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| The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects against the loss of deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC's creation in 1933, no depositor has ever lost even one penny of FDIC-insured funds. |
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| FDIC Temporary Unlimited Insurance Coverage |
| All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules. |
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| The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts. |
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| For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov. |
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| FDIC General Deposit Insurance Rules |
| The FDIC's standard maximum deposit insurance amount (SMDIA) is $250,000. All deposits at Ocean Bank are covered with FDIC insurance. The coverage is automatic and includes checking accounts, as well as savings accounts, money market accounts, CDs, and IRAs. The basic coverage amount is $250,000 per depositor. |
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If you own this type of account… |
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Your FDIC Coverage Limit is... |
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 Single account (owned by one person) |
$250,000 per owner |
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Joint account (owned two or more people)
For example, a husband and wife. |
$250,000 per co-owner |
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| Individual Retirement Account (IRA) |
$250,000 per owner |
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| For a complete description of account ownership categories, click here. |
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| Deposit Insurance on Revocable Trust Accounts |
| A revocable trust account is a deposit account that indicates an intention that the funds will belong to one or more beneficiaries upon the death of the owners. |
| Trust beneficiaries include: |
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an individual, regardless of the relationship to this owner. This includes spouse, children, grandchildren,
great-grandchildren, parents, siblings, cousins, nieces, nephews, uncles, in-laws, and friends. Corporations, partnerships and other legal entities cannot be beneficiaries. |
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charity or non-profit organization as defined by the IRS |
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| FDIC deposit insurance coverage for revocable trust accounts is provided to the owner of the trust. The amount of coverage is based on the number of beneficiaries named in the trust and, in some cases, the interests allocated to those beneficiaries, up to the insurance limit. If a revocable trust account has more than one owner, each owner's coverage is calculated separately, using the following rules: |
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Trust account owners with combined balances of less than $1,250,000 will receive coverage based on the number of beneficiaries multiplied by $250,000 up a maximum of $1,250,000. |
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Trust account owners with combined balances of greater than $1,250,000 and more than five beneficiaries will receive coverage based on the greater of $1,250,000 or the aggregate of all beneficiaries’ interest limited to $250,000 per beneficiary. |
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This page updated 8.30.2011 |
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