Private Bank Minnesota

FDIC Coverage Permanently Raised to $250,000 per Depositor

Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor for all account categories, including IRAs and certain other retirement accounts.

What does this mean for our clients?

  • Your accounts at Private Bank Minnesota continue to be insured by the FDIC for up to $250,000 per depositor.
  • You can easily increase coverage beyond that amount by setting up accounts in separate ownership categories.  The most common account ownership categories for individual and family deposits are:
    • Single accounts
    • Joint accounts
    • Revocable trusts accounts (includes payable on death accounts and living trust accounts)
    • And certain retirement accounts, including Individual Retirement Arrangements (IRAs)

Here’s an example of how you can maximize your FDIC insurance coverage:

  • Revocable Trust Deposits with Five or Fewer Beneficiaries — Each owner's share of revocable trust deposits is insured up to $250,000 for each beneficiary (i.e., $250,000 times the number of different beneficiaries), regardless of actual interest provided to these beneficiaries.
  • Revocable Trust Deposits with Six or More Beneficiaries — Each owner's share of revocable trust deposits is insured for the greater of either (1) coverage based on each beneficiary's actual interest in the revocable trust deposits, with no beneficiary's interest to be insured for more than $250,000, or (2) $1,250,000.

Example: Bill has a $250,000 POD account with his wife Sue as beneficiary. Sue has a $250,000 POD account with Bill as beneficiary. In addition, Bill and Sue jointly have a $1,500,000 POD account with their three children as equal beneficiaries.

Account Title

Account Balance

Amount Insured

Amount Uninsured

Bill POD to Sue

$ 250,000

$ 250,000

$ 0

Sue POD to Bill

$ 250,000

$ 250,000

$ 0

Bill & Sue POD to 3 children

$1,500,000

$1,500,000

$ 0

Total

$2,000,000

$2,000,000

$ 0

These three accounts totaling $2 million are fully insured because each owner is entitled to $250,000 of coverage for the interests of each beneficiary in the accounts. Bill has $1 million of insurance coverage because he names four beneficiaries – his wife in the first account and his three children in the third account.  Sue also has $1 million of insurance coverage because she names four beneficiaries – her husband in the second account and her three children in the third account.

If you have questions or would like assistance to maximize FDIC coverage for your accounts, please call your banker.

Visit the FDIC website to calculate your deposit insurance coverage
These websites are informative and easy to use:

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