FDIC Ins

CD for $200,000 in the name of both husband and wife, is it insured for $100,000 or for $200,000.

If I understand this correctly each individual is insured for up to 100,000. So each individual is covered, if this is all they have at this bank. Am I correct?

FDIC's EDIE site is very helpful. Might want to take a look.

Yes they are insured but remember the future value of the CD will put it over 200k so the interest will not be insured.

Also, it is only fully insured if this is the only joint account EITHER of them have at the bank.

"if this is all they have at this bank. Am I correct?" Reads like that is what he was saying.

Post deleted by Mary Beth Guard

Each of them could have up to $100,000 in a sole ownership account. H -- $100,000; W -- $100,000. PLUS, there would be insurance for up to $100,000 for the aggregate amount of joint deposits each individual has (separate from theinsurance of each one's sole ownership account). So you look at all the joint accounts in which W has an interest. Add her part of all those joint accounts together for up to $100,000 in insurance. Do the same for H.

So, you've got up to $400,000 potential insurance coverage right there.

You can't look at the amount in just one joint account and say "Oh, that's insured." You have to always look at all the joint accounts in which a person has an interest.

Hi Mary Beth,

Isn't there a potential of 600k (of course providing the limits are not raised)

Single Ownership

H 100k (of course this wouldn't be the wisest move, i would say put one other person as a bene on both of these accounts so it would not be part of the probate estate)
W 100k

LT/ITF/POD

H POD W 100k
W POD H 100K

Joint

H and W 200k (H 100k and W 100k)

Your thoughts?
Thanks

That is correct. If you review the "Your Insured Deposits" on the fdic.gov website, customers have the potential of being covered for MUCH more than $100k. And if the limit is raised, it's even higher.

Your point on the single ownership is well-taken, and is usually not advised. However - it's up to the customer to decide what works for them. If they're ok with no beneficiaries on $100k in a single ownership account - they can realize that coverage. As soon as they add a beneficiary, the category changes and they may lose some of their overall coverage.

Yes. If you add POD accounts, you could get much more insurance. They could choose as many beneficiaries as they like, so long as they are a natural person, charity, or nonprofit organization and could get per beneficiary insurance coverage, separate from their interests in joint accounts and their individual accounts.

Thank you both

Ok. So they only have this account with a balance of $200,000 at this bank. The husband get $100,000 and the wife gets 100,000 coverage for a total of $200,000 worth of coverage. The question from the customer is to confirm that the whole balance would be covered if the bank failed based on how the account is titled.

If you have never used EDIE on the FDIC's website I strongly encourage you all to use it now. I have been in banking over 30 yrs and still get confused sometimes over FDIC insurance. EDIE is the best thing since sliced bread!! And best of all you can print a terrific report for your customer to see. We have saved a lot of deposits the past weeks by showing customers they are fully insured (based on the titleing of an account) although they may have more than $100,000 on deposit with us. In some cases over $800,000! The FDIC has recently updated the format but it is still easy to use and available to your customers as well. Give it a try.

As I understand it, the balance would be fully covered; interest earned would not (if the balance + interest amounted to over $200k in total). They would each get $100,000 - no more - as long as it was the only joint account either of them had at that bank.

I second that! The EDIE site is a great tool for your branch folks to be using to hold on to deposits that might otherwise leave. We put a link to the site on our website, both for our platform people to use, and to make it simpler for customers to find.