categories of legal ownership, such as single accounts, joint accounts, trust accounts, retirement accounts, etc. The FDIC refers to these different categories as “ownership categories.” This means that a bank customer who has multiple accounts may qualify for more than $250,000 in insurance coverage if the customer’s funds are deposited in different ownership categories and the requirements for each ownership category are met. The ownership categories and requirements of each are detailed here.
The FDIC offers a calculator for depositors to use to help calculate insurance coverage.
Question: During a recent regulatory call, a statement was made in regard to upcoming changes to FDIC deposit insurance in April 2024. Is the amount of FDIC insurance per depositor increasing as of April 1, 2024?
Answer: No. The amount of FDIC insurance available per depositor per ownership category remains at $250,000. However, the FDIC approved changes in January 2022 to the deposit insurance rules for revocable trust accounts (including formal trusts as well as informal trusts, such as POD/ITF), irrevocable trust accounts, and mortgage servicing accounts. For most trust depositors (those with less than $1,250,000), the FDIC expects the coverage levels to be unchanged. However, the new rule may reduce coverage for those depositors who have placed more than $1,250,000 per owner in trust deposits at one insured institution.
The new rule combines the revocable and irrevocable trust account categories into one insurance category, eliminates some complex rules, and utilizes a simple insurance calculation. As of April 1, 2024, a deposit owner’s trust deposits will be insured in an amount up to $250,000 for each of the trust beneficiaries, not to exceed five, regardless of whether a trust is revocable or irrevocable, and regardless of contingencies or the allocation of funds among the beneficiaries. (The current rule provides separate insurance for revocable and irrevocable trusts.) This will provide for a maximum amount of deposit insurance coverage of $1,250,000 per owner, per insured depository institution for trust deposits.
Nondeposit Signage
Question: Is the credit life and disability insurance that is financed in connection with a loan considered a non-deposit product triggering the FDIC’s non-deposit signage rules or is it considered part of the credit product?
Answer: The FDIC clarified in their FAQ related to the non-deposit signage provisions that it views credit life insurance as well as disability insurance as “part of the offering of credit.” Under 12 CFR 328.1, the definition of “non-deposit product” does not include “credit products” which means the non-deposit sign is not required when a bank offers credit products.
Question: If we have a broker in an office of our building, but the brokerage is not owned by the bank, are we required to have the non-deposit product signage on door/window of the brokerage office?
Answer: Yes. If either a bank employee or another third-party is offering non-deposit products in a bank facility, the area in which they offer these products must have the non-deposit product signage. The signage needs to be clearly, continuously, and conspicuously displayed. Just a reminder, this area must be separate from and cannot be in close proximity to your deposit-taking areas.
Policy and Procedures
Question: The FDIC signage rule included a requirement that banks establish written policy and procedures to ensure compliance with Part 328 of the FDIC’s rules related to FDIC Official Signs and Advertisement of Membership. Was the policy mandatory compliance date delayed for the policy and procedures requirement or must banks still have policies and procedures in place by May 1, 2025?
Answer: The requirement to establish written policy and procedures for the bank’s FDIC signage program was not delayed and is required by May 1, 2025. However, your written policy and procedures are not required to address the elements of the rule that were delayed until March 1, 2026. These delayed elements include the use of FDIC’s official digital signage on the bank’s website/mobile app and ATMs. By May 1, your policy and procedures must address provisions of the rule related to False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name and Logo requirements (which were effective Jan. 1, 2025) and the requirements related to physical premises signage related to FDIC-insured product and non-deposit product offerings.